Ask yourself this question... do you have a

That's an excellent, to-the-point summary!

- Dien

Hi Duane ~

Good to see you are still out there thinking! I for the most part agree with what you wrote here. That along with Michael Ross' summary below will have me thinging a bit.

~ Dan Butler
--
http://www.TheNakedPC.com/

..Just to add If I may be so bold :-) ... Hire or work with people who are detail oriented, if you happen to be more "idea oriented" :-)

> The entrepreneur needs to be a generalist
> whose business specializes.

> Michael Ross.


GetMotivation.com

Thank you Paul, Dien, Mel, Gordon for your replies. It has helped clarify a LOT for me.

I have the heard the following sentiments from way to many employees.

“Duane I would leave my job, but they just keep promoting me!”
“Duane you’re young get the Heck out, before you get TRAPPED like US.”
We have to do this!”

While some are very content with what they do at work; others just want to escape but feel they can’t.

All I can say is “YIKES!”

In answer to my own questions, here are the 2 methods to keeping employees working for your company for a very long time.

Method #1 Make job functions Increasingly specialized

Method #2 Make job functions more Entrepreneurial in Nature

Method #1 Specialization: is used by BIG CORPORATIONS and Government

1) That is to keep the job functions as specialized as possible. So that you never really learn how everything fits together. Therefore you will never leave and become my competition. Why not? Because you don’t believe you can put the pieces together. All you have done since you left school was YOUR SPECIALTY.

Example: “Hey I studied accounting in University. I spent years to get my CGA, CFA, CPA etc. I AM a corporate accountant. That’s what I am that’s what I do.”

2) Create a work environment that’s like a second family. Keep everybody happy with perks, nice titles, a promotion, staff parties, potlucks galore and hey don’t forget birthdays. If you’re good at it, then it’s very hard to leave your family.

3) Use performance bonuses and other financial incentives to keep people motivated

Method #2 was to make each job function more Entrepreneurial perhaps responsible for their bottom line.

Examples:

Read Gordon’s Post about a SCI. here’s the link http://www.sowpub.com/cgi-bin/forum/webbbs_config.pl?read=7353

Conclusions:

I think Method #1 Specialization creates a sense of dependence in its employees. They see their job as something that they “Have to do”. In this method employees can be seen as a cost to be kept down.

Method #2 however employees could feel more free. Employees would be paid more and feel like they own something. Employees might not be seen as a cost to be kept down, but a valuable money generator that can grow the bottom line profits of the business owner.

Thank you all for your insightful replies.

Sincerely,

Duane O. Adolph

> Hi Dien,

> I'd like you to imagine that "YOU ARE
> THE MAN" in your town.

> (Hey I know you "Rule" the SOWPUB
> world but this is just hypothetically
> speaking :->)

> You are the richest man in town. You own a
> huge Direct Mail Corporation. You sell a
> very Unique product.

> You also have the top specialists in the
> county working for YOU. Ace Accountants,
> Superstar Marketing ladies, the best
> copywriters, 5 star customer service people,
> The top computer nerd in the land...etc.etc.

> STOP!

> "O.K come back to SOWPUB for just a
> minute."

> Here are my 3 questions.

> 1) How would you stop your top employees
> from taking your idea/ideas and building a
> business of their own to compete with
> you?...

> 2) How would you get them to work for YOU as
> employees for the rest of their lives,
> without ever thinking of leaving?

> 3) Now here's the kicker, how do you do it
> without the Use of Contracts? and Have them
> be very happy to do it?

> If you could please answer these questions
> and then I'll post my reply to your original
> post.

> Sincerely,

> Duane Adolph

> How about giving them their regular paycheck
> + performance bonuses + company stock all as
> incentives NOT to leave.

Yes these are all excellent ways to accomplish the goal. However not many job function have these in place. Unless you're in sales, or you are an executive.

> There will still be an attrition factor
> because some people are diehard
> entrepreneurs. However, the above mentioned
> incentives seem like the way to go.

Yes the diehard entrepreneurs KNOW that they can do something for themselves that will BUILD wealth. Why work for a wage when you can build a business.

> I'm interested in seeing your reply to
> Dien's original post.

Thanks Paul!

> Respectfully,

> Paul Short
> EbizEdge.com

Hi Dien,

I like they way you changed the question around and made it relevant to you.

I agree that it is impossible to keep everybody.
I too love a good work environment, and RESPECT is vital for me as well.

For the Pay, I would love to have regular paycheck, plus a bonus of sorts relating to the bottom line profitablity of my department.

This way I know that my work is RELEVANT.

One thing that I've noticed with all of the replies, is that everybody wants to make the job more ENTREPRENEURIAL in nature.

I guess that's who is visiting this board Entrepreneurs:->

Duane

> Hi Duane!

> You've got some interesting questions!

> I would turn the questions around....

> What would it take so that I wouldn't
> leave a business and compete?

> I think for me, it would take:

> 1. A good work environment - one where I was
> respected and my input was appreciated
> 2. Good pay, and
> 3. Some kind of stock option or stock
> ownership plan - I'd like to be a part-owner
> of the business (even if my stake was
> small)....

