“My take home pay doesn’t take me home!”
“If sales could increase – that would be great for business!”
Regardless of whether you work for someone or own a business – making more money is a thought that is in everyone’s brain. The question is always: “How can I make more?”
In his book “The Strangest Secret” author Earl Nightingale says “Your success will always be measured by the quality and quantity of service you render. Most people will tell you that they want to make money, without understanding this law.
The only people who make money work in a mint.” I laughed at this the first time I read it but isn’t this the truth? He goes on to say:
“The rest of us must earn money. This is what causes those who keep looking for something for nothing, or a free ride, to fail in life. Success is not the result of making money; earning money is the result of success — and success is in direct proportion to our service. Most people have this law backwards. It’s like the man who stands in front of the stove and says to it: “Give me heat and then I’ll add the wood.” We’ve got to put the fuel in before we can expect heat. Likewise, we’ve got to be of service FIRST before we can expect money.”
Many employees are distracted by others in similar jobs, who are getting more than they are. Everyone knows what the minimum wage is and what they should be getting. Others recognize that while the cost of living is going up and up their salary has flat lined. Many after talking at the boss for months on end decide to do something about this aberration in their pay packets and seek out organizations to negotiate on their behalf.
Business owners on the other hand keep hounding down the magic bullet. They employ tactic upon tactic to make a difference in their bottom line from hiring smooth talkers who walk on water, discounting prices that it no longer even makes sense on a ledger to severe cost cutting measures that only introduce new problems and cost more in the long term.
On both sides of the fence, whether employee or boss – you are so obsessed with how to get more money that you’ve completely missed the point that you must first be of service.
Return on investment (ROI) is a phrase that has been used so much it has lost its meaning. Right after you’ve finished presenting you cringe as you’re asked “so what’s the return on this investment?” Fair question but then you ask “How are you measuring this now?” And there is no response. Silence.
The truth is that we have been able to measure ROI on quite a number of things but have also used “what’s the ROI?” as a way to stump ill prepared sales representatives and stop the sale. But how do we measure our contribution? How do we measure the return on ourselves? What are we bringing to the table? And “no” showing up for work, on time, doing what you’re required to do, without ever being sick is NOT the answer.
In “Put Your Mindset to Work” authors James Reed and Dr Paul G. Stoltz says “The greater your true overall contribution relative to the entire cost of employing you, the larger your personal ROI (Return on individual) will be.”
Calculating personal ROI is among the most important calculations employers can consider for any employee. This helps them help you answer the question why YOU should be kept over everyone else. Not because over at company X someone in your position gets Y and you’re only getting Z. This is NOT a good argument.
In chapter 9 of “Put your Mindset to Work” a formula is provided for calculating personal ROI. It is a percentage that can be calculated as a function of the total value of your work, ideas, and impact and your total cost to your employer:
ROI = (work + ideas + impact – resource) x 100/resources. Work is anything tangible you put effort and energy into that contributes to the company. Ideas are the suggestions you offer that when put to use can hopefully create value for others. Impact is the net effect (plus or minus) that you have on others or put another way – are people happy to see you when you walk in a room or do your colleagues cringe and get quiet? And finally resources – the cost of EVERYTHING provided to you and/or consumed by you at work.
Approaching your own self worth this way completely changes the conversation. Everything you would be discussing would be in the context of your own contribution and the value of that. Earl Nightingale instructs “Don’t concern yourself with the money. Be of service … build … work … dream … create! Do this and you’ll find there is no limit to the prosperity and abundance that will come to you!”
You’re cheating yourself if you don’t calculate and understand your value and worth. You’re living life at a much lower level than you deserve. Convince yourself that you’re worth your greatest effort and you won’t have to try to convince others. They’ll know it. They’ll see it. They’ll feel it. And most of all they’ll pay you more for it!