James Schramko here. I want to talk about the different ways you can pay people.
I did a previous video about the dangers of bracket creep, and some of the comments were interested in finding out other ways you can pay people. Well here’s a counter-intuitive one: you could pay a flat salary.
Now, a lot of business owners, especially performance-oriented or sales-oriented people, they get scared about this. They think, ‘Oh, that is a strange way to pay people on a performance basis if you just pay them a flat salary.’ But here’s the thing, if you can pick a nice high number for that flat salary, people will lift their performance to meet the expectation. You can even create a document which I called ‘Expectations’ and you can outline what is expected for that salary and you can hope that your team member will meet that salary.
This is one way that I pay my team. I pay them a really high wage ongoing so they have stable income and now, they’re not having this anxiety all the time. If you look at people who get paid by performance, often, you’ll see they’re very anxious and it can actually take away from their performance so consider a high flat salary.
Other things you could do is, pay per project. That way people can work as much or as little as they want. As long as the project is paid in a deliverable that meets your expectations, then they get X amount. If they can do this on a higher frequency then they get paid more.
And another simpler way than the bracket creep is just a consistent percentage amount. So as someone pays more and produces more than they get paid a percentage of the sales that remains standard across the range so that they’re not going to start trying to stagger the payment bracket.
You don’t have to have three-month rolling averages and those sort of things. Those are a few different ways you can pay people. Hopefully, some of that is useful. Of course, there are probably other ways and I talked more about this sort of stuff inside the SuperFastBusiness Membership. If you need some help with your business, that’s a great place to get my help.
I’m James Schramko. You’re watching superfastbusiness.com.