Penny Wise and Pound Foolish

Being an entrepreneur myself, I can certainly appreciate cycles that occur within our industry and the challenges we all face in managing through tough economic times.
Unquestionably; retaining or acquiring top talent, controlling costs while continuing to build the brand generally top the list.

Many employers (about 65%) today do not believe their employees are looking at other job opportunities. In reality according to a recent survey by salary.com, 65% of employed respondents are actively looking around. Employers might assume in a soft economy, employees are just happy to have a job. Hiring Managers…you are out of touch with reality! How about another dose of reality? Job browsing this year is up 17% among the employed; people are scared and do not want to be unprepared when the next “cut” knocks at the door. The talent that has been proactive in successfully building your business are the same ones who are on their way to a new opportunity.

So why are they leaving?
Compensation
Development
Recognition

Today more than ever, businesses are being pushed to control costs. In an effort to do so some employers are proposing commission only compensation packages for both domestic and international franchising sales professionals. The danger if the individual accepts this package is realizing most of these sales professionals are likely accepting the program as a “stop gap” until they locate a position with greater security in compensation. Although the temptation may be there for the company to control fixed labor costs, keep in mind that these individuals are still looking and as the economy turns, or a better opportunity arises, they will be gone. The result means continued inconsistency in the sales program, lost sales and an inability to attract top talent in the future. Beware not to be Penny Wise and Pound Foolish!

For greater understanding into maximizing individual performance through compensation call Peter Capodice at 941-906-1990 of email at peter@capodice.com.

Capodice & Associates
www.capodice.com
941-906-1990