LEADERSHIP RESOURCES BLOG

Guidance on leadership development & strategic planning.

Hiring new team members? 5 Important Decisions to Make Before Giving Raises

By Leadership Resources 12/11/2020
Roll of $100 bills and the word "hire"

Among all the challenges you face as a business owner, few things are more difficult to approach than employee compensation. Between establishing base wages and salaries, distributing bonuses, and giving out raises, you’re bound to get a headache or two managing it all. That said, these issues cannot be ignored. Your people might like working for you and your business, but they won’t stick around if they don’t feel fairly compensated, especially if they can find a better paying job elsewhere.

Employees expect their pay to be fair from the beginning and increase over time (beyond just keeping up with inflation). Indeed, without delivering this expectation to new hires, businesses would have a hard time getting anyone on board, and developing leadership talent would be impossible. The hard part for you is figuring out how to broach this subject, how to decide who gets a raise (and when and why), and how to keep your people from turning on each other in favor of the almighty dollar.

So, if you’re hiring new team members, here are five important decisions to make before giving raises.

What to Do Before Giving a Raise

1. Create a Compensation Structure

As your business grows and you hire more people, you need to establish a system of compensation that works best for you. Some companies keep things simple with a one-size-fits-all solution that delivers the same percentage pay increase to every employee on a regular basis (usually annually). While this approach is equitable and easy to manage, it can negatively impact productivity and employee morale, as there is no clear correlation between performance and pay.

Other businesses might decide that performance and compensation management go hand in hand. These companies conduct regular performance reviews for each employee and give out raises based on how well they’ve done. All employees might receive raises, but the best performers will get a higher pay bump. This method can help motivate individuals to work harder and remain engaged, but it can also create tension between employees, splintering unity.

Both approaches have their merits, and you may decide to create a system that falls somewhere in between. Just make sure that your compensation structure benefits your employees and business as a whole.

2. Match the Market

No business exists in a vacuum. You must pay attention to what your competitors are doing if you plan on thriving in your industry and retaining your top talent. Companies that offer the best compensation packages tend to have a competitive edge. You may need to work with a business coach to give you a broad perspective of your industry’s outlook on compensation so you can match or exceed those expectations. This will allow you to attract and retain the best people.

3. It’s All About Value

When budgets are tight, giving out raises might seem like a burden. Indeed, doing so might result in short-term losses. However, you have to think long term and focus on building your business’ value over time. Your people bring value to your company, after all, and without them, you wouldn’t be able to grow or thrive. By reciprocating and delivering value to your employees, you’re creating a feedback loop that will propel your enterprise forward. In this way, compensating your people accordingly is a major component in talent management and succession planning. If you want your organization to be its very best and last for years to come, you need to invest in your people.

Download A Whitepaper On Succession Planning

4. Exercise Care With Pay Compression

As you calculate wages for new hires and percentages for raises, be mindful of pay compression. This phenomenon occurs when newcomers make the same amount as those who have been with the company for a long time. Not only might this offend long-standing employees, it may actually devalue their position, as the newcomer’s wage accounts for inflation while theirs does not. In other words, a dollar is worth less today than it was a year ago, and even less so than 10 years ago, and so on. 

Pay compression can toxify your workplace culture in more ways than one. Therefore, it’s important to adjust all salaries for inflation and always factor in longevity so senior employees are rewarded for their commitment and experience.

5. Be Upfront About Pay When Hiring

When seeking employment, people appreciate transparency. Companies that clearly outline their compensation packages and potential for growth often entice the best people. So, if you’re looking for top talent, don’t shy away from discussions around pay. This includes mentioning how, why, and when raises are dished out. The more open you are about these matters, the better, as it establishes expectations and minimizes confusion.

There’s nothing easy about raises. But if you take your time and think in the long term, you can develop a compensation system that attracts top talent, keeps your best people from leaving, improves your culture, and ultimately adds value to your business.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Hiring in Omaha, NE? 5 Important Decisions to Make Before Giving Raises

By Leadership Resources 01/20/2020
Roll of $100 bills and the word "hire"

Among all the challenges you face as a business owner, few things are more difficult to approach than employee compensation. Between establishing base wages and salaries, distributing bonuses, and giving out raises, you’re bound to get a headache or two managing it all. That said, these issues cannot be ignored. Your people might like working for you and your business, but they won’t stick around if they don’t feel fairly compensated, especially if they can find a better paying job elsewhere.

Employees expect their pay to be fair from the beginning and increase over time (beyond just keeping up with inflation). Indeed, without delivering this expectation to new hires, businesses would have a hard time getting anyone on board, and developing leadership talent would be impossible. The hard part for you is figuring out how to broach this subject, how to decide who gets a raise (and when and why), and how to keep your people from turning on each other in favor of the almighty dollar.

