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How to Increase Your Income without Costing Your Company a Dime

by Glenn Shepard

May 25, 2010

 

 

Shreveport, LA

June 8

Mobile, AL

June 10

Call Rebecca at 1-800-538-4595 for any location.

 

“Any business owner that can’t survive losing everything, won’t survive anything.”

 

— Glenn Shepard

 

 

Ask Glenn column

 

Dear Glenn,

      Living in Florida, I've been through many hurricanes and  understand when employees must take care of their own homes and families before reporting back to work. 

      Should I be expecting my employees to come to work first regardless of what they have going on at home during a natural disaster?

    Hurricane season starts in June.

Rebecca in Jacksonville

    

Dear Rebecca,

    No, certainly not. Part of being Fair is being reasonable.

    The problem is sometimes the perception of a lack of consistency.

    One of my clients near New Orleans was able to keep his business running after Hurricane Katrina, but two of his employees lost their homes. He gave them several weeks off to regroup, but required that they call in each day to keep him in the loop.

     Another employee,  whose house was unaffected, whined that they got extra time off while she didn't.

     She claimed it was racial discrimination, and filed a complaint with the EEOC.

     While the case was dismissed and she was later fired for unrelated reasons, it illustrates the importance of understanding what it means to be consistent.

     Treating employees consistently does not mean treating everyone the same. It means treating everyone the same, within the same set of circumstances.

      Thanks for your question, and good luck with Hurricane Season. If I don't see another drop of rain for 20 years, it'll be too soon.

Glenn in Waterlogged Nashville, TN 

Glenn's Personal  Blog

Click on the gold pen for the latest videos of the Nashville flood

Like Dave Ramsey, I’m a huge proponent of merit-based pay.

 

My employees never get raises.

 

Instead, they get a base salary plus a year-end bonus tied to my company’s profitability for the year, and their contribution to that profitability.

 

People often ask how these annual bonuses can continually increase if we have a year when the company makes less than in the previous one, or loses money altogether.

 

The answer is "THEY DON’T".

 

The assumption that everyone’s income should increase every year – even when their company has a downturn – is one reason GM went bankrupt.

 

But there are still opportunities for individuals to increase their incomes even in recessionary years, and even when catastrophic events affect a business.

 

Good merit based compensation systems share cost savings with employees, and the opportunities for this are unlimited.

 

After the Nashville flood hit my business with 48 inches of water, 4 of our 5 phone lines were out for two weeks. Rebecca called the phone company to get for a credit for the time they were down, and discovered something amazing.

 

Even though thousands of Nashville homes and businesses were without service for weeks, no one had asked for a credit. The CSR explained that the code they used after Hurricane Katrina was NOLA (for New Orleans, Louisiana), but he’d have to get one for Nashville. He spoke to a supervisor, and they created a new code called NASH.

 

As soon as my mailroom manager heard about this, she called to get a credit on her home phone, which was down for three weeks. She received it immediately after she gave the NASH code.

 

By taking the initiative to do what over 30,000 other Tennesseans affected by the flood had apparently not done, Rebecca saved my business $170 and increased her annual bonus by $85 (I split the first year’s savings 50-50 on anything my employees do).

 

But this is not limited to small amounts.

 

I know of a pharmaceutical company in Missouri that pays its employees 10% of the first year savings on anything they do to cuts costs. When the company was about to spend $20 million on constructing a new building, two employees came up with the alternative of buying a nearby school that had been abandoned, and converting it to office space.

 

The company did exactly that, saving itself $3 million, and the two employees split a $300,000 bonus.

 

All of which proves what I’ve been saying for years:

 

Regardless of whether times are good or bad, anyone who’s willing to take initiative can create their own job security – and often increase their income – by finding ways to boost the bottom line.

 

 

 

To Your Success,

Glenn Shepard

 

 

 

 

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