“Employee Buy-In”
by Chris Reinhardt, feedlot specialist
Every manager hopes that the entire team “buys in” to the leadership’s vision for the ultimate goals for the company and for how leadership hopes to approach those goals. But how often does the manager ask, “Have I ‘bought in’ to my people?”
I recently listened to a highly successful agricultural entrepreneur discuss compensation philosophy, indicating that providing an ownership stake in the company had dramatically reduced turnover and improved the team atmosphere of the entire company.
When the company is growing and is profitable this is obviously an effective way to compensate employees and yet defer the compensation all at once. But providing some kind of stake in the company is about so much more than the immediate dollars and cents value, either present value or future value.
By providing a tangible ownership stake in the company, employees almost cannot help but “take ownership” in the grander vision and direction of the organization. It is in their own financial best interest to give 100% to help accomplish company goals. To do this, they must either simply passively accept the direction, actively participate in development of the vision, or at least commit time and energy to understanding why this direction is best for the company.
It is much more difficult, both financially and emotionally, to leave something which you own than something which simply pays you every other week. Because you bought into the vision, you may have invested deeply in developing the systems in place to help accomplish company goals—this is partly your baby. And when you ultimately deliver on the company goals, you will reap the rewards, both financial and emotional. To leave the company before this is accomplished will take a serious upheaval event.
So as you’re developing your compensation program for employees, don’t restrict your thinking to short-term salaries and conventional insurance packages. Consider ways to encourage long-term thinking and long-term buy-in by new and existing employees, to make it difficult for them to consider leaving something they’ve helped to build.