Everyone knows there is no “I” in team! Knowledge and actions do not always match up and entrepreneurs’ sometimes forget how important a team is to the company. Those in charge tend to focus heavily on protecting the investors by conserving equity and capital. After all, raising the capital to run the business is difficult and time consuming. As the leader of the company, the entrepreneur has a fiduciary obligation to protect investor interests. That said, a company would have a difficult time achieving maximal business value if the team were not motivated.
Employees appreciate recognition for their time and hard work. Fair compensation, recognition, and praise are important to team development and increasing their desire to outperform. Failure to provide proper incentives can cause members to become unhappy and lead to stressed interactions within the company. The risks of losing key members increases and employee turnover costs money as new members are hired and retrained.
Building an enthusiastic team that desires to excel can help the business reach new heights. The team will be more creative and work harder when they are happier. They are more willing to stick with you in the tough times when they know you will take care of them. The following are a few ways to recognize your team when developing your business.
1. Salary: It is easy to think of hiring people for the least amount of money possible, but cheapest is not always best. There are standards of compensation for different positions and finding a way to pay within that range keeps employees from looking for significantly higher pay for the same job. Employees know the wage range or will soon learn the info by talking with friends or seeking other jobs. You will do much better if the employees believe they are receiving a fair level of compensation. They may elect to for a different job, but it is less likely they will leave because they are under paid and underappreciated.
2. Equity: Equity can be part of a compensation package in certain companies. The equity allows the employee to reap the benefits of their hard work at creating a company with a greater value. It creates a sense of ownership. Many employees in technology-based companies have become rich over the least 30 years simply because the company value increased and their equity increased with it.
3. Trust: Trusting your team and showing them they are valued is important. They want to feel they and their work are important to the company. They will feel they are valued when you show the trust in them and their performance. If they make mistakes, you may want to allow them to repair the damage and report on the activity. Taking over the process may be something you can delay until the employee has tried the repair and request your help or advice.
4. Empowerment: Great leaders empower their teams. This is easier when you have developed a trust in their abilities and performance. They may perform faster and better if decisions do not always require your approval. Teaching them to move rapidly and with care goes a long way toward giving them the power to act independently.
5. Recognition: People appreciate recognition for a great performance. Over time, the recognition can help them move up to higher-level jobs, in your company or another one. When an employee stands out, consider rewarding them with praise and/or a tangible reward, like bonuses, equity, gifts, plaques, or other such things. They will remember the recognition throughout their life and may work even harder for you.
You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions or contact him via company contact info in the website. More Startup information is contained in his personal blog.