Business By Hormozi #119: PSA to Boomer Business Owners: People Haven’t Gotten Lazier, You’re Just Getting C-Players Because You Haven’t Changed Your Compensation Since 1990
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The Shift in Employee Expectations
Tom, a seasoned business owner, ran a successful company for over three decades. He had been proud of his stable workforce, but recently, he noticed a troubling trend: his team just didn’t seem as motivated. Tasks were taking longer to complete, and the level of creativity was lower than ever.
Tom was frustrated. "People have gotten lazier," he thought to himself. "Back in the day, employees were driven. Now, they’re just coasting."
It wasn’t until Tom spoke with a younger entrepreneur, Adam, that he realized something shocking. Adam had experienced the same challenges, but instead of blaming his team, he looked at his business practices. Adam pointed out that compensation structures and workplace culture had evolved, but Tom’s business hadn’t kept up with those changes.
"The problem isn’t that people are getting lazier," Adam said. "It’s that your compensation hasn’t changed since 1990. You’re still paying like it’s the good old days, but times have changed."
Understanding the Changing Workforce
The world has changed significantly since 1990. Expectations of employees have shifted, particularly when it comes to compensation. In today’s competitive job market, employees want more than just a paycheck—they’re looking for meaningful work, flexibility, and rewards that align with their lifestyle and ambitions.
Boomer business owners who have stuck with outdated compensation packages are finding that they’re attracting "C-players"—employees who are simply going through the motions and doing the bare minimum. These C-players don’t have the motivation or passion that once drove people to succeed.
But the issue isn’t with the employees—it’s with the compensation and the work culture. When you don’t offer competitive pay, benefits, or a work environment that matches the needs of today’s workforce, you’ll struggle to attract the A-players who can truly make your business thrive.
How to Adapt to the Modern Workforce
If you want to avoid getting stuck with "C-players," it’s time to rethink your compensation strategy. Here are a few things you can do:
Offer Competitive Pay: Ensure that your compensation packages align with current market standards. Pay attention to industry trends and adjust regularly to keep your wages attractive to top talent.
Provide Benefits Beyond Pay: Think about flexibility in the workplace, remote work options, and professional development opportunities. These perks are just as important as the paycheck.
Create a Positive Work Culture: Employees today are looking for more than just a job—they want a purpose. Make sure your company fosters a culture of collaboration, growth, and recognition.
Invest in Technology and Tools: Employees expect to have the latest tools and resources to do their job effectively. Outdated technology not only slows productivity but also demotivates employees.
The Cost of Inaction
Business owners who continue to offer outdated compensation and workplace structures risk losing the best talent to more progressive competitors. The result? C-players—employees who don’t contribute at their fullest potential.
However, by failing to adapt, you’re not only hindering your company’s growth—you’re setting up your business for failure. If your employees aren’t motivated, neither will your business be.
Conclusion
The problem isn’t that people have gotten lazier. The problem is that business owners have failed to evolve with the times. You can’t expect top-tier performance from employees when you haven’t updated your compensation in decades.
If you want to attract the best talent, it’s time to rethink how you compensate your team. Offer competitive pay, provide modern benefits, and foster a work culture that keeps employees engaged. Only then will you be able to shift from hiring C-players to A-players.
