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This business coaching episode is about ways to establish a high rate for employee retention.

Results-Focused Training, Tools, and Workshops from Expert Business Coaches.

Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Fun Factoid: Tom's Shoes has given away over one million pairs of shoes in 40 countries.
  • How To Keep Team Members Engaged: 1. Cast a vision worth following.
  • Action Step: Write down an inspiring vision for your company.
  • Notable Quotable: Proverbs 29:18 "Where there is no vision, the people perish." (KJV)
  • Notable Quotable: "Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion." - Jack Welch (Former CEO of G.E.)
  • Mystic Statistic: "45% of working adults are willing to give up some percentage of their salary for a company that cares about how it impacts and contributes to society." - Forbes

-Hey, Paige Taylor here. And today, we're here with Clay Clark and Thriver of the month winner, Logan Pennington, who owns a DJ company. Today, Clay will be talking with Logan about staff motivation 101, how to keep your team members engaged. Are you tired of having unmotivated team members? Well, Clay will teach you how to keep your employees engaged at work and maintain productivity. So let's watch this episode and get your team members more motivated. -Logan, welcome to my dojo of mojo, my friend. -Thanks for having me. -Hey, you're one of the Thriver of the month winners. And when you won, was your wife pumped? Were you pumped? What was going through your mind when you realized you had more points than any other human? -Yeah, anybody that would listen to me was pumped, because I was pumped. -Awesome. So you were feeling it? -Mm-hmm. -Well, we're going to talk today. I know you have a staff. You have a few guys that work with you in your business. How can you tell the folks at home though what kind of business you're involved in? -Yeah, I own a DJ company called 405 Productions. And we do sound for weddings. -So you have guys you have to keep motivated. And anybody watching this has people they have to keep motivated. And so we're going to get into, well how do you keep them motivated? So the first thing I want to write down here for you is we have to cast a vision worth following. Oh, I'm going to repeat it again though, because that was too, it was too, it was too-- I don't know. It just didn't have the whole, just that-- it's really easy for me to put it into words. It didn't have the aura. It didn't have the-- let me try again. You have to cast a vision worth following. There's very few of these, by the way. Give you an example. Toms shoes. We're going to give shoes to millions of kids. So every time we sell a shoe, we're going to give a shoe to a kid. We're going to give millions of shoes to kids. Wow, OK. Steve Jobs. We're going to think differently. We're going to make remarkably easy to use, beautifully designed electronics. We're going to make it for the first time in the history of humanity that humans who are not nerds can use technology. We're going to do it. We're going to invent this thing called the personal computer. People are going to have a computer on their desk, a desktop. People, all right. Here's these bad visions I hear a lot. Well, you ask the business owner, what's your vision? Well, my wife and I want to make $100,000 a year. Well, if I'm an employee, do I care if you want to make $100,000 a year? -Uh-uh -That's what I'm saying. So you need to go write, today, your vision. And it better inspire anybody within a walking distance. OK? Because if not, it's not a good use of your time. You're not going to attract-- what kind of people, by the way, want to work at a job where there is no vision? -Carp. -Carp., not the kind of people you want to hire. So let me read this to you. OK? Notable quotable. "Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion." Aw, man. Good business leaders create a vision, check, articulate the vision-- over, and over, and over, by the way-- passionately own the vision, and relentlessly drive it to completion. The vision becomes bigger than the actual entrepreneur. Your vision had better be so big that you're just-- you have to be relentless to get it done. That's from Jack Welch, former CEO of GE. Now, those of you who are in Judeo-Christian faith-- if you're not, Jack Welch will work for you-- but if you are, in Proverbs it talks about where there is no vision, the people perish. The point is, if there's no vision, people start to drift around. You've got to have a vision where-- in every business that I have ever been asked to do consulting with, this is always a problem. The owner's like, well our goal is to be the best family doctor in town. If I'm an employee like, well, I'm going to apply for another job while I'm working. You know what I mean? -Mm-hm. -Now when you see the companies where they engage their staff and their staff is pumped, that's an awesome place to be. If there's a big vision, people will leave a job, and they will take less money to go work someplace when the vision's worth following. People will be-- in the case of Jesus, people are willing to work for free at the great risk of their own demise in death, just because they believed in the vision. They'll work for free. They'll work for less. They'll work more. They don't need breaks. They don't get tired. They're motivated, because there's a vision that's big. Without a vision, it's just sort of the great "Crapageddon."

