There is something inherent in successful organizations that makes everyone associated with them want to "win." You can notice it the minute you walk into their building and it permeates every aspect of their operations--including compensation. At their core, they have an abundance mentality and believe that their approach to growth should financially benefit all key stakeholders. In fact, they believe such a philosophy means that shareholder wealth will accelerate at a faster rate if others participate in the value they help create rather than being mere bystanders as the company succeeds.
These are known as wealth multiplier organizations. They go beyond wealth creation by enlarging the opportunity for their workforce to enjoy the fruits of company growth. However, they don’t do it because they are merely altruistic and magnanimous (although those qualities may be present). Rather, they see the wealth multiplier philosophy as smart and strategic. Shareholders in such organizations know they are more likely to achieve their growth goals if employees see their own wealth accumulation ambitions fulfilled through their financial partnership with the company.
The following chart compares companies that are merely wealth creators with those that are wealth multipliers.
| Wealth Creators | Wealth Multipliers |
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As you look at the chart, hopefully you notice the subtle but critical difference between wealth creator and wealth multiplier organizations. Wealth creators are not poorly run businesses. They are good, profitable companies. Most enterprises that are having some modicum of success would be considered wealth creators. However, wealth multipliers are not interested in being just good and profitable. They are committed to standards of performance that they believe will have a positive impact on their customers, their employees and the communities in which they operate (whether local, national or global).
If, then, you want to effectively tie what you pay to the results your business generates, you will likely need to begin seeing your business through a wealth multiplier prism. From that view, compensation becomes a systematic means of investing profits in a way that multiplies productivity and growth.
To learn more about how wealth multiplier organizations succeed in their approach to compensation, watch this webinar now! "How to Effectively Link Compensation to Results"
