Alex Freytag is an author, an expert in EOS implementation, and the founder of Profit Works. He’s also an all-around great guy whose passion is helping business owners get what they want from their businesses and life. We recently had a discussion on compensation in the workplace.
The thing about compensation is that it encompasses much more, such as retention, attraction, and affordability. Alex places an emphasis on the “we” numbers and being transparent to an extent. He also understands that intrinsic motivators go further and benefit everyone more than extrinsic motivators.
“We” Numbers
“We” numbers are how you measure the size of your business financially. There are three “we” numbers that people in a company need to understand.
You must know what three “we” numbers are and how to talk about them. Then, plan to talk about them every single quarter until everyone at the company or at least in leadership understands how they affect the business.
Intrinsic vs. Extrinsic Motivators
Leaders in a company can eradicate entitlement with intrinsic motivators before offering extrinsic motivators.
Intrinsic - Intrinsic motivators have to be in place before extrinsic ones. An intrinsic motivator is a goal set that one wants to accomplish. If the goal is accomplished, they may earn a bonus for a job well done. However, if they don’t accomplish the goal, they don’t get rewarded.
Extrinsic - An extrinsic motivator should come last and needs to be carefully planned put. An example is an end-of-the-year bonus that everyone receives and can expect regardless of how well the company did that year. The employees are not enticed to work hard for it because they expect to get the bonus.
Alex is an intelligent resource for correcting employee morale and company financials. Refer to his new book Profit Works to learn more.
If you want to learn more about You’re Doing it Wrong, check out https://www.leary.cc/podcasts/ydw082!
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