by Mike Ricotta - September 27, 2016
We get it, you’re concerned with your salaried investments and you want to make sure you’re getting a positive return. Unfortunately, the way you’re going about validating your mistrust for your employees is costly in so many ways that it begs the question why you’re even running a business. You’re probably spending probably 1/5 of your salary budget on internal resources and management in order to support the 4/5 production staff. Factoring in the (lowball 10%) internal efforts that production is spending to assist in implementing your new and changing systems, training time (minimum 10%-20%), and the unavoidable overhead (let’s call it another 10%) in having to work within these systems through every step of the way, you’ve successfully managed to pay 1/5 of your staff to find a way to reduce your productivity by 30-40%, in an effort to be certain that they’re actually “doing stuff” other than youtube and reddit. Averaging that out, your management tactics are now costing you 48% on actions that do not produce anything of value. That’s just the salary and sweat value, so let’s round that off to 50% after considering the costs of your licenses and support.
Great, so now you’ve spent 1/2 of your budget trying to make sure that 4/5 of your people are doing at least a 65% production work, for a full 100% effort work day. Over-management is a wonderful way of straining morale and losing employees and turnover is extremely costly, you can pretty much say goodbye to your production value. Let’s assume that you live in some vacuum where you run a company of emotionless robots whose only interest is wasting your time, who have no concern for their own well being, and who work through their lunch breaks every day for an exact 100% efficient productivity rate. In this utopia, you’re still only producing value 50% of the time. Consider asking yourself something:
So, what have we learned? If you don’t trust your workers to be concerned for your bottom line, trust that they’re concerned with their own, and play into that. Stop concerning yourself with policing your production workers with overreach and quotas and give them a reason to want to do it, themselves. You’ll save everyone a ton of time, you’ll save yourself a ton of money, and you can go on that vacation that you had always intended to… Isn’t that why you started this business in the first place? ;)