Cody complains his team won't work harder. Mike Andes says that's backwards: pay them a percentage of the revenue they generate, and show them the full profit and loss statement. Without skin in the game and real numbers, expecting owner mentality is unfair.
Hey, my expenses are way greater than just being able to give y'all a full day's pay for half a day's labor. And so that's tough at times because I want to push, push, push because it's the owner mentality. I got— at the end of the week, I gotta have checks coming in so I can make payroll.
The owner's mentality that Cody is talking about is very difficult to get employees to use that same mindset. However, if you even want to consider the idea that an employee is going to operate at your level of efficiency and care for the business, you'll have to do two things. One, they'll have to be compensated like an owner, which means the harder they work, the more money they make. What we call P4P, pay for performance, where they get a percentage of all the labor revenue they earn for the business. Secondly, if you want them to operate like an owner and be efficient, etc., is you need them to have the information of an owner. And that comes in the form of open book management where you share all of the numbers. And in this case, Cody could share all the profits, all the losses. He could show all the expenses and really them understand just how bad the situation is is for the business.
