business funding

In the 1980s, the emphasis was on personal rewards. This was because highly motivated people could transform organizations and societies. The film features Gordon Gekko, a Wall Street banker who stated that greed was good. However, the 90’s saw companies become bankrupted and traumatized by inappropriately using remuneration to motivate. However, major corporate success stories have been built on reward-based systems of remuneration. Phones4U and Allied Dunbar are two examples of such a system.

Barings Bank was known for giving individual traders bonuses worth millions of dollars, but these motivated people did not achieve the company’s long-term goals. Even if an individual’s reward system was based on the right performance indicators and the organization’s success, and they are rewarded accordingly, there could still be problems due to the large gap between the salaries paid to senior managers and middle management. An organization that rewards 10 people and demotivates them all may not have the best payment system.

invoice financing

Wise organizations seek to motivate and reward all employees so that they act with energy to promote the corporation’s long-term and short-term interests and feel fair treated. But, it is important to establish a link between what they are being rewarded for and what they can do to effect the desired outcome.

Business Leadership and People Management Growth Skills

That is what a wise organization does:

  • The individual manager can act in their own best interests.
  • Managers are accountable to people and not organizations. They want to please their superiors, or, failing that, their peers.
  • Managers are driven to succeed and will seek out those tasks that they feel they can do well at. They tend to favor the short-term over the long-term.

This means that organizations should do some work before they rely on a remuneration system to improve performance or behavior. The management system and the organization system should be balanced with the remuneration system. To create a rewarding structure that works, there are five key conditions.

  1. Measurement: You won’t get it if you don’t measure. There are many measurement systems, but Balanced Scorecard is the most well-known. It sets multiple goals and is used by Tesco.
  2. Monitoring: Managers can be given signals by their managers that the performance measures don’t matter, or that they are only being reviewed at the end of the year.
  3. Control over the tools: The organization must make sure that the individual does not become dependent on external factors to reach the performance goals. This is the “how” part of the equation.
  4. Consistency: Ensuring short-term organizational factors do not over-influence or distract managers from their true objective. Organizations must ensure that their own design, whether it is bureaucratic or informal, is appropriate for the tasks being assigned to them.
  5. Strategy and reward in line An organization can have a remuneration system even if it has a somewhat muddled strategy if the strategy and the balanced scorecard are used to resolve organizational and managerial disputes. Only then can the organization be put under pressure to improve its structure, strategy, and remuneration system.

These 5 preconditions are the basis of a list of 10 elements that an effective remuneration/reward structure must meet.

equipment financing
  1. Assist the business strategy
  2. Encourage the behavior you want
  3. Reward relevant performance
  4. Be fair
  5. Make sure you are substantial
  6. Be tax efficient
  7. You must be prompt (The reward should occur within a few hours of the achievement).
  8. You can also include non-financial incentives (Recognition is as important as cash).
  9. Keep your cool (A bonus that is lost due to missing a target shouldn’t be refunded, whereas a salary increment should be delayed until the target has been reached).
  10. Stay crystal clear

Three Lessons from the Forest on Meetings

There are many lessons to be learned. These are three lessons learned from an experience in Sequoia National Forest about how to have effective meetings.

1) Giant Sequoias

These trees are living proof that not all things can be done in a single day. Yes, it is important to be able to act quickly. We must do more with less. We must move faster than chaos.We also have to be appropriate. Rushing to solve certain issues can lead to false solutions. A group may create an annual plan and then discover that it does not reflect real market conditions, organizational limitations, or individual support. It is useless and ineffective.

A powerful group may decide to ignore the opinions of others. The situation gets worse. Sometimes, the side that is neglected retaliates with so much force that it loses its status. Better: Make sure all factors are considered when making plans and making decisions. Hire a facilitator to help you achieve lasting results in a meeting that is intended to resolve major issues.

2) A Bear Cub

The cub behaved just like a toddler while mama bear went about her business of buying groceries at a supermarket. Mama bear was not pleased with the cub’s play. She fell from rocks and climbed onto logs. Mama bear continued to work, eating plants and gathering food throughout all this play. She continued to eat until the cub ran towards me. Mama bear then looked up and growled at the cub before running after it. (I assume she did that because I ran away from Mama Bear’s growl. What’s the point?

Sometimes, we have to accept some disorder as part of our growth. It’s part exploring the world. It is part of letting people be who they are. When threats are presented, we must take control. We may just need to growl in order to restore order.

3) Mustang Clover

Mustang Clover patches are found in the Sierra Nevada Mountains in spring. As you walk by these tiny flowers, which are usually less than half an in diameter, they look almost like small pink dots. If you stop and examine closely, you’ll discover a work of art of exquisite beauty. What is the point? Are you taking time to pay attention to important details? Others may just be pleasant reminders of the joys of life. Some may be fun reminders of how wonderful life can be. Others could be indicators of the health and well-being of your company.

merhant cash advance

Three Myths that Ruin Meetings

These myths have resulted in companies losing billions of dollars in payroll money.

Myth #1) Structure spoils spontaneity.

A two-day-long catastrophe that cost more than $40,000. I was there once. Thirty-three people spent the first hour looking for an issue, and then spent 15 hours debating over unsolvable issues. I asked the manager, who called the meeting, where was the agenda? I asked the manager who called the meeting, “Where’s the agenda?” He replied, “I didn’t want to ruin the spontaneity by imposing any structure.”