> I think it's impossible to stop everyone
> from necessarily leaving, but I think you
> could probably do quite a lot to keep your
> talent.... :)

> That's what I think, just off the cuff....
> I'd love to hear what else you have to
> share! :)

> - Dien Rice

Hi Mel,

> Let me be VERY brutal here: Unless Top
> Businessman is making a ton of mistakes and
> employee morale is the pits, the chances of
> a New Guy taking over the niche is small. It
> can be done with a large enough organization
> and enough money -- but newcomers don't have
> the contacts or name recognition and may not
> have the staying power to do it. Building
> THE #1 business in a niche is NOT something
> done in one year or two. It takes up to 5
> years... or longer.

Fascinating point above from a business competition perspective. I agree that unless there were some SEVERELY dissatisfied customers, competition would have a difficult time competing
in a niche. (In my post I really should have focused on the employee angle a bit more i.e. why they are not able to do what the business owner that employs them does.)

> Me? I'd hire the people that employers often
> overlook -- the older worker. Offer a good
> compensation plan and insurance. Too many
> people look at age and not experience and
> dedication.

Oh say it again Mel! Older workers are invaluable. Their knowledge and experience can be a measurable asset to a company. However unless they're coming back as consultants, companies will focus on the youngsters.

It's too bad that Intellectual Capital cannot be measured on a balance sheet.

> Not sure what you mean here. In the US,
> unless you're doing "work for
> hire" jobs (like lawn work or a friend
> doing secretarial work for you), a letter of
> agreement/hiring contract protects both the
> employer and employee. Even a bill of sale
> for services (such as tree trimming) spells
> out the services received for the payment.

> What, exactly, do YOU mean by that?

Yes I must admit my 3rd point was very ambiguous.
I live in Toronto Canada, so I'm aware of the legalities involved in hiring employees or retaining contractors.

What I was trying to get at was that even without signing contracts majority of employees would have a hard time starting up a company to compete with you by themselves. Due to the specialized nature of their training and current job.

It's always prudent however to cover your "ASS..ETS" with the contract though.

You never know where the next Bill Gates lies.

Thanks Mel

Duane

Thanks Dien,

I know what you mean about the PHD's in philosophy. I know some Doctors that are washing dishes at a 5 star hotel.

I'm glad you liked my points. I must admit after writing for a while, I started to confuse myself :->

Duane

> Hi Duane,

> You make excellent points!

> As an illustration of your point, if you
> specialize in something which is not in high
> demand, you could specialize yourself right
> out of an income.

> Probably the best example of people like
> this which I can think of are people who do
> Ph.D.'s in philosophy. The only way you can
> get a job with it is to get an academic
> position teaching philosophy to the next
> generation of students! As a result, many
> people with Ph.D.'s in philosophy end up
> driving taxis, working as bank tellers, etc.
> - NOTHING to do with their specialization.

> On the other hand, here's the opposite
> example. My notebook computer needed some
> repairs recently (the screen stopped
> working), and I found a specialist notebook
> computer repair place near me to get it
> fixed.

> They specialize in fixing notebook computers
> - they don't do anything else. No desktop
> computers, only notebooks. Not only can they
> charge more, but they get more business too
> than the business that tries to repair
> everything.

> The reason why I brought my computer to them
> is because I reasoned, if they specialize in
> JUST notebook computers, they will be more
> likely to spot the problem with my notebook
> and be able to fix it. I wanted RESULTS, and
> I reasoned a specialist would be more likely
> to deliver it, and I was willing to pay more
> for the privilege.

> They get a lot of business - they told me
> that people even come to them from
> interstate to get their notebook computers
> repaired. To me, this is an example of a
> successful specialization.

> I see this topic tied to the concept of
> niche markets. While most computer repair
> places try to be "do everything"
> places, the notebook computer repair
> business focused on the niche market of
> businesses and people who have notebook
> computers. The problem with the Ph.D.'s in
> philosophy is that their niche market is too
> small, and there are too many people
> competing for the little available work
> there is!

> However, I agree with a lot of what you say,
> Duane.... In reality, I like being a bit of
> a generalist too. How can you get the best
> of both worlds?

> I think you can win all around if you make
> it so your business targets a
> "specialist" niche.... It doesn't
> mean you have to be a specialist yourself,
> in order for your business to be seen as a
> "specialist" business by its
> target market....

> Well, those are a few more thoughts, I
> thought you raised some excellent points,
> Duane....

> - Dien Rice

It doesn't get simpler than that.

End of Story! :->

Thanks Michael

Hi Dan,

Yes the brain is still kicking over here.

Michaels post will have thinking quite a bit too.

However, like I told Gordon 2002 Year of Action.

Thinking is nice, but I learn so much more from doing.

Hope you're doing well. How are flashlight sales? :->

Take care.

Duane

> Hi Duane ~

> Good to see you are still out there
> thinking! I for the most part agree with
> what you wrote here. That along with Michael
> Ross' summary below will have me thinging a
> bit.

> ~ Dan Butler
> --
> http://www.TheNakedPC.com/