523 – 5 Tips On How To Pay Better To Increase Results For Your Business - James Schramko SuperFast Business Online Business Coaching
Summary: Video highlights:<br> 00:14 – When there’s ambiguity…<br><br> 00:29 – Don’t obsess on THIS<br><br> 01:01 – Where to tie the impact of the pay<br><br> 01:38 – How to remove conflict<br><br> 01:54 – To have stability<br> Need help in formulating a better pay plan? James can help you. Get coaching <a href="https://www.superfastbusiness.com/" target="_blank">HERE</a><br> <br> <a title="Download PDFs" href="https://superfastbusiness.leadpages.co/leadbox/148c5d033f72a2%3A9446bc637/5811414014885888/" target="_blank"> Download the PDF transcription and 5 Rules for Formulating a Pay Plan</a><br> <br> Transcription:<br> James Schramko here, and today’s tip is around how you pay people in your business. Now, I’ve got five rules that will make things easier for you when you’re coming out with a pay plan.<br> Simplicity is key<br><br> The first rule is it must be simple. It’s got to be simple to understand because if there is any ambiguity, this can cause you, or your employee or contractor a massive heartache and loss of energy.<br> <a href="http://twitter.com/home/?status=%20Ambiguity%20causes%20massive%20heartache.%20via%20@SFBcom%20http://lnx2.co/2Yt" target="_blank"><br> <br> “Ambiguity causes massive heartache.”<br> CLICK TO TWEET<br> <br> </a><br> <a href="http://www.superfastbusiness.com/business/523-5-tips-on-how-to-pay-better-to-increase-results-for-your-business"></a>Reward what you want<br><br> Two, you’ve got to reward the results you want. There’s no point paying for something that you don’t want. A lot of people obsess about paying an hourly rate, but what you’re buying is one hour. It doesn’t necessarily stipulate a particular result that you’d like to get for that hour. <br> <a href="http://twitter.com/home/?status=%20Why%20pay%20for%20something%20you%20don't%20want?%20via%20@SFBcom%20http://lnx2.co/2Yt" target="_blank"><br> <br> “Why pay for something you don’t want?”<br> CLICK TO TWEET<br> <br> </a><br> So have a look at other ways you might be able to pay people. Maybe you can pay per project. That way, they can complete the project in whatever time they like. But you get a specific result. Always reward what you want, and this is especially important if you have sales people.<br> <a href="http://www.superfastbusiness.com/business/523-5-tips-on-how-to-pay-better-to-increase-results-for-your-business"></a>Pay for ability<br><br> The third rule is that the result you want has to be able to be impacted by the person who is impacted by the pay plan. There’s no point having a team budget percentage payment that the team members can’t actually impact. It’s not their fault if something happens to the business outside of their control. So when you actually pay them on that, that can be very disenchanting and they can lose motivation. Again, the more directly you can tie the impact of the pay to the ability to the employee to impact that pay, then that is better.<br> Have a fair pay plan<br><br> Fourth, it really should be fair. Anything that is out of alignment for too long won’t continue. If you don’t pay the right amount, or if you pay too much, one party is going to be upset and it’s going to lead to conflict. So to remove conflict, have a fair pay plan.<br> Sustain rewards<br><br> And number five is ideally, you can sustain this reward mechanism for some time. That way, you have stability, you build up loyalty, you have consistency, and a lot of people who are contracting to you or they’re basically employed to you are going to look for that stability. It’s going to provide a nice bedrock to have that employee-contractor relationship.<br> So hopefully, you’ve enjoyed these five tips on how to pay better and get a better result in your business. If you do this,