  • Reality: We would not build buildings without blueprints if spontaneity was a sound business practice. No smart business leader can work without a plan.
  • The Solution: First, set a goal and then create an agenda. This agenda should be clear, concise, and specific enough that another person could use it to direct the meeting towards achieving the goal.

Myth #2: I shouldn’t talk at all, because it’s me and my meeting.

Some meetings can be run in medieval court style. The chairperson is seated on a verbal podium while the others sit in silence. This is the big talker’s excuse for not addressing the subject. Reality: You’re probably working too hard if you are the only one speaking. You should also realize that many people avoid long monologues by taking a vacation to send their thoughts. This means that no one is listening to you because they are too busy daydreaming, doodleing, or dreaming. The Solution: Use email or memos to convey large amounts of information. Next, call a meeting using participant-driven activities that reinforce or test comprehension.

Myth #3: Meetings can be free.

Meetings are usually paid with soft money. It’s money that has been used on wages. A purchase request is not required. A budget does not need to be approved. To call a meeting, all that is required is to make an appointment.

  • Reality: Meetings can be very costly. Meetings consume people’s time and are the most expensive part of running a business. Bad meetings can lead to the loss of the most valuable resource in a company: the time that employees spend earning a profit.
  • The Fix: Make meetings profitable. Meetings are not a company picnic, but a business activity.

Three Steps to Make Employees Happy at Work and Stop the Absence

Employers and managers should be aware that workplace absences can cause financial loss, incontinence, and upset to customers. As we all know, not every day that is taken off work is due to sickness. Many employees take a sick day because they are unhappy with their work or have low morale.

equipment financing

Managers and employers have to find ways to make employees happier at work. People who are happy at work are more likely to be productive and less likely take a day off if they have a stuffy nose. Many bosses believe that increasing the salary, job security and working conditions are the best ways to solve problems. It’s not, and it can be difficult to attain.

Employers and supervisors need to be more aware of their employees’ emotional needs in order to find out what motivates them. It is easier than gaining more job security or increasing your salary, but it is not easy. There are three things you can do to reduce absence.

First, choose the right person to do the job. It is important to be better at selecting and interviewing people. It is worth taking more time to examine it. Pay more attention the application’s details. Human side is more important than their experience or qualifications. Learn to get to know them. Find out what makes people happy, how they interact with others, and what motivates them. You should make sure that they understand what you’re doing and that the job is right for them.

Second, believe in your employees. You can only trust your people if you have interviewed and selected the right person to do the job. Your body language, tone of voice, and body language should always show that you trust your employees. You believe your people cannot be trusted and that they won’t make the right decision. They’ll show up late and get home early, that’s what they will do. You can trust them to do their jobs well and make good decisions. If you are a believer that they will give you fair work, it’s more likely that you’ll get what you want.

There is no way to know if it will work, but most employees are decent people. If you treat them like such, they are more likely be positive. You can motivate and reduce absenteeism by giving feedback to your employees and coaching them. This is where many managers and employers fail to communicate with their employees. They are unable to give feedback. Managers are often reluctant to tell their staff what they think about their employees’ work performance.

Employees want to know how well they do in their jobs. They want to know if it is going as planned or if there are ways they can improve. You can motivate your employees by giving them feedback about what is working well and what could be improved. Tell employees if you see an employee doing something that you like. Tell them if you find something that you don’t enjoy. It is important to do it quickly. Recognizing a job well done can be difficult six months later. If you don’t call someone’s attention immediately to something that you are unhappy about, they will assume it’s okay. You can either do it or not.

accounts receivable financing

They’ll either think you didn’t notice it or they won’t care. It’s best to do it privately. It’s strange that managers feel it’s acceptable to reprimand someone before their coworkers. Even the mildest of rebukes can have a negative impact on morale. Use “I” messages when you speak with the person. You can say things like, “I liked the way that you did this” or “I am unhappy about the way your reports are always late. I would like your thoughts on why.”

business financing

Avoid messages that say “You”, such as “You are doing great.” This can be seen as insincere or patronizing. Conflict, such as “You’re doing it all wrong”, can be caused by this. Morale may not be enough to solve the problem. Concentrate on just one or two things. Do not list all the attributes and misdemeanors. Be specific about job behavior and focus on the individual’s accomplishments. Employees will be happier if they feel that their manager or employer is fair and reasonable. Someone who praises but also tells them when they are unhappy about something.

This message goes to the bottom: If you want motivated employees, then make their work enjoyable and provide feedback. Give them the feeling that you are involved in the business. You can make your job more exciting by giving people more responsibility and assigning them projects. Training and developing them is another way to make it more enjoyable. It is important to give feedback regularly on how people are doing. We should be focusing on the good stuff and not on the bad. We should communicate regularly, both informally and formally, to meet their desire to feel involved. Staff could be involved in meetings that they may not attend.

Although these steps may take some time and thought, they will make a big difference in the employees’ attitude towards their work. Employees will be less likely to feel satisfied and happy at work if they aren’t.

Chris Sewell
Chris Sewell

Avigo Capital Solutions specializes in business lending solutions and offers capital allocation advisory to its clients. Do you want $10,000 to $6750,000 in business funding? See If You Pre-Qualify Here

small business lending