Featured Coaching Excerpt - Notes & Transcript, Part 2
  • How To Keep Team Members Engaged: 2. Merit Based Pay System
  • Lesson Nugget: The loyalty of employees is directly related to the happiness of customers.
  • Notable Quotable: "Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees." - Service Profit Chain (via Harvard Business Review)

[THEME SONG] -So let's say that I'm working for you. Let me tell you a vision I want you to tell me. Here's the vision. Clay, if you come to work for my DJ company, which is called? MAN: 405 Productions. -405 Productions. I happen to be into real estate. I own a rent house. If you work with me for a year, I will match whatever you put down in the purchase of a rental house. I'll help you get in the game as well. So when you want to buy a house, I'll buy it with you, and as long as you work with me, you can share in the benefits of it. So you can become a DJ who invests in real estate. You know what I'm saying? So I will teach you how and we'll buy it together. You can work out all the details later but do you know what I'm saying? Now I'm like-- so if you DJ for me for two years, you're going to end up having two houses. You DJ for me for three years, you have three houses. Four years, four. By the time you've DJed with me for 10 years, you'll have enough passive income, you won't work anymore. Let me show you how. The first rental house we buy, you'll make this much money a month. You'll make about $100 a month. The next rental house, you know, we're going to make 200 a month, 300 a month. Pretty soon, you're going to be making, let's say, 5,000 a month without working plus you're building up the value, the equity, of those houses. So if you come and DJ for me, you're going to end up having great passive income and are going to have a huge net worth. All right, let's go DJ. Without a vision though, I perish. Cool? -Cool. -Second, you have to install a merit-based pay system. You must install a merit-based pay system. Now by the way, if Kim Jong Un or any other communists, or terrorists, or any type of dictators are watching, this is not really the episode for them. But here we go. Notable quotable. "Profit in growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, productive employees." What? [JIBBERISH] track it here. So one, loyalty is if a customer is happy. Customer's happy-- OK. That equals loyalty. So if I work for your business and all of our customers are happy, now no more loyal to work at your business. Does that make sense? Why would I be not happy? Why would I be not loyal if all of our customers were pissed? MAN: Nobody wants to be on a losing team. -OK. So second, you know, satisfaction is largely influenced by the value of the services we provide to customers. So if we're doing good quality then equals happy customers. Why would customers be happy if there is high quality stuff they're getting? MAN: Because they're getting what they thought they were paying for in the first place. -And if both of these are happening, then there's this wonderful thing called value. OK, let's review. So let's say that-- oh gosh. Can I be offensive? MAN: Mm-hm. -OK, here we go. So if a customer is not happy-- this happened last week in my office. Not for Thrive but for a different project-- but customer wasn't happy. Why? Can you take a gander at why my customer wasn't unhappy? -There was poor quality. -Would it bother you if you're a customer and your person you hired showed up late? MAN: Mm-hm. -OK. So the customer-- you know, let's review. The customer-- and again, I'm, sort of, new to drawing smiley faces so work with me on my technology-- but if the customer was upset about the quality, who should that irritate? -Everybody. -But, as an owner, I have to be an enemy of average. I have to have a hate for poor quality. Not a hate for poor people, a hate for poor quality. Not a hate for people who mess up but a hate for the mess up. Does that make sense? -Mm-hm, mm-hm.

Featured Coaching Excerpt - Notes & Transcript, Part 3
  • Lesson Nugget: Root out behavior that isn't high quality. High quality creates happy customers which in turn will create loyal employees.
  • Action Step: Create rules in your business that create both penalties and rewards.

