Imagine being a business owner. One employee can build your product in two hours, and you make $20 in profit.

Next imagine that you develop a premium product. It takes four hours to build, and you make $22 in profit. Do you have your employees build the premium product?

No, because there isn’t enough profit in that premium product to make it worth it.

Now imagine being an employee. You show up and do your job to the best of your ability and often exceed expectations. You’re a go-getter.

You receive a 3.5% merit increase.

You go to lunch with Joe who is not a go-getter. He is average at best and is just doing the minimum to get by at work. You are constantly fixing his mistakes, and he isn’t going to change because management isn’t asking him to.

Joe tells you he received a 3% merit increase.

You are angry and frustrated. You realize there isn’t enough reward to make it worth it to be a go-getter. So, you stop.

Are you an employer and wondering why your employees aren’t as productive? Do you find yourself saying, “They just don’t want to work.”

Look in the mirror. You get what you pay for.

#payforperformance #compensation #rewards #humanresources #leadership