The rule of thumb is if you lose an A performer, it takes you 3 years of salary to get them back. Having goals, accountability, and rewards for your team ensures that you keep your A performers because it’s a huge expense to get another one back.
A productivity improvement program (“Productivity PyramidTM”) with a pay for performance program where there are company and employee goals with monthly coaching sessions should be implemented. This method can raise a company productivity by over 400%, and help you get those A performers.
Value Principles & Productivity Pyramid were Matt’ Warnock’s, Ridgecrest Herbals, Salt Lake City, UT takeaways from Dale Richards Valuation Presentation on key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operationally and Strategically.
If monthly coaching sessions are held, how easy do you think it would be to hold an employee accountable? Much easier than an annual review.
The important parts of rewards system are:
C. Performance based
E. All participate commensurate to their responsibilities and achievements
A full discussion of the productivity pyramid is included in my book Business Valuation Principles.
Learn more about Business Valuation Principles by Dale S Richards https://successbiznow.com/books/business-valuation-principles-by-dale-richards/
ABOUT DALE S. RICHARDS:
Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit www.successbiznow.com to learn more about Dale and business valuation services.
#coaching #employee #productivity