So, if you’re hiring in Omaha, Nebraska, here are five important decisions to make before giving raises.

What to Do Before Giving a Raise

1. Create a Compensation Structure

As your business grows and you hire more people, you need to establish a system of compensation that works best for you. Some companies keep things simple with a one-size-fits-all solution that delivers the same percentage pay increase to every employee on a regular basis (usually annually). While this approach is equitable and easy to manage, it can negatively impact productivity and employee morale, as there is no clear correlation between performance and pay.

Other businesses might decide that performance and compensation management go hand in hand. These companies conduct regular performance reviews for each employee and give out raises based on how well they’ve done. All employees might receive raises, but the best performers will get a higher pay bump. This method can help motivate individuals to work harder and remain engaged, but it can also create tension between employees, splintering unity.

Both approaches have their merits, and you may decide to create a system that falls somewhere in between. Just make sure that your compensation structure benefits your employees and business as a whole.

2. Match the Market

No business exists in a vacuum. You must pay attention to what your competitors are doing if you plan on thriving in your industry and retaining your top talent. Companies that offer the best compensation packages tend to have a competitive edge. You may need to work with a business coach to give you a broad perspective of your industry’s outlook on compensation so you can match or exceed those expectations. This will allow you to attract and retain the best people.

3. It’s All About Value

When budgets are tight, giving out raises might seem like a burden. Indeed, doing so might result in short-term losses. However, you have to think long term and focus on building your business’ value over time. Your people bring value to your company, after all, and without them, you wouldn’t be able to grow or thrive. By reciprocating and delivering value to your employees, you’re creating a feedback loop that will propel your enterprise forward. In this way, compensating your people accordingly is a major component in talent management and succession planning. If you want your organization to be its very best and last for years to come, you need to invest in your people.

Download A Whitepaper On Succession Planning

4. Exercise Care With Pay Compression

As you calculate wages for new hires and percentages for raises, be mindful of pay compression. This phenomenon occurs when newcomers make the same amount as those who have been with the company for a long time. Not only might this offend long-standing employees, it may actually devalue their position, as the newcomer’s wage accounts for inflation while theirs does not. In other words, a dollar is worth less today than it was a year ago, and even less so than 10 years ago, and so on. 

Pay compression can toxify your workplace culture in more ways than one. Therefore, it’s important to adjust all salaries for inflation and always factor in longevity so senior employees are rewarded for their commitment and experience.

5. Be Upfront About Pay When Hiring

When seeking employment, people appreciate transparency. Companies that clearly outline their compensation packages and potential for growth often entice the best people. So, if you’re looking for top talent, don’t shy away from discussions around pay. This includes mentioning how, why, and when raises are dished out. The more open you are about these matters, the better, as it establishes expectations and minimizes confusion.

There’s nothing easy about raises. But if you take your time and think in the long term, you can develop a compensation system that attracts top talent, keeps your best people from leaving, improves your culture, and ultimately adds value to your business.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

Schedule A Call To Learn More Read More

What Makes an EOS Implementer™ an Expert?

By Leadership Resources 11/20/2019
Group of busineswomen EOS Implementers

Strategic planning provides a solid investment in improving profit, boosting revenue growth, and discovering new levels of productivity for your company. But, it can be daunting and companies are often challenged to plan the strategy for the business on their own, not to mention to successfully cascade that strategy to all employees.

The Entrepreneurial Operating System (EOS)® lightens this load by outlining Six Key Components™ that all businesses must focus on: Vision, People, Data, Process, Issues, and Traction®. 

What to Know About EOS Implementers

Is EOS Something You can Implement Yourself?

On the surface, facilitating your own strategic planning or EOS process sounds simple. The reality is that it is challenging to participate and lead your own sessions without unintentionally flexing your power and authority. If you want your team’s honest insights, buy-in, and commitment to acting upon the vision for your organization, consider an outside expert like Leadership Resources.

Worldwide, there are consultants that have gone through EOS® training to help business leaders implement the operating system within their organizations. These professionals are known as EOS Implementers™.

Businesses around the world rely on EOS Implementers to help them achieve both their long-term and short-term goals, improve company culture, and create a sustainable operating system for their businesses. But what exactly do these specialists bring to the table? Let’s go over what it takes to become an EOS Implementer, as well as a Certified EOS Implementer.

What Is The Entrepreneurial Operating System (EOS)? Download this whitepaper.

The Extensive Training of an EOS Implementer™

The EOS Implementer program is designed for those who are passionate about helping businesses achieve their goals by enhancing their operational models and strategic planning processes. EOS provides the tools, resources, and training to transform individuals into EOS implementers. 

