Thursday, March 29, 2012

There Are Only Two Ways

No matter the business or organization, they all have this in common when it comes to employees and the value they represent. Employees either save the entity money or they make the entity money. These are the only Two Ways to justify your existence.

If you are in a revenue generating function the evaluation is pretty straight forward. Your worth to the organization is equal to the revenue you generate. For every dollar they pay you, you must generate between ten and twenty dollars in sales at a minimum. This is called the; "cost-or-sale" and will have dynamic range based on the industry, company's development status, competition and other factors. That is why; if you can't sell, you can't stay.

If you are in a position that does not directly generate revenue you must be so productive and flexible and adaptive that the company does not need to hire someone else to help you get your job done well and on time. Demands on companies change all of the time and these changes will absolutely result in your function changing. To the extent that you are willing and capable of adapting, your worth will be measured and improved.

Companies and organizations are only as good as the people they employ and the people they do business with. The difference is where the control lies. Companies control the people in the building (employees) and have no control of the people outside the building (customers) and that is why they can only have two types of people in the building; they that make the company money and they that save the company money. Which are you?

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