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The Game with Alex Hormozi

Managing Talent To Drive Higher Performance | Ep 665

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.94.4K Ratings

🗓️ 29 January 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

It’s about allowing them to have complete control over their goals. Today, Alex (@AlexHormozi) explores an innovative approach to performance management and compensation structure that drives higher outcomes. By leveraging variable compensation tied to personal goals aligned with company objectives, the strategy fosters motivation, job satisfaction, and reduced employee churn, benefiting both sales and non-sales roles.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:12) - The concept of variable compensation

(3:18) - The power of autonomy in goal setting

(4:32) - The impact of social pressure on goal setting

(5:53) - The benefits of this approach for employees and the company

Follow Alex Hormozi’s Socials:

LinkedIn  | Instagram | Facebook | YouTube  | Twitter | Acquisition 

(This episode is a re-run. Original airdate was December 21, 2021)

Transcript

Click on a timestamp to play from that location

0:00.0

if everybody on the team has to say what their personal goal is,

0:03.4

and they get to set it.

0:04.7

And if they hit their personal goal,

0:06.0

as long as it's aligned with the company goal overall,

0:08.7

if they set that goal,

0:10.1

they can set it as bigger as little as they want. What happens is that the social pressure of wanting to set good goals automatically self-correct. Welcome to the game where we talk about how to sell more stuff to more people in more ways and build businesses worth owning.

0:28.0

I'm trying to build a billion dollar thing with acquisition.com. I always wish Bessos, Musk and Buffett had documented their journey journey so I'm doing it for the rest of us.

0:34.8

Please share and enjoy. A good friend of mine in my building had a really

0:42.1

really interesting way of managing talent to get and drive higher performance

0:46.8

and output.

0:47.8

And so the reason I wanted to make this because at the end of the day, every entrepreneur

0:51.0

has the same problem, which is they need better people and they need to get more out of people that they have and a lot of that comes

0:55.8

from culture and training but every once in a while you stumble upon a process that has

1:00.6

teeth and so I think it's super cool because it is reinforced through multiple

1:06.0

different psychological levers and it's got really cool stuff to it. So let's not have it.

1:12.1

So one of the things that he shared with me that he did

1:15.6

is that he has a level of variable compensation. That's not new. It means that there's some level of

1:20.5

performance, check marks, etc.

1:22.6

That they have to hit in order to get paid.

1:24.5

Makes sense.

1:25.4

Now, the way that most companies do this,

1:27.6

and I'll tell you that what we've done up to this point for us

...

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