Certified EOS Implementers have completed that training, but are also required to remain active in the community through their participation in ongoing training and by achieving extensive requirements for the number of sessions implemented each year.

These qualified implementers must have experience implementing every type of session in the EOS Process™ with at least 10 clients, conduct a minimum of 48 sessions per year, achieve an average session rating of 8.75 or higher, and remain an active member of the EOS community, displaying a willingness to collaborate. Not only that, Certified EOS Implementers must also renew their certification annually.

At Leadership Resources, our team of EOS Implementers is led by a highly respected Certified EOS Implementer. This ensures that no matter which of our implementers is serving your needs, you will receive the highest level of service and experience in the market.

What are the Benefits of Utilizing an Implementer?

There is value in having an outside party help guide your team through the ideation, prioritization, and decision making required in these sessions. These sessions can often be intense and emotional, and it is difficult for an internal person to serve as an unbiased facilitator, while also participating in the planning process. 

An effective facilitator will invest 200-300 hours per year in planning, preparing, and leading your strategic planning or EOS process. With one of your top executives in that role, that’s time they won’t spend on the business of achieving company objectives. What is their time worth?

Leading your own planning sessions often fails to achieve its goals because your internal facilitator has divided loyalties and divided time. Instead, use an outside expert in strategic planning or the EOS process, allowing you to wholly focus and participate in the process of setting the vision and plan for your company.

If you’re looking for a holistic approach to strategic planning and growth for your business, an EOS Implementer has the training and experience to help you succeed. Leadership Resources is the premier EOS provider in Omaha, NE and Lincoln, NE. Our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Business Consulting Services: Business Coaches Are Not Just for the Select Few

By Leadership Resources 08/15/2019
Leadership resources business consulting services leadership development coaches

A motivated individual can accomplish many things. But we all have our limitations. This is in part why specialization and division of labor are so crucial to a thriving enterprise. If someone falls short on a given day, someone else can pick up the slack and keep things on course. That said, a business’ success cannot simply rely on different people performing different roles. Continuous improvement and leadership development are also key.

People get better at their jobs and hobbies in a number of ways. One of the best ways to improve is to understand areas that need improvement and implement the attitudes and behaviors to make those changes happen. However, if you’re unaware of the areas in which you are lacking, or you don’t know what attitudes and behaviors are holding you back, improvement becomes difficult if not impossible. This is where coaching comes into play. And, as it turns out, coaches are not just for managers and executives, but everyone looking to enhance their skills and knowledge.

What to Know About Business Coaching

Who Needs a Coach?

In short: everyone, from the newest intern to the CEO. More importantly, everyone needs a good coach suited to their individual or team’s needs and goals. An employee just out of college who is entering the field needs a coach who understands their situation, and who is willing to figure out what they want out of their job, career, or life as a whole. The same applies to the high-ranking manager or CEO. Their coach should be able to help them work through issues of business operations at the highest levels.

Why Have a Business Coach?

So, why have a business coach? Good coaches can objectively point out the flaws in a given process, individual, or team, and find ways to make lasting improvements. This applies to coaches in any field. More specifically, a business coach will look at everything from marketing strategies, internal culture, reputation management, sales numbers, and much more. The coach will help their client analyze this information, determine the root causes, and outline potential solutions. Because it is not possible to be an expert in all areas, good coaches help guide their clients to solutions themselves by questioning their actions and providing feedback.

But the best coaches and business consulting services do more than just identify issues and propose solutions. All industries and companies are dynamic, meaning something that works today might not work tomorrow. Coaches must stay on their toes in this way, and, more importantly, impart this wisdom to their clients. In other words, coaching is about helping people learn how to think and adapt to emergent situations. You can’t predict everything that will happen, but you can at least be prepared with the help of your coach.

The Power of an Outsider

Coaches come in many forms and places, but the best coaches often come from outside your organization. The term “outsider” should not be taken as derogatory. On the contrary, a coach from the outside often sees things more clearly and objectively than you or anyone else on your team can. Plus, this coach will have a much different background, using his/her unique experiences to improve your operations.

In a TED Talk from April 2017, surgeon Atul Gawande recounts a powerful story of birth attendants in North India who lacked the equipment and knowledge to consistently deliver healthy babies or protect their mothers. Eventually, Gawande decided to team up with part of the Indian government to deliver rigorous coaching to nurses, physicians, and managers in these birth centers. Over time, the results spoke for themselves with a massive increase in the quality of outcome for both babies and mothers.

While not directly related to business coaching, Gawande’s story speaks to the power of coaching more broadly. These birth centers sorely lacked methods of performance management. Nurses and doctors struggled to communicate, and the results were sometimes devastating. But with proper leadership development coaching, things turned around quickly for the better.

Good coaches are invaluable to any organization. At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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