The secret to a successful business, happy employees and a prosperous future
It’s money.
I know what you’re thinking: “Of course it’s money. Everyone likes money.” But it’s more complex than that. Just a wee bit more, not rocket-surgery complex.
Say you start a business. You make it far enough that you need people to do some of the work for you. Great! Now, there are two paths you can take, each with a wildly divergent outcome.
More is Less
The first path is the easiest one, as well as the one most businesses take: pay a lot of people a little money. You’re in business to make money, not spend it, after all. In your search for employees, you’ll find a lot of low-hanging fruit, though every once in a while you’ll get a real gem who just enjoys doing the work. At this point, there’s still time to make things right. Reward these people with more money and they’ll continue to be happy. Given the path you chose, however, I will assume you won’t.
Soon you have a company full of mediocrity, with a sprinkle of awesomeness to keep things from falling apart. Eventually the awesome employees will realize that they work harder and do a better job than the mediocre ones, but they make roughly the same wage. They start feeling disgruntled, then begin vocalizing their frustrations, and eventually whatever positive culture you had (if you had any) disintegrates when they jump ship.
You’ll still be able to get a rockstar here and there, sure, but now with the culture gone and even more mediocre people than before (that you had to hire because the previous rockstars left), they won’t last long at all. Rinse, repeat, until your staff is nothing but average or worse.
Does that sound like a company you want to work for? Does that sound like a company you want to do business with? If you said “yes” to either of the previous questions, think about the last company you dealt with that really pissed you off - your cable or phone company, for example. What made you upset about the interaction? Keep your answer in the back of your brain and read through the first path again. Odds are the company you had in mind decided to go down this road.
The less money you spend on each person, the more people you can employ; more people means more man-hours; more man-hours means more work being performed; more work performed means more money…right?
I understand the formula for choosing this route. I’m simply saying that it is inherently and irrevocably flawed.
Less is More
The second path is the one less traveled, but only because it requires more capital than the first: pay a few people a lot of money. You’re still in business to make money, yes? The most-skilled or talented person for the job will consistently surpass someone who is adequate, both in terms of quality and quantity. An exceptionally skilled person is easily capable of performing the work volume of two to three average people.
And here’s the kicker: you won’t need to pay this person two to three times as much as a single mediocre employee.
So the initial higher cost of a exceptional employee pays off almost immediately. Really makes the first path seem like a dead end, doesn’t it?
Let’s recap this concept. If you offer better wages, you will attract employees of a much higher caliber; if your employees are above average, their work will be of superior quality; better quality means more customers; more customers means more money for you; more money for you means you can continue the cycle, hiring more of those rockstars and making even more money.
Bring it Home
If you have any doubts at this point, remind yourself of why people have jobs in the first place. We need money for food, money for shelter, money for things we need and things we want. When you don’t have enough money to get the things you want, you will be less happy. When you don’t have enough money to get the things you need, it will prove very difficult for you to be happy at all.
The first path leads to either destruction or obscurity. The second path leads to fast growth, prosperity, healthy and happy employees who give you their best.
Which path will you take?
