Episode 32: If You're Not Getting 3X Return on People Cost, Your Business Won't Survive

If you have a position that is salary only, you are going to get salary-only effort. You have to provide an upside for each position; it is mission-critical.In this episode of Strength in Numbers, Marcus Crigler breaks down one of the most important rules in business: your people costs must generate at least a 3X return, or the business eventually breaks.Listen as he explains how to measure return on people, why sales roles must outperform that benchmark, and how bad compensation structures kill good companies.Enjoy the show!You’ll Learn How To:Measure return on people cost the right wayStructure compensation plans that drive performanceUnderstand why sales roles must outperform support rolesAvoid overpaying while still rewarding great employeesWhat You’ll Learn in This Episode:(02:57) Most businesses can’t survive without a 3X return on the people they spend(03:34) What counts as “people cost.”(04:29) Owners must include their own salary in the math(05:52) Revenue-generating roles vs support roles(06:38) Why sales teams often need a 5X return(07:53) Why total payroll should stay under one-third of revenue(10:09) How compensation plans create accountability(11:05) Every role in your company should be able to win when the business wins(12:32) Real examples of bonus structures for non-sales roles(13:30) How to structure comp plans for managers and executives(15:49) Why you can’t overpay a great employeeWho This Episode Is For:Real estate entrepreneurs with growing teamsBusiness owners who are questioning their payroll and marginsOperators who are struggling to stay profitableLeaders who are redesigning compensation plansWhy You Should Listen:If payroll feels heavy, margins feel tight, or your team isn’t producing what you expected, this episode gives you a clear framework to fix it.Connect with Marcus Crigler:Website: https://beccfo.com/LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 Facebook: https://facebook.com/marcus.crigler