Serving Business Owners Nationwide
Over the past few months, the business community has experienced a flip in talent demand unlike anything it has ever seen before. In January, there were more jobs available than people to fill them. The scarcity of skilled, educated labor was especially pronounced. Talented people were in demand and could essentially name their price when making a career move. Then COVID happened. In a period of approximately 90 days,…
Last week I wrote about how the COVID economy has brought business leaders face to face with the flaws in their pay strategies. That experience has left many wondering what should happen going forward—and whether incentive plans should play a larger or a smaller role in their rewards approach. I asked the question: Should you even offer incentives in an economy as uncertain as this one? The answer was…
Chances are, the COVID economy has brought you face to face with flaws in your pay strategy. When the lockdown hit, compensation became the enemy of cash flow and (perhaps) the cause of layoffs. Its “expensiveness” became a serious problem virtually overnight. Now you are most likely wondering what should happen going forward—and specifically whether incentive plans should play a larger or a smaller role in your rewards approach….
Okay, first things first. I suppose it might seem odd and even a bit self-serving for someone who is a principal in a compensation design firm to offer advice about engaging a pay consultant. However, given the hundreds of companies that have engaged VisionLink over the past 20 years, the reality is I have much “real life” experience with those who were ready for a pay consultant when they…
A few years ago, Clayton M. Christensen (the late Harvard Business School professor and author) introduced a concept he called the “Theory of Jobs to be Done.” This is how he explained it: “When we buy a product, we essentially ‘hire’ something to get a job done. If it does the job well, when we are confronted with the same job, we hire that same product again. And if…
Chances are, you’re looking at your P&L these days and noticing just how large the compensation number is. In fact, it’s likely created a pit in your stomach—probably the size of a boulder. Bottom line, all logic says you need to lower than expense, no matter what. Well, not so fast. We suggest you take a deep breath before doing anything too drastic. In truth, treating pay strictly as…
To state the obvious, uncertainty is the only certainty for the foreseeable future. It’s an unusual time and I know we’re all hoping for the best. Unfortunately, the business forecast (not to mention “real-life”) suggests we’re headed for significant economic turbulence. So, this may be a good time to talk about how to approach your compensation strategy should a recession result from current conditions. In reality, these principles apply…
You have hired good people. You believe your business model is sound. Your strategy is solid. You think you pay a “fair” wage. You allow people flexible hours and they can work from home when necessary. They can take as many vacation days as they want as long as their work gets done and they participate in an above average benefits package, including some things your competitors don’t offer….
“Tis the season” to figure out how much bonus your employees are going to earn this year, is it not? For some of you, that’s not a big deal. You have a formula and your people will be paid a benefit accordingly. However, I suspect others of you are lying awake at night trying to figure out how much you’re going to share. You don’t have a formula, your…
Are all profits created equal? No, they are not. Some are good and some are bad. Years ago, in his book, The Ultimate Question, Fred Reichheld made the distinction: “Too many companies these days can’t tell the difference between good profits and bad. As a result, they are getting hooked on bad profits. Whenever a customer feels misled, mistreated, ignored, or coerced, then profits from that customer are bad….
Tom Jordan is a Certified Exit Planning Advisor (CEPA), Certified Value Builder Advisor (CVBA), and Master of Science in Financial Services (MSFS). He is the published author of How to Exit Your Business With No Regrets and the creator of the Exit Readiness Trilogy™.
