Here are some real tips to use in your relationships with your employees. They are from a blog by James Altucher who is an investor, programmer, author, and entrepreneur. He is Managing Director of Formula Capital and has written 6 books on investing. His latest book is I Was Blind But Now I See. You can follow him on Twitter @jaltucher
Here are James’s rules for employees:
A) Treat them as if they are eventually going to be better than you. You can learn from every one of them before you have to fire them or before they abandon you.
B) Picture that all of them will eventually start their own businesses and you are just training them. This doesn’t mean be nice to them all the time. It means train them to start their own businesses. In my first business a bunch of employees broke free, stole some clients, and started their own business. Now they are doing very well. My partners hated them. I love them. It’s good to have many friends who look back and appreciate what you did for them.
C) If an employee gets the “disease” (all they want is more money and they don’t care about anything else and they start to have an attitude) then instantly fire them. There is no cure for the disease and it’s highly contagious.
D) No employee is allowed to say a bad thing about any client. Everyone has to love the client’s products. No gossip. No jokes. Worst situation: One time we had a proposal to send to the U.S. Post Office. Everyone worked very hard on it and we got it done just in time. The project manager FedExed the proposal to the Post Office. Fed. Ex. He was tired because his wife had just had a baby in the prior month. We had to fire him that very night. Nor did we win the job.
E) No gossip about anyone. I was guilty of this as a VC. I would talk badly ab0ut one of the CEOs we invested in. One of my partners told him everything I said. The CEO eventually went bankrupt anyway but he has since written a novel where I am the evil character. Gossip is a seed that gets twisted into history.
F) I picture every employee calling home at night to their mother. The mother asks, “how was your day at work?” I picture the employee saying, “Mom, it was the best.” I picture the mother crying tears of happiness because the baby that once came out of her is so happy to be working with me. I try to make that happen every day.
G) Teach the employee how to exploit you for their own gains. You certainly exploit them. Not in a bad way. You have to exploit them. You charge more for their services than you pay them and than you pay for all of your fixed expenses. That’s how you get rich so it’s worth it. But ultimately they have to exploit you to feel good about the relationship. When you both die there should be no bad feelings that linger among the maggots you share between your graves.
H) How can they exploit you? By building a rolodex off of yours. By learning your skill set. By learning how you deal with your failures. By learning not to repeat your mistakes. By eventually stealing some of your clients and employees and breaking off to start a business or take a higher position at a competitor. None of these things are bad things. You want them to do this. If you train them how to do this then it all becomes a good thing for you in the long run even though you might not see that. If you act with abundance in these situations then abundance will come to you. Too many bosses act with fear and scarcity and ultimately scarcity will come to them.
I) Teach them how to sell. Even if they are programmers. Programmers are often introverted and think they can’t sell. I’m a programmer. Because of their introversion, programmers are often seen as more trustworthy by the clients. Bring programmers or introverts to your meetings. They listen the best and they are the best sales people but they don’t know it.
J) Surprise them. Employees are like “reverse clients.” You have to please them just like you please a client. It doesn’t cost much to reward an employee who gets a job done. Gift certificates, dinners, get a masseuse to come in every Friday, write employees personal notes about what you liked about their work, and so on. Employees, like clients, are the gift that keep giving. They are all there to make you wealthy so you need to be infinitely grateful to them and, ultimately, help them get wealthy.