Pay Should Match Importance

By John Malmo

http://stream.publicbroadcasting.net/production/mp3/wkno/local-wkno-970369.mp3

Pay Should Match Importance, by John Malmo

Memphis, TN – I think everybody ought to be paid for how important the individual is to the company. And, most of the time, an individual's title has little to do with her real importance to the company.

I used to work with a couple dozen large furniture makers. In almost every one, the top three or for sales reps earned more than the guy they called "president." All the sales reps made more than their sales managers. Because all those companies could have survived without their presidents. None could have made it without its sales reps. Because furniture is, basically, an unbranded business.

I also worked with dozens of companies, the products of which were highly branded. The salesmen and women weren't nearly as highly paid, because they sold heavily advertised products. In these cases, the most highly paid men and women should have been the marketing and advertising people. Because it's the marketing department that should drive product development, packaging, pricing, and distribution. And it's the advertising people who make the brands important to potential customers.

It's such a shame that government doesn't work like this. In Memphis, we have a director and a deputy director of community enhancement, whatever that means, who cost taxpayers more than a quarter-million dollars a year between 'em. What do you suppose they do?

John Malmo is a marketing consultant who concentrates on helping business owners grow their businesses with effective marketing. To reach Mr. Malmo, hear and read more of his commentaries, or ask him a direct question, go to askmalmo.com.