5 Keys to More Profitable Employees Your Biggest Expense Should be Your Biggest Asset
Presented by Frank Coker, CMC, MBA
CEO
CoreConnex, Inc.
Producer of the
CorelyticsTM Financial Dashboard
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5 Keys to More Profitable Employees
1. 5 Keys to More
Profitable Employees
Your biggest expense should be
your biggest asset
Presented by: Presented by:
Frank David Russell
Coker, CMC, MBA CEO
Success With People, Inc.
CEO
Author of
CoreConnex, Inc.
The Company Culture Challenge
Producer of the
CorelyticsTM Financial Dashboard
4. Agenda
• Benefits of Getting it Right
• The 5 Keys
1. Business model
2. Compensation/incentives
3. Utilization
4. Metrics
5. Roadmap
• Monthly Process
• Q&A
5. Only 20 percent of all
employees are fully
engaged.
Forty percent are "enrolled,"
meaning capable but not fully
committed, and 40 percent were
disenchanted, disengaged.
Companies with the most
engaged employees had a 19
percent increase in operating
income during the previous
year, while those with the lowest
levels had a 32 percent decline.
*Towers Perrin study, 2007-2008
90,000 employees in 18
countries
6. 8 Reasons Your Employees Don’t
Care Anymore
1. No freedom
2. No targets
3. No sense of mission
4. No clear expectations
5. No input
6. No connection
7. No consistency
8. No future
*BNET, 2011
7. “Someone who is exceptional in their role
is not just a little better than someone who
is pretty good. They are 100 times better.”
Mark Zuckerberg, CEO, Facebook
*NY Times
8. Key #1: Business Model
Business model examples
• Standardized packages of products and services
– Lower paid technicians following a structured process
– More scalable
• Highly customized solutions
– Higher paid technicians inventing new solutions to
every
– Hard to maintain, more problems and higher risk
– Less scalable
• Doing both creates confusion especially when staff
are used on projects that don’t fit their skill set
9. How Do You Compare?
Business
Model
Benchmarks
LOBs
Goals
10. Key #2:
Compensation/incentives
• Compensation must meet needs, but is not a
primary motivator
• Technician and sales staff should earn more
based on revenue/profit generated
• Do not limit compensation based on
performance
• Keep performance metrics visible or the impact
of incentives will be lost
12. Key #3: Utilization
Management of:
• Technical Team Inventory: Hours
– Solutions development, implementation and support
– Define inventory and desired utilization rate
– Track all hours of work and revenue per hour
• Sales Team Inventory: Pipeline & Conversion
– Maintain current, accurate pipeline
– Track conversion rates
– Monitor revenue
generated vs. quota
14. Key #4: Metrics
• Staff utilization percentages
• Gross margin per line of business
• Sales pipeline conversion rates
• Revenue per FTE and per billable FTE
• Payroll per FTE and per billable FTE
• Revenue variation per month
All need to be tracked monthly and trend lines reviewed
16. Key #5: Roadmap
• Align staff – expertise to fit the work
• Track data – start early and track
progress
• Begin watching industry benchmarks
• Begin setting financial goals and make
progress visible to the team
• Develop compensation and incentive
plans around metrics