Last week we began our three-part series on hiring and compensation. We discussed what to look for in a potential employee and the types of things to keep in mind when bringing them onto your team. Today, we look at different ways to compensate.
Build your business plan and then follow the plan - As the owner or GM of a rental business, your first responsibility is to make sure you have each position designated as to how it addresses the customer need and the customer experience. Rental is an occupation which requires a fast intellect and quick decisions. Your ability to "blueprint" the positions that make the decisions is your first key to success.
Investigate competitive pay plans - How much are employees paid in your area? As discussed last week, we are not just referring to the rental industry but rather all businesses which employ the type of person you want in your business. Doing your "due diligence" in this area will give you the information you need to retain "best in class" employees.
Pay the position, not the employee - Whatever the talent level within your business, there must always be a conscious reasoning for the range of compensation for each position. You are guiding your employees on a journey of professional growth through increased responsibility and matching compensation. Do not fall into the trap of over-compensating a particular employee based upon talent alone.
Goals and objectives - We live in a statistical world where every little percentage point of success is scrutinized beyond belief and fortunes are won or lost based upon expectations. Post a scorecard of important business measurements and make sure you consistently communicate the reasons for their importance. Driving positive business results through goal attainment is both rewarding and contagious for all concerned.
Incentive-based compensation - Once you "blueprint" the plan, scout the competition, and implement the strategy via performance objectives, you have naturally created an incentive opportunity to drive results. This is self-policing and intuitive toward results. Make sure extraordinary performance pays extraordinary rewards to the employee and you will watch your team bond and grow.
Next week: Hiring and Compensating for Success (Part Three of a Three-Part Series) - Benefit Options
Questions or comments? Contact Mike Farley at email@example.com.