Entrepreneurial Teams

It is a common refrain from entrepreneurs that they can’t seem to get their team as entrepreneurial as they are.  That their teams don’t have the same drive and determination that the founder does.  Of course this is the case.  Employees are just that, people you hire to help you build your business.  Some may be more entrepreneurial than others, but the majority are looking for a great job with good benefits.

That being said, there is definitely an opportunity to encourage and reward employees for approaching their jobs as entrepreneurs and with an increased drive and determination.  It all comes down to the right reward system.

An entrepreneur is rewarded with success.  You should do the same with your employees.  Here are a few quick guidelines:

Reward Performance
On top of everyone’s base salary, provide objective goals that they can hit for even greater pay.  I am not talking about goals that the team hits, but specific goals for each employee.  Something that is directly within their control.  It can be increased sales, lower costs, lower employee turnover, etc.

In line with this pay for performance, have a graduated scale that allows your employees to make significantly more money with greater performance.  For someone in Marketing, if they are able to hit 100% of their goal, you should pay them X.  If they hit 200% of their goal you should pay them 3X.  Make sure that the rewards for success are significant and drive the desired goals for the company.  We aren’t talking about small numbers here.  Why shouldn’t the employee earn more than the CEO?  If they are Rock Stars shouldn’t they be paid like them?

This type of approach will also enable you to objectively rate your employees.  Team feedback, surveys and the lot are important, but you want performance.  You need those people that are able to get it done, do it well, and blow way past your stated goals.

Stock options were seen as a way of doing this, and they still are.  This type of approach can reward employees with both pay and increased options.  Though, in this market cash is king.

Expect Mistakes
Especially so if you want your employees to be entrepreneurial.  This requires risk taking.  Let them know that mistakes are expected and accepted.  If you don’t, your employees will play it safe, which won’t take your business to the next level.

Quickly, it comes down to objective results that reward your employees on an increasing scale and you must be open to mistakes.  Without either, you can expect 9 to 5 employees.  With both, you can open up your company to intra-preneurs like never before.