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Over the years, prices and various expenses have risen, and every employee hopes for a substantial increase in salary, but it is estimated that over 90% of small companies cannot achieve this. Facing these pressures, sometimes as the boss, I wish I could just close the company's doors and use the funds to speculate in stocks or real estate, seeking peace and quiet, and not necessarily earning less.

I once asked an employee from the sales department to submit a store contracting plan. After he finished it, he handed it to me, saying it was a relatively conservative plan that fully considered the balance of interests between the company and the contractor. When I calculated it carefully, I was almost furious. According to his plan, when the store's gross profit was 10,000 yuan, the store's sales wages and bonuses would already reach 15,000 yuan, not including various employee insurance costs. Moreover, the higher the store's profit, the higher the bonus commission ratio, so regardless of the store's profit, not a single cent would be left for the company—and this was only his "relatively conservative" plan. Most people have an endless pursuit of money, and it is impossible to satisfy everyone in the company. Even so, I can try to satisfy the 20% of key employees.

First, develop key employees to become shareholders. I sold company shares to key employees at half price with a buy-one-get-one-free offer. If they withdraw within five years, they only get back their principal; if they withdraw after five years, I redeem the shares at three times their actual investment. Additionally, I distribute 60% of the company's net profit as dividends each year—after all, when there's money, everyone shares. However, with rights come obligations. If a shareholder does something disloyal to the company, they are doubly punished, and the losses caused are deducted from their share capital. This tactic has worked well: in the past five years, no shareholder has left, and key positions in the company are held by shareholders, which has saved me a lot of management effort.

Why not give shares to key employees for free? Actually, I don't care about the money, but people don't cherish what they get for free. Moreover, the money they invest serves as a deposit to prevent shareholders from doing outrageous things. Besides, employees can recover their investment through dividends within five years. Without investment, how can there be returns?

Once, I overheard a shareholder say to others: A company in the same industry wanted to poach him, offering a much higher monthly salary. If it weren't for his shares in the company, he would have jumped ship this time. Hearing this, I felt gratified: indeed, being a shareholder makes a difference. Second, significantly increase the income of key employees. Although the company's current operating conditions cannot greatly increase everyone's income, we can still ensure that key employees' income is above the industry average. While increasing the basic salary of key employees, we also set higher business assessment indicators for them and raised the commission ratio for frontline employees after completing tasks. This tactic has been quite effective; most people have smiles on their faces after receiving their year-end bonuses.

Next, provide development space for employees. The company is continuously growing, new departments are constantly being established, and old departments are expanding, which requires more management positions. Our company's cadres are generally selected from within, rarely "parachuted" in, so for employees with development potential, the company will promptly remind them that as long as their abilities reach a certain level, they will be promoted at an appropriate time. This gives employees confidence to continue developing within the company. In addition, the company has a policy: if an employee feels unhappy in their current position or sees no development space, they can raise it at any time, and the company will try to transfer them internally according to their requirements, placing them in a position they desire.

After implementing these two measures, the results were quite obvious. The turnover rate of key employees, especially those in management positions, remained basically within the range the company could tolerate, and as a result, the company's daily operations were not affected.

Excerpted from "Learning to Be a Boss by Doing"

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