Benefiting from ‘Positive Peer Pressure’

Your biggest challenge in building a Critical Mass Business that runs smoothly without you will always be… EMPLOYEES! And it isn’t just ONE challenge!

Nope, you’ll constantly face issues with recruiting, hiring, orienting, training, evaluating and yes, (sadly) firing people! This stuff never stops!

NOTE: I’ll modestly mention here (cough-cough) my online SFS: ‘Hiring the Very Best’ LIVE seminar. After all, when you hire the Very Best People many (but not all) of the above problems simply… go away!

But let’s chat about compensating/motivating your employees. (The two really do go hand in hand.) True, the Very Best People (VBP) will stay with you long-term based mostly on emotional factors. Even so, compensation can be a great tool in motivating your people!

I recently shared the vision of an Employee Efficiency Bonus (EEB) HERE. Simply set up a reward (and penalty) system for each employee. When a worker excels they’re rewarded with public recognition and big bonuses! If an employee slacks off or screws up… they suffer. This is where you say, “Gosh Steve, your EEB concept sort of sounds like… real life!”

YES! An EEB can be wonderful! Now instead of you constantly ‘negotiating’ pay raises with each employee you get to say, “Charlie, you want a raise? GREAT! With our EEB you decide how much your raise will be… every pay period! Let me show you how it works…” (By the way, the Very Best People LOVE an EEB!) But there can be a downside…

Commission based compensation to INDIVIDUALS can quickly result in suspicious bickering, nasty backbiting and constant competitive scheming. (This is also true with contests that crown JUST one employee as the ‘winner’!) This is the exact opposite of the ‘team culture’ you want! So I recommend many cleaning and restoration contractors should…

Set up a shared ‘Employee Efficiency Bonus Pool’ (EEBP) for each TEAM that works together.

I call this concept ‘Shared Accountability’. Now the boneheaded mistakes of one worker will subtract from the shared EEBP of other employees in their team! The result? ‘Positive Peer Pressure’ as in, “Bill, I’m tired of you losing tools that get deducted from our shared Employee Efficiency Team Bonus. You’re costing our team money!” (This is so much better than you constantly screaming at your workers!)

NOTE: The phrase ‘Peer Pressure’ has a negative connotation with school kids being pressured by their peers to engage in destructive and illegal behavior. But remember, an EEBP should be positive! For example…

Your shared EEBP should also REWARD your staff. For example, establish a reasonable target time for the assigned team to finish a large commercial contract or big restoration loss. Then when your employees coordinate efficiently everyone (including you!) shares in the extra profits! I promise you’ll see some ‘Positive Peer Pressure’ when the team focuses on ‘team efficiency’!

NOTE: Be sure to give continuous EEBP feedback and updates on a team’s EEBP results. (At the very least weekly in your company staff meeting.)

WARNING: Have a labor attorney review and approve ANY changes in your employee compensation plans! 

Want more employee ideas? Check out my online SFS: ‘Hiring the Very Best’! LIVE seminar HERE. Or do you need some shoulders to cry on? Then join our Strategies for Success: Growing Your Business Facebook Group! You’ll be welcome even if you haven’t (yet!) graduated from SFS Training!

Steve

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