Plumbers and Alyssas
Every week, my assistant Alyssa sends me an e-mail that breaks down what she worked on, what she's working on, and how much time she logged. My contract with her is an hourly rate with a minimum number of hours per month, so she's continually clocking her time.
Yesterday, when I opened her weekly e-mail, I was startled to learn that she had logged only 40% of the hours I paid her for in January. Oops! Conventional wisdom would say that I overpaid her; I got ripped off. After all, if she only worked 40% of the hours she was paid for, that means she technically made 2.5x our billable hourly rate. Know what I think of that? Excellent!
While our contract is based on a specific hourly rate (with a minimum of x hours), I don't actually pay her for her time. Instead, I pay her for her impact. I'm better because of her. While she might have logged fewer hours than anticipated, which was primarily because my month was jam-packed with consulting work, I can still look back at the month and say she did a phenomenal job at helping me keep my proverbial train on the tracks. And if she made more per hour for doing so, great for her!
Even if she only logged 10% of the hours I'm paying her for, that's still a win for me. The impact she's having on my work life is tremendous. If I'm measuring her fee based on the number of hours she worked, it appears I grossly overpaid. However, if I'm measuring her fee based on the impact she had on me and my business, I underpaid her! Perspective matters.
It reminds me of the old business parable about the plumber:
"You were only here for 15 minutes! Why are you charging me $200?!?!"
"You weren't paying me for my time. You were paying to have an unclogged toilet. Your toilet is now unclogged."
A job well done is a job well done, regardless of how much time it takes. Why should someone be rewarded for taking too much time and punished for taking too little time? While Alyssa logged fewer hours than anticipated last month, it was enough to achieve the mission. I call that a giant win! I’m so grateful for her and what she brings to my work life.
It's amazing how different the world looks when we look at life through this lens. Pay for impact.....period. Life-altering stuff.
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