Join Eddie Davila for an in-depth discussion in this video Measuring, motivating, and promoting employees, part of Business Foundations.
- The best companies want the best people. They will fight for them. And once hired, the company is looking to get the very best that person has to offer. That means finding their strengths, identifying their weaknesses, providing opportunities to develop their skills, and, as the person grows, putting that person into leadership positions. That will both help the company grow, and also keep the employee satisfied. Big or small, companies want to measure the performance of their employees, and the bigger the company, the more the company will rely on data.
But which data? What should a company measure, and why do companies measure? Companies measure because they need to know areas of strength. From those strong people and groups, they can learn about success and pass along that knowledge to others in the company. Companies need to find weaknesses so they can fire people. Just kidding. Firing people is expensive. There's no guarantee the next person hired will be any better. So finding weaknesses helps the company know what types of help to give those that are struggling.
In a company, we are all part of a corporate family, and as such, we need to help those in need. Think of it this way: you hired them, so they are your responsibility. Another reason companies measure is to motivate employees. Think about a time someone said they were going to measure your individual output. Did you up your game? Didn't you start noticing details? Perhaps you even started getting creative about how to solve problems. Focused and creative employees, companies love that.
But remember good measurements will motivate good behavior. Bad measurements might motivate bad behavior. And while the performance metrics might motivate employees temporarily, they won't stay motivated unless they are rewarded for that excellent output. So the best employees will expect money, promotions, awards, job security, and corporate benefits for continued excellence. All of this is not easy, though.
Companies face all sorts of challenges in measuring and motivating. Like what? Well, coming up with good performance metrics is difficult. Some things, like attitude, customer service, and work ethic are difficult to measure. Also, sometimes it's difficult to evaluate individuals when they work in teams. Even a single bad performer on a team could bring the whole team down. And even if a company can identify the best workers, it's hard to reward them all.
Rewards must be doled out in a fair and legal manner. Also, while one employee may want more money, another may prefer a long-term contract or perhaps a promotion. And let's not forget that we also need to keep under-performing employees motivated, providing these employees feedback, giving them advice, and getting them assistance requires excellent people skills. If you're too harsh, they may become timid. They may avoid making decisions and taking risks.
On the other hand, if a manager is too nice, the employee may believe that there's no need to change their behavior. So let's take a little self quiz. Are you a good employee? What are your strengths? Can you prove it to me with numbers? Based on your strengths, how can you help a company grow? How about weaknesses? What types of training and support would you like from your company? Finally, if you prove yourself successful in your job, what would you expect in return? For many of us, coming up with answers to all of those questions can be tough.
Now imagine being responsible for coming up with answers to every question for every employee in your company. If you can do that, and do it well, then you're doing what the very best companies in the world do.
He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Understanding business goals, stakeholders, and resources
- Developing a product or service
- Selling a product or service
- Raising capital
- Managing employees
- Managing customer data
- Understanding finances
- Managing resources
- Understanding economics