Scenario: "Dude, the more we pay our employees, the more we boost their performance. Billions and Porsches, here we come! Yay!"
It's a common uh-freakin'-oh mindset most well-intentioned business-builders make:
- Manager Matty: Dude, we're paying Sally $30/hr. Imagine if we pay her $60/hr!
- Manager Megan: Oh-fo-shizzle! That means her performance will double. Double!
- Manager Matty: Ding! Ding! Ding! And since we get a +$3 ROI from her, that means we'll increase profits triple-fold.
- Manager Megan: We'll make billions!
- Manager Matty: Yay! Yay!
True-Badass Superstars Will Perform Regardless of Compensation
Peep this phenomenon:- Give a mop to the best curb-painter in the world, and you'll see amazingly beautiful floors.
- Put him in customer service, and you'll see amazingly enthusiastic customers.
- Place him in front of a math class, and you'll see kids kicking booty.
They will do everything within their power to build a great company, not because of what they will 'get' for it, but because they simply cannot imagine settling for anything less. The right people will do the right things and deliver the best results they’re capable of, regardless of the incentive system.Fo-shizzle.
Just Think: The Absurdity of Baseball Salaries
Compare the salaries of the Oakland A's roster with the New York Yankees' over the last five years.- The Yankees paid their staff: ~ $1 billion.
- The A's: ~ $350 million.
"What's the Purpose of Money, Then?! Ahh!"
It's just this -- simple and sweet, inspired by Collins's research: to attract and retain your employees/players/partners/vendors/contractors/etc. Yes, if: (1) you're not compensating your people well, or (2) your competitors are upping you on bigger salaries: They'll take off -- faster than Britney Spears's credibility. The two keys then:- Ensure every superstar like what you're paying them.
- Drop the notion that paying them more will boost performance.
"So how the %#&@ do I motivate my people?"
You can't.
The right people are self-motivated.
If you let them, they'll shine higher than a mutha-$@!#%^-eagle.
The three-tip step:
- Attract as many of those people as you can.
- Ensure they're happy with their compensation.
- Prepare to see ridiculously sexy results.
Say it with us now:
Money doesn't motivate Sally. Sally motivates Sally.
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Posted @ 01:52 PM on December 03, 2006
[...] Why Motivating People with Money Sucks - maybe not for motivation, but for attention and employment retention I think it’s essential. Otherwise, your self-starters start looking elsewhere. [...]