Article
One: Entrepreneur vs Employee - What’s Best for your
Business? By Gaynor Lowndes
Recently, I have been involved in
a number of businesses that are having trouble motivating their
people. In times gone by, recruiters would rush back to their desks
after having a short spring or summer break raring to go for the
next year. It seems that in our stressed out lives this is no longer
the case. It got me to thinking what makes a motivated person?
I recently read a great book
“Before you quit your job” by Robert T. Kiyosaki. He ’s the
author of the huge hit “Rich Dad, Poor Dad”. In this book, he
discusses 10 real life lessons that every entrepreneur should know
about building a business.
Firstly, let’s consider the
differences between an employee and an entrepreneur. Essentially an
employee gets paid for their time – the more security you seek,
the less freedom (in terms of time) you actually have. As an
employee, you are paid to attend work from a start time to a finish
time and essentially your activities are managed in some way. An
entrepreneur operates without those constraints and can operate
without the security of knowing where the next cheque is coming
from. Indeed many entrepreneurs have spent many years operating
without money for long periods of time. Having said that, most
entrepreneurs desire great wealth. A further distinction lies in the
way each group is managed. Because entrepreneurs work without the
security of a regular pay cheque or indeed without knowing when the
next cheque is coming in, they take responsibility for their actions
as blame cannot be placed anywhere but squarely on the shoulders of
the entrepreneur. Employees on the other hand operate under tighter
control and therefore can easily lay blame when circumstances
change. The biggest differences between and entrepreneur and
employee is this desire for security. If you need the comfort of a
regular pay cheque (or high base salary) then I would argue that you
are at your desk for the security it offers, not the freedom of
being out on your own!
Entrepreneurs are harder to
manage as employees. This is because entrepreneurs want to operate
in their own way and hate being micro managed. Entrepreneurs push
the boundaries, and don’t like taking orders. They are often risk
takers by nature and if you are an entrepreneur working as employee
you will constantly be challenging the status quo and wanting to
find better ways to do things.
Entrepreneurs are often very good
at what they do. This is because they learn from their mistakes and
refine the process until it works for them. Employees on the other
hand will tend to blame others for their mistakes. It ’s either
the fault of the economy, the client, the candidate or their
colleague but never their own mistake.
To many of us, security is far
more important than opportunity so we play it safe wherever we can.
Are your people constantly
learning? Are they reading or listening to motivation CD ’s to
improve their knowledge? Entrepreneurs take responsibility for their
own education. For example, professional athletes spend many years
perfecting their skills. Once perfected, their skills are worth a
great deal of money – there are very few “poor” professional
athletes. Take Tiger Woods for example, it is well documented that
Tiger spent many thousands of hours practicing on the golf course
before earning any money on the professional golf circuit.
Employees expect their education
to be paid for and in addition, expect to be paid whilst they learn
it. That ’s why Tiger Woods isn’t someone’s employee he’s an
entrepreneur.
I mentioned earlier that being
able to sell was an essential skill required to be successful in our
industry. That ’s why our industry attracts entrepreneurs.
Entrepreneurs want to be measured in their ability to sell. If a
sale falls through they will refine their process and learn from
their mistakes.
I believe that to have a
successful recruitment business, you need to attract and retain
those entrepreneurs. They will inevitably make far more money for
your business than the “employees” who are more often than not
seeking only the security of a high base salary. So how do we do
his?
A good starting point is perhaps
loosening the strings a little. That is allowing employees to work
their own way, learn their own way, within the business. This
certainly doesn’t mean working outside your quality system, more
allowing for independent learning, time management in activities
that although in the short term won’t aid company morale, will
eventually lead to a team which has far more loyalty than simply
wishing for security in an unstable industry.
Employees need micro management
to ensure that activities are completed, entrepreneurs need to know
the outcome required and to be left alone to get on with it. The
mistake many recruitment business owners make is to confuse the two
types of people. Entrepreneurs tend to run the business and because
they hate to be micro managed, believe their employees will respond
to “leave alone” management. The problem inevitably is that
their organisation is full of employees. Decide what type of
business you want and then learn how to manage the types of people
that will make it successful.
Gaynor Lowndes, the Managing
Director of The Recruitment Training Company, has over 18 years
recruitment experience, gained in both Australia and the UK. If you
liked this article, consider Gaynor’s highly successful book
“The Art of Recruitment”. Visit www.trtc.com.au
to place your order.
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