Research shows that there are two models for a thriving company/team:
- Cultural assimilation that produces team results and does OK for the team members.
- Structural freelancing that is done well can produce good results, and the most talented employees are paid well.
Let me use a sports analogy (Patriots, because everyone is talking about them now). Jamie Collins, a physical beast who can jump an offensive line in a single bound, did not fit in the Patriots organization. He is a gifted freelancer, but sometimes trying to do it all himself allowed the opposing team a big play. That’s the reason why the Patriots traded their most athletic player to the Browns. Less than 1 year later, Collins received a 4 year contract for $50M. By contrast, top receiver Julian Edelman has a 4 year contract for $17M in the prime of his career.
Playing as a team (Do Your Job) is better in football where there are 11 players (or baseball where there are 9) on the field at one time. Talented individuals can affect the outcome of basketball more because there are only 5 people playing.
So how does this affect your business?
With a small team – say under 18 – you can’t afford one-dimensional people. Everyone has to chip in and play multiple roles. Culture isn’t as important in small companies because the person at the top sets the tone and everyone interacts with the president/owner. Salaries are low because the company is not reliably producing high profit. The one freelancer might be the salesperson, but make sure you have an A-Player. Pay a good commission to get the cash flowing.
Once a team gets larger and the company gets more stable, culture is more important. This sets the norms, and everyone knows what is expected. Many people can be stellar in a job if the scope is limited. If the job crosses departments, it requires many more skills.
A company will get great results if everyone masters a limited scope job, Does Their Job and is assimilated to the culture. This approach costs you less because you are paying for specific trainable skills. You will also have low turnover because everyone is helping the team. If your processes require an employee to wear many hats or work in other areas, you will have to pay more for people with broader skills.
For the employee, there is more upward mobility and higher pay if your job responsibilities cross process boundaries, while adhering to cultural norms. You don’t want your behavior to stand out, but you do want your results to stand out. You will be considered indispensable and the company will feel the need to pay you to keep you motivated.
Have a plan for building your team – don’t just take the best candidate available. If you plan well, you can have a great team in a great culture producing great results. We can help you create the plan, and also help find the people who will make your company great. Contact us to see how.