What Any Leader Needs to Know About Compensation.

Every time Ford increased auto production, he also raised wages. In one three year period, he lowered per auto cost 66% and raised wages each year. He did it because he knew it was the right thing to do. He did it because he knew that well-paid employees had more to spend on houses, clothes, and of course, on autos. He knew that well-paid employees were more likely to ramp up production in return. He also knew that well-paid employees were loyal.

The take-a-way here is that you can’t shrink your way to greatness. When you enable your employees to do more, connect more, produce more and get paid more, you create a positive give and take environment that’s mutually beneficial for everyone.

Truth Be Told, the goal isn’t to clear the table, as some companies think and do; the goal is to set it.

Published by The Leadership Consortium

Maxie Carpenter was formerly Vice President of HR & Talent Development for Wal-Mart Stores. After a 27-year career, he began to pursue a number of other interests, which included alternative education, nonprofits, consulting, writing and public speaking.

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