Greed vs. sharing

Greed vs. sharing.

Over the years, I have observed two distinct attitudes in regards to ‘sharing the wealth’ with employees. One attitude is that employees are paid to work, and when they do, they get to keep their job and get a check every week.

The other attitude is that employees are valuable assets to the organization and contribute to its health, success, reputation, profitability and performance. The managers who believe this tend to share the rewards with their employees. There are different compensation systems and ways to reward employees:

·       everyone can share in a bonus system – regardless of performance or contribution.

·       only certain people (owners, management, certain peak performers, family members etc.) get to see any of this cash.

·       people receive bonuses based on their contribution to profitability or sales.

·       everything left over goes to the owner or shareholders.

There are advantages and disadvantages to each of these philosophies. I don’t intend to pick each apart. If you would like to discuss the advantages or disadvantages of any of them, please give me a call. I would like to discuss, however, the major difference between two of them:

-keeping the wealth among a select few 

-sharing the wealth with employees

I can best explain my point here with a ‘real life’ example from one of my previous clients years ago.

The two owners loved to keep everything for themselves. Not only that, they would flaunt their purchases in front of their employees. They would park their new Mercedes by the door so everyone could see. They would talk incessantly about their latest toy etc. etc.  They would brag about how much money they made and what they could buy. Now, I want you to understand I am not against an owner or executive earning lots of money and buying whatever he/she wants. 

However, these two young owners had their priorities all wrong.

The copy machine was old and in need of service. The receptionist was using a worn out old Selectric typewriter (that’s for those of you over 45) instead of a new computer. Get my point? If you keep it for yourself – fine, but don’t act surprised how your employees respond when they haven’t had a raise in three years or are required to use worn-out equipment or cheap supplies.

Your employees are the ones that ultimately determine your income, wealth and lifestyle.  Ignore them to your peril.

What is your attitude when it comes to sharing the wealth?