[MUSIC PLAYING] -So I am like a-- I'm talking about like a white hot nuclear reactor. I'm like-- [BUZZING]. All the alarms are going off. I am just, whoa, you did what? So I go to the person. Person, did you show up late? They said, well, it wasn't technically late. I mean the customer really wasn't that mad. Let me read this e-mail to you, homes. Well, that's just cause they're crazy. You know what else is crazy, homes? You're fired. Why are you fired? Because I've warned you three times, and you don't have a job anymore. You've already documented it, but you're gone. Bam. Poof. Now, if I let this unhappy situation grow-- so I have unhappy customers due to bad quality-- then what happens to my employee loyalty? It goes down. Because no one wants to be on a losing team. So even though people say you're so mean that you fired that poor, poor employee who just made a mistake, they wouldn't want to work there if I wasn't that way. Isn't that crazy? So what you have to do is you have to root out any kind of behavior that's not high quality. So let's review this. So how do you do that in a way where you're not constantly running around firing every single person? Here's what you do. You make a football field. So you make a football field and you say, all right, this is the game of football. If you go out of bounds, what happens? MALE SPEAKER: Play's over. -Play's over. So-- [BUZZING]. You go out of bounds, what happens? MALE SPEAKER: Play's over. -You punch a guy in the mouth-- after the play, you rip a guy's helmet off and you punch him in the face. What happens? MALE SPEAKER: Penalty. -Penalty. So you've got a penalty here. The play stops. There's a penalty. You run down the field and you do a crane kick and you kick a guy in the nuts, you know, because you didn't like him. What happens? MALE SPEAKER: ESPN Top 10. -You give the fans a middle finger while walking out. You say, screw the fans. MALE SPEAKER: Penalty. -You decide not to do interviews after a game. MALE SPEAKER: Penalty. -Right? MALE SPEAKER: Yeah. -And then the players of the NFL-- which stands for Not For Long if you don't follow the rules-- but the NFL, the players all say, it's so mean that they make us do interviews. It's so mean that we can't give people the finger. It's so crazy we can't hit each other when our helmets are off or injure each other for life. But really, would there even be a league if they didn't follow the rules? No. So this is the thing. So what you do is just like in football, they have penalties. In your business, create the same thing-- penalties and rewards. If you win all the time in football and you follow the rules, what kind of rewards are there? -The Super Bowl Championship. -So you've got this nice big old trophy, right? You get this trophy. I don't know why I made the NBA trophy. But you get a trophy. You win the NBA trophy. Oh, thanks man. OK, you get that? But you also get what? MALE SPEAKER: Money. -So people can give me all sorts of crap about how they're playing sports for the love of the game. I will say this-- anybody who wants to e-mail me and get all frustrated about it, fine. There's nobody in their right mind that's going to play at the NFL level and risk all of the injuries and even be able to afford the surgeries that go with the injuries if they weren't getting paid millions. Like, you could say, I would play for free. Really? What about when you dislocate your leg? Are you going to just like, well, I don't have any money, but I love the game, so I'll just fix it myself. You know what I'm saying? No. Why are our athletes so freakishly good at the pro level? Because they're getting paid millions of dollars. There's millions of kids who grow up wanting to do it. If people were like, well, do you hear Bud is playing in the NFL. Who's Bud? Well, Bud's a guy who doesn't really work out very much. He plays for the love of the game. He doesn't get paid either. Would anybody want to be in the NFL if they didn't get paid? Would anybody want to be in the NFL? How about this. Have you noticed how athletes, over time, have gotten better and better shape the higher the salaries go up. Have you noticed this? I mean, yeah, there are some anomalies, but you know what I'm saying? Why are NFL players today in such great shape versus-- some guys were out of shape 40 years ago. Why is that? MALE SPEAKER: Money. -Money, right. So money, I'm just telling you, it's a reward.

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