Business
Compensation doesn’t have to be that necessary evil you throw over to HR. When done right, tt can actually be a tool that you can use to align and win together as an organization. Today, we broke down the conversation on compensation with my good buddy who also happens to be ProfitWorks’ co-founder, Tom Bouwer. In this episode, he talks about how crucial it is to have a philosophy around compensation, setting incentive pools, cost of living adjustments, and striking the balance between protecting the company from paying too much and making it meaningful for employees.1:13 What entrepreneurs get wrong about compensation7:54 How a cost of living adjustment is different from a raise12:14 A better way to give bonuses25:05 Tom talks about how to effectively get employees to bring issues out on the table29:01 Incentive and commission plans are not there to manage your people, they are there to change behavior36:12 Tom gives his take on paying for objectives42:15 The importance of teaching your employees the business of business46:44 A profit-based incentive plan is a great way for people to earn more and to make it more impactful48:21 Tom’s passionate plea to entrepreneurs“Do not overcomplicate compensation. Have a philosophy and use it as a tool for accountability, engagement in your culture, and your overall purpose for the organization.”GET IN TOUCH:MARK LEARY: www.linkedin.com/in/markhlearywww.leary.ccTOM BOUWERhttps://www.profitworksllc.com/https://www.linkedin.com/in/tombouwer/Production credit:Engineering / Post-Production: Jim McCarthyArt / Design: Immanuel Ahiable