Being heavily involved with business development for over 25 years, Kevin Mulleady understands how to effectively lead a team. Of the various organizations, he has successfully built, one particular business model that Kevin Mulleady advocates for is a merit-based system.
The overarching theme of this business model follows the principle, “credit is paid where credit is due”.
In other words, merit-based businesses recognize and reward quality workmanship by operating on performance-based pay, rather than a standard salary – motivating employees to build strong skill sets and achieve higher goals for the betterment of the company and themselves. Here, Kevin Mulleady further discusses the power of a merit-based business.
Establishes an Even Playing Field
Life is often not fair, however; this should not be the case when growing a company by means of recruiting, hiring, and promoting employees. Kevin Mulleady believes in embracing diversity in the workplace and advocates that credit is appropriately served to the individuals with the best ideas.
Regardless of the individual’s background, ethnicity, age, gender, etc., the only factors that should be weighted are their professional performance and commitment to the company. As long as strong measurables are in place to prevent subjective favoritism, merit-based businesses create an even playing field where each team player has an equal opportunity to become an all-star.
Encourages & Builds Motivation
Another great aspect of running a merit-based business is that it motivates employees to achieve expectations. When an individual understands that their compensation and role in the company is directly correlated with their performance, they take significant ownership in their work. Furthermore, by incentivizing in this manner, employees naturally strive to hit above their targets – transforming them into high performers of top-notch talent.
Allows for Appropriate Compensation
- In a merit-based system, employees are often assessed on the basis of their professional performance, allowing for more appropriate compensation. This holds true as those who recognize and act on the equal opportunity for performance-based pay are those who tend to work smarter, bring in new ideas, and add significant value to the company.
- Thus, these individuals deserve compensation that is more in line with their professional capabilities and accomplishments, which are directly reflected in the increased value of the company.
- Kevin Mulleady believes that using this business model holds employees accountable for their work and grants them the opportunity to be appropriately compensated for their achievements.
Determines the Weak Links
Another point that Kevin Mulleady makes is that regular, salary-based pay systems can sometimes make it difficult to pinpoint underperformers. And since the performance of each employee has a direct impact on the success of the company and its operations, it is imperative to know where the weak links are in the chain.
In retrospect, a merit-based business model allows employers to differentiate those who are high performers from those who are lacking in this regard.
Kevin Mulleady explains that by operating in this capacity, business owners and employers can more effectively establish interventions on how to improve employee performance, as well as determine which individuals deserve a demotion or promotion.
Assists in Retention
Since these Merit-based Systems reward those of optimal performance, be it on the basis of talent, specific skill set, workmanship, ideas, etc., that factor aids in employee retention. When a company comprises high-performing team members who feel self-actualized by the value they add to their own professional career and the company, chances are they are here to stay. And by having an organization that is staffed by motivated, hardworking employees who feel they are compensated fairly, the organization has a greater ability to thrive.
Communicates Company Expectations
One final point that Kevin Mulleady makes on a merit-based system is that it clearly defines what the organization expects from its employees. This type of business model can reveal to employees exactly what they need to contribute, where they can add significant value, and how the business envisions the team’s success, relative to performance.
This removes all doubt of what is expected of an employee, and instead – refocuses the employee on how they can achieve the most success possible.
Kevin Mulleady suggests that operating on a merit-based business model can take an organization to the next level. As long as the company expectations are clearly communicated, it can eliminate subjective favoritism by reducing discrimination in the workplace, motivate employees to be compensated with what is more in line with their professional output, and can ultimately aid in the retention of high-performing employees by determining the weaker links. “This truly is one of the greatest forms of advocacy for heightened ambition within the workplace,” proclaims Kevin Mulleady.