About the Book
Preface: Why should you read this book?
Have you ever thought, “This company has never paid me what I’m really worth”? If you answered yes to the above, this book is for you.
If you are a boss or an employee, have you ever thought, “It would be really great if everybody in the company pulled together and made a real difference”? If you answer yes to the above, this book is for you.
If you are a boss, have you ever thought, “My employees didn’t really add value to the company this year and yet they still want more money”? If you answer yes to the above, this book is for you.
This book is about understanding how each person’s actions increase the value of a business, and how to reward each person for creating that value.
After reading this book, you will be able to show:
- How much more money you deserve as an employee
- How much money all employees deserve
Most importantly, you will know how to structure pay and other incentives to drive your company’s value to the highest level. The nice thing about making a company rich this way is that you and other employees can also get quite wealthy along the way.
Chapters 1-7 explain the idea in just 40 pages. Chapters 1-7 are for both employees and bosses who want better pay and a better system.
Chapters 8, 9, and 10 are for bosses who want a better system.
Chapter 11 (the finish) is about how you can get a bigger piece of the action for yourself, and should be of interest to all.
TABLE OF CONTENTS + Chapter Overviews
Life used to be simple. The hunters went out at dawn, and the best came home with a kill.
Life used to be simple and fair. The hunters went out, the best came home with food, and those with food lived. Those that did not hunt well or did not hunt hard starved. Food, health, status, and large families came to those worked hard and worked smart. The hunters “ate what they killed”.Read More
We have a lot of tension in my family when the topic of “Which burger chain is best?” comes up. My daughters like “In N’ Out”, but I like burgers from “Five Guys”. Things get tense when we are in the car and looking for the best place to eat.
However, “Five Guys” is the biggest commercial success in burgers of the last decade. Five Guys have exploded their number of locations while charging a lot more per burger than their competitors. Since starting franchising in 2002, they have expanded to over 1,000 locations in 2014. In N’ Out was founded in the 1940s, and has only 290 locations today.Read More
You are not alone. Very few people are properly and fairly rewarded for what they do.
If you have a year when you deliver 50% more product or profits than the year before, does your pay go up 50%? The odds are overwhelming that your pay does not match this value increase.Read More
Employment costs are the biggest cost for almost every company. Studies have shown that most companies have 70% of their costs in labor costs. Moreover, as mentioned above, most people feel that this huge business cost is spent under a failing system.Read More
Why don’t more firms use performance-based compensation? The main reason is a lack of common sense. Many managers take a wrong, static view of a dynamic process. By static, we mean that bosses tend to look at possibilities as fixed and future profit growth as not changeable.Read More
Why are companies spreading incentives to lower levels in the organization?
From 1900 through to the financial crash of 2008 was the century of making senior management rich through dramatic incentive plans (IPOs, LBOs, stock options, etc.). Now (the decade of the 2010s) is the decade of spreading incentives throughout the organization.Read More
We now tell the story of how my firm, L.E.K. Consulting, faced a business challenge, implemented an Eat-What-You-Kill pay system, and realized outstanding success.Read More
For good or ill, pay systems are very powerful. This power can work either for or against success. You should not change pay systems on a whim. Changing pay to the wrong type of system can have huge unanticipated negative consequences for your company or your paycheck.Read More
There is a simple 7-step approach:
- Start with small business units or groups that are receptive to the idea.
- Make sure the bosses give their needs and input up front.Read More