Pay or Praise?

Don - November 24, 2004

Being a business owner I continually run into problems/challenges. My wife and I own a bridal store. We just completed hiring 3 new employees.

For the first time we used a little different evaluation process which included an application meeting. All the applicants came, filled out the application, took an oral spelling test, gave a 1 minute presentation as to why we should hire them, took a 15 minute “I.Q.” test and answered several other questions on paper for us.

Two of the qestions addressed their pay. One asked how much they needed per hour to come to work for us, the second asked whether they preferred salary based on performance or time on the job. Neither one of these answers were the determining factor for hiring.

Over the years I’ve read or listened to mangement trainers and professionals who expound all the benefits and reasons why praise is better than pay. Give them a title, or give them a new responsibility rather than a pay increase is typical.

We are a small botique, we have two titles – owner and employee. To “motivate” our employees we provide commissions on some items. Does it work?, not very well.

So help me out here – how do we motivate our employee’s – from your point of view, personal experience – not some class theory or book reading crap – but real world, where the rubber meets the road.

1 Comment »

  1. So… does this fall under the “…buy refurbished electronics.”? category of blog entry? Or will this be tied into Mormon culture with some Approaching Zion tactic?
    Rusty | Email | Homepage | 11.24.04 – 3:27 pm | #

    No thoughtful posts for a while, so I thought someone out there might be able to give me some good advice. And not paying for the advice IS a Zion tactic!
    Don | Email | Homepage | 11.24.04 – 7:11 pm | #

    Well, my advice would be to talk with the employees. If paying commissions isn’t motivating them, I’d seriously consider trying conversation.

    I’ve gotten a lot of success when I was in places where I didn’t have any control over the money by just following up.

    I’m not sure if it will work for you or not, but I’d try it.
    Stephen M (Ethesis) | Email | Homepage | 11.24.04 – 11:57 pm | #

    I would have thought paying commissions would help. “Where the tire hits the road” usually means M-O-N-E-Y.

    I don’t know if this helps or not … but where I work they now have a system where future co-workers also interview the applicants in a secondary interview session.
    danithew | Email | Homepage | 11.27.04 – 10:02 pm | #

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    Comment by Comment Restore — November 28, 2005 @ 12:57 am

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