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Profit over People OR People over Profit

Tue, 07/28/2015 - 16:08
When people and profits work together - magic happens!
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"Profit over People  OR  People over Profit?"

- Long standing debate


People Profits Principle #46

 

When People and Profits work together - magic happens!


People Profits rejects this is an "either - or" discussion:
 

  • Employees want a financially stable company
  • They also want a company that is "going somewhere"
  • They want to be paid a fair wage for what they do.
  • They want to be paid more as their value to the organization increases. 
There are companies that obliterate this discussion, they:
 
  • Don't pay small raises based on "time served"
  • Do base pay on objective value and performance of the employee
  • Do increase pay for increased value and performance
  • Do relate incentives directly to employee responsibilities and performance
  • Do provide benefits related directly to employee needs/wants
When you align the above with your business strategy and model
the employees will drive profitability.


Case study: A service company was having a hard time getting employees to perform certain highly profitable work. When a compensation plan was developed just for this work, employees lined up to do the work, revenues soared and the profit margin went up by 40%. This also helped retain our employees as no other company could pay them what we were paying them.    

 
When you look at this picture, ask yourself a question.

Is she the owner or an employee? 

 


You are right, you don't know - which is a wonderful thing!!
Request a no cost - no hassle consultation now. 
 
We look forward to talking with you!       Website: http://peopleprofits.com

Cell: 405-508-1059                                Email: Clark.Ingram@PeopleProfits.com
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People Profits is redefining HR - by rejecting the mindset that created HR. We assist our clients by injecting fundamental business and financial principles into the HR function. HR is transformed from a COST center into a PROFIT center and your HR department into organizational heroes. Our expertise is based on developing a Human Capital Strategy and implementing our proprietary systems and processes that will increase the value of your greatest asset and your BOTTOM LINE.

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