I have four rules for dealing with (keeping a good staff & keeping them happy) staff in my organization:
1) Pay your people good money, and they'll do anything: (…) Employees continuously compare their salaries with friends at other companies, and you want your employees to win every time. Give Christmas bonuses, new account bonuses, birthday bonuses - whatever you can to assure your people they've got a sweet job worth working hard to keep. Some bosses periodically hand out unexpected "Appreciation Bonuses," strolling from desk to desk with checks. I personally tie compensation to deals and profitability - plus, you'll recall, all my people are equity partners. (…) But the point is that employees place three things at the top of their priority list: money, money and money. Above pleasant working conditions, above benefit packages, above health club memberships. Employees don't want to be your extended family, even in the 21st century. They want to get paid as much as they can haul down the elevator in a wheelbarrow. And when you add respect and recognition, the results are tremendous. Then you've got their loyalty forever.
2) Never reprimand: The cliché is, "Criticize in private; praise in public," but, occasional well-placed rage notwithstanding, I try not to even criticize my people in private. (…) Instead, after I've cooled down enough so I won't rip their heads off, I invite them in, close the door, and in my gentlest fatherly voice ask them questions about their mistake that almost cost me my castle. (…) But more importantly, if employees know they'll be reprimanded for mistakes, and especially humiliated, they'll never venture out where they can make mistakes. They will never get out of their own box. They'll never expand their comfort zone. Bill Gates pays bonuses for making mistakes. It's true. Gates does this to encourage creativity and imagination. He knows good people will make honest mistakes, and he doesn't want them to become apprehensive and timid about making decisions. (…)
3) Train one or more employees for your job: Or your jobs, which are to kiss frogs, find deals and raise capital. You want to train others to do what you do, so together you can get to more frogs, ferret out more potential deals and get in from of more lenders. It is essential that you bring your people into a sense of ownership by doing what the CEO or owner is doing. They'll work harder, longer and with more commitment when you allow them to help steer the future of the company, and not just its present.
4) Never make decisions for your employees: Once you give them the information they need, allow them to make their own decisions. At the same time, give them the responsibility and authority to implement their own actions. Give them chances to make mistakes from which they can learn. Your employees must grow as your company grows. It is far preferable to have the same number of enthusiastic, capable employees handling more jobs than it is to hire, say, seven more people to handle seven new tasks. How you present new challenges will determine how quickly they learn. You can tell them how to do a job, and they'll forget. You can show them how to do it, and they may still forget. But if you involve them in the process, they'll understand, remember and grow. One interesting example of how employees grow to fulfill the expectations you have of them is in spending limits. When I increased the spending authority of mid-level managers, spending actually decreased. They began to consider every expenditure as a personal one, and monitored costs more closely and more conscientiously than ever. And when I removed limits totally, the expenses went down even more.
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