Valuation & Optimization
15Aug 2019
Aug 15, 2019

Valuation & Optimization – Productivity Pyramid

Keep your top A performers! Employee Retention.

Valuation & Optimization – Productivity Pyramid. 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. It’s important to try and keep your high-performing employees as they know the job and they can do it correctly. If they were fired, someone would have to learn a whole new job, which could take a long time. That’s why it’s so important that businesses focus on employee retention and HR to make sure all staff are content. Instead of hiring someone to focus on these things, some companies prefer to use peo services instead. If you’re wondering “what is a peo service?”, you might want to learn more about it. Businesses are using peo to help them be more productive with their recruitment and retention. A peo service would allow businesses to complete all of these essential tasks without having to hire more people. This increases productivity. By using peo, businesses could ensure that their staff are receiving good benefits, keeping them at the company.

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 company productivity by over 400% and help you get those A performers.

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 the rewards system are:

A. Quantifiable

B. Timely

C. Performance-based

D. Fair

E. All participate commensurate to their responsibilities and achievements

What is the productivity change for an annual employee review system? I’ve known several speakers that indicate that an annual review has zero or negative impact on employee productivity.

Valuation & Optimization – Productivity Pyramid

A CEO of an Employee Assistance Program (EAP), reported that 20%-25% of all people are having some life issue right now. That means many employees are currently struggling with a life issue. Life issues could include: financial problems, a sick child, sick parents, divorce, close relative untimely death, abuse, etc. If the workplace can help employees cope with these life difficulties, productivity will increase.

Things to think about as you begin to think about holding onto those A performers.

Dale Richards Valuation & Optimization Presentation Scores High Marks in Milwaukee. Jim Van Hecke loved the Productivity Pyramid TM, Coaching techniques and the 80/20 Customer Gold Program TM to help his business immediately. The Vistage members learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.


Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 28+ 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 to learn more about Dale and business valuation services.

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