“The best people are always underpaid and the worst people overpaid.” – Richard Koch
Over the years, I’ve found that many people settle for being mediocre at their jobs. According to Richard Koch, author of The 80/20 Principle, mediocrity is rampant. The 80/20 principle is based on statistical analysis that you can measure anything and find that 80 percent of the results are produced by 20 percent of the effort.
Take a look at your current workplace and observe who is or isn’t pulling their weight. If 80 percent of the work is being done by 20 percent of the people, what can you do about it? If you are one of the 20 percent, chances are you are being underpaid. If this is the case, learn as much as possible in your job and start looking to move on. If you aren’t enjoying job enough to provide the company with real value, chances are you are in the nonproductive, unhappy part of the 80/20 equation. In this case, it might also make sense to look elsewhere for work.
Many of us are currently in a very interesting situation. As with any economic cycle, there are upsides and downsides. Currently, most employees are feeling very disengaged at their current workplace. This is why we are going to see a lot of job shifting take place, as well as new entrepreneurial ventures begin. Employers and their management will begin to grow more and more frustrated and will start to ask “why can’t we keep any good help?” – realizing they no longer have the upper hand in today’s job market.
Apply the 80/20 principle to your workforce if you are a business owner. Determine who are the 20 percent “rockstar employees” and compensate them by giving out bonuses for productivity. Productive employees will feel grateful that their performance is acknowledged. If you don’t, someone else will. Next, weed through the 80 percent that are overpaid and don’t pull their weight. The entire value of your business will grow exponentially.