money

In my previous post I laid out a system to define incentives. The question still needs to be asked: when should I offer incentives?

To answer that you'll have to ask more questions. The biggest: How will offering this incentive affect my employees and the business? Think of the positive and negative effects. Sometimes the negative outweighs any gains you might get.

Another big question: What do my employees want as an incentive? This does not get asked enough. Money is not always the answer! The most fun incentive I ever had was a competition I had with my first sales manager. Whichever one of us went farther above what was expected of us in terms of cold calls and appointments would get lunch at a restaurant compliments of that month's loser.

One last major question to answer: how will this affect anyone who doesn't have an incentive? Team Go For The Bonus might be surrounded by Coworkers Willing To Sabotage Everything. If you have to explain the bonuses and how people were chosen, do so. Let everyone know what's going on and why.Read more

In reply to my post on employees, management, and communication going up and down a company hierarchy, Mike asked me about compensation and incentives:

"It seems to me that if Management expects certain Actions from Employees, they should create a incentive structure that rewards Employees for doing the Actions. "

I've heard and been part of numerous debates on the good and bad of pure hourly/salary compensation and offering incentives and bonuses based on performance. Incentives make sense if you can have the following happen:

1) Make sure the incentives are tied to something measurable. If there is any doubt as to whether or not the goal was achieved, it's more likely to cause an argument than motivate employees.

2) Make sure the goal is clear. 20% increase in site traffic within 8 weeks. $50,000 in new business by the end of the month. Simple and clear works.Read more

For everyone not born filthy stinkin’ rich, which is just about everyone, we have to trade our time to do things so we live or we die (like earn money to pay for food, clothes, shelter, and on and on).

Let’s say we’re using time to make money, and this is a natural part of life. My point was if someone offered me more time or more money I’d take the time. Trent Hamm’s comment got me thinking about trading time and money and the parallel between trying to accumulate more time/money.

A lot of people look at earning more money as an important aspect of life. It is to a certain point, no doubt. Here’s what I ask you: what are you willing to pay for all this money? There’s a cost associated with everything in life, and even if you’re willing to pay the price there’s no guarantee you’ll reach your goal. The few who accumulate all that money get to reap the rewards of it.Read more

If you asked me to choose between time and money, I'd take the time and run.

One of my friends on Facebook posted about wishing she were independently wealthy. A lot of people want to have more than enough money. I'm no different. What I find interesting is how much people focus on having money to do things.

It doesn't make sense to me. Look, I understand it's not about having money, it's about the options which open up when you have money. Let me ask a question: if you made enough to live on and have something extra, what can you not do?

I bet you're creating a list in your head right now. Write it down. Think about it a minute.

Then go to Google and search for people who do each of those things in their life, every single day.

Now here's where you might be thinking, "Jonathan, I can't do all these things if I need to work, I just need the money."

If you can't do them in your life while you're working, then you're looking at one of two things. Either (1) you are not willing to do what you'd need to in order to do all these things, or (2) your list is too damn long. If it's #2, then what you need is more time.Read more

If there is one book I wish I could have read in 2004, when I graduated from college, it’s Ramit Sethi’s recently published I Will Teach You To Be Rich. Boy would I have screwed up a lot less if I had his advice then.

Of course, like most people my age I fully expect to start a fantastic business which will make me filthy stinkin’ rich by my 40’s. Money will be flowing from my pockets. Now, if I expect that scenario, why would I recommend a book on money management if I’m going to be filthy stinkin’ rich in 15 years?

Because it may not happen.

Or if you believe the experts, the odds are stacked against me. Big time.

I have a soon-to-be wife to think about, and the children we’re going to have are going to depend on me. If I want to do everything I can for them and myself financially, then I should have a plan. Sethi’s book gave me some excellent insight into further developing my plan.Read more