The result of compensation for one’s time.

When one is compensated for their time, there is a natural tendency to feel entitled to compensation by simply showing up and spending time. While that may seem a naturally attractive deal upfront in the short term, in the long term, both the employee and the business lose because the business owner/business is compensating an individual for merely showing up to a said location. In other words, it’s like the body compensating you with better health for simply arriving at the location of a gym whether you did any exercise or not. As we all know, that is not how the body works. Likewise, businesses won’t ever truly work that way, much less be maintained.

What makes a successful business, in my view, is not the amount of money it earns but rather the amount of freedom it’s able to bestow upon its employees and its owner. If this were ever a popular consensus, it would reframe what is rewarded as success — both individually and in corporate interests. There is a clear reason why almost every major company gets to a point where they have to downsize. The reason is as follows: compensation to employees based on clocking in and out does not encourage or reward a performance culture but rather complacency and entitlement-based behavior. It doesn’t incentivize employees to a result; it incentivizes employees to an activity. That ends up yielding a result of more money being spent…