Chapter 119: Reward Mechanism (1/4, requesting monthly votes)

Being Chinese, especially at such a young age, gave some employees at Penguin two reasons to disrespect Su Mu, their young boss.

Su Mu knew that the only way to win them over now was to offer these salespeople greater benefits. Only by providing sufficient incentives could he ensure they would not betray him.

A few former employees who had left Penguin to start their own company had tried to poach his staff by offering a thirty-percent commission. In response, Su Mu raised his own commission to thirty percent, denying them the chance to pull the rug out from under him. He would continue to pay out twenty percent regularly, with the remaining ten percent held until the end of the year. Combined with a guaranteed base salary, this was undeniably more lucrative than what the rival firm could offer. It pained him, of course—what boss doesn't want to exploit their employees?—but if he didn't do this, the company might collapse.

He would rather suffer a heavy financial loss than lose these salespeople. Having worked with the core group for over a month, he had already begun to build a foundation of trust. Mr. McKay, having just received a windfall, laughed and clapped his hands.

"Hahaha! Thank you, boss! Did you all hear that? We got a raise! I have full faith in Leon’s integrity; he has never once shorted me a single cent. Those guys who left our company never had good intentions to begin with. It’s hard to say if they’d even pay you on time, and it surely wouldn't be easy. Who would want to be managed by a bunch of people like that?"

Recalling the young white man who had just left, several people present subconsciously shook their heads. One remarked, "I’m not leaving. I’ve worked at several companies before, and I’ve never felt as comfortable as I do here. The management is very open."

"It’s not open; it’s non-existent," Su Mu interjected. "I have always felt that we are in an equal, mutually beneficial relationship. You help the company sell computers, and I pay you for it. The more you work, the more you earn; there’s no need for excessive constraints. I’ve recently sensed that the business of selling computers to companies and schools won't last forever. Others will catch on soon, and then many will compete with us for the market..."

McKay interrupted, asking with a surprised tone, "Really? What should we do then? I was counting on this job to help me buy a house in San Francisco!"

"Everyone, rest assured. I have already thought of a plan for the company’s long-term development. Even when the prime sales period fades in six months or a year, you will still have stable work. By then, everyone will be a veteran employee, and I will grant you equity—everyone will be a shareholder! Perhaps you don't know, but McKay has seen it: I invested in a supermarket in Los Angeles, and that company is now valued at five million dollars!"

When dealing with neighbors in Chinatown, the principle of keeping one's wealth hidden is sound, but when facing employees, demonstrating the boss's strength makes them feel more secure. This is why employees at large companies rarely resign. Compared to a ragtag, newly formed company, the strength Su Mu displayed was undoubtedly superior, which gradually shifted the employees from a state of hesitation toward staying with Penguin.

From increasing commissions to implementing equity incentives and laying out a vision for the company's future, Su Mu’s actions surprised the clever Mr. McKay. He had expected the company to be unsettled for a while, but looking at the staff now, they were no longer as restless and anxious as they had been just moments before.

A young black man in a suit asked, "Are we going to get the commissions for those previous orders, too? Is that true?"

Su Mu told him earnestly, "Absolutely true. And on top of that, if your performance is good, there will be additional bonuses!"

"That’s great! I just landed a big order for two hundred and sixty-seven computers!"

Su Mu felt immensely relieved. If he hadn't stabilized the group today, this young man might have taken that order to another company.

Mr. McKay, who served as the sales manager, clapped his hands and smiled. "Okay, get back to work! And remember to share this good news with the colleagues out in the field. We need to hustle! Who wants to go to Seattle with me tomorrow? I just got a lead on a business deal over the phone—there are dollars everywhere over there! I can't handle all that business by myself!"

"Me!"
"I want to go too!"
"Count me in."

Seeing the employees eagerly signing up, Su Mu realized that he no longer needed to assign tasks; these people could develop markets on their own. They even had business in Seattle now. He thought to himself that it was no wonder people always said "money drives progress."

This was a good sign. Once the crowd quieted down, he said, "Mr. McKay, please come to my office. We need to talk."

Nodding, McKay followed Su Mu into the modest office. McKay spoke first with a grin, "So, how was that? I played my part well, didn't I? Shouldn't you give me a raise?"

He was only joking, but Su Mu replied seriously, "Sure. As long as this year’s sales exceed six million dollars—and we only need two million more to reach that figure—I can give you a ten-thousand-dollar bonus. If next year’s sales reach twenty million, I’ll give you a fifty-thousand-dollar bonus. If they hit thirty million, I’ll buy you a house in San Francisco—a house worth at least one hundred thousand dollars."

This was the attitude one should have when asking for help.

Mr. McKay was naturally resourceful. Older than most of the staff, he was steady and professional. He could stake out a school for two days just to get a principal to buy computers, eventually selling dozens of units. The staff trusted his character, which was why Su Mu had seized the opportunity to promote him. Su Mu knew his own limitations; he couldn't keep this group in check on his own, but McKay served that purpose well. If sales reached thirty million, McKay would have earned him over two million; giving away a hundred thousand was a trivial cost. You have to invest to get a return.

For a moment, Mr. McKay couldn't sit still, his face filled with disbelief. "Really?"

"I swear it on my parents' honor. I’m not lying to you." Su Mu smiled. "The condition is that you manage these salespeople well. Do you think we can keep hiring? We have over seventy employees now, and I think we can take on more. The more people we have, the greater the chance of selling our products."

"…Fine. We’d better cover the whole United States! Let's sell the products in Hawaii or Alaska, and Canada too!" McKay was fired up. He continued, "We can definitely hire more. I know a few guys who are very capable; they can help me manage things if we split into several teams. That shouldn't be a problem. Boss, what if—I mean, what if sales break one hundred million?"

"Then it will be even more impressive… How does a three-hundred-thousand-dollar check plus company shares sound? Every cent I earn now is being reinvested into the company. If sales hit one hundred million, even one percent of the shares would be worth one hundred thousand dollars, and that could be worth even more in the future."

Hearing this, a wave of immense joy washed over McKay. He couldn't sit still anymore: "I’m going to Seattle this afternoon. I’ll make sure to capture the entire Washington state market!"

"Go ahead. But don't tell the other employees what I told you. Their dividends will be calculated differently…"

To win over these salespeople and grow the pie together, Su Mu had gone all out. In a trade industry where anyone can participate, being overly stingy was a recipe for failure. This was especially true for management figures like Mr. McKay, who could take many of the salespeople with him; he was far more valuable than the average employee.

Mobile phones hadn't yet been popularized on a large scale. Charging for ten hours for only twenty minutes of talk time was virtually useless. In small towns, you couldn't even get a signal, and even in big cities like New York, you had to tilt your head and hold the phone high to hunt for reception.

Su Mu asked Miss Amy, who handled the calls, to inform the staff currently out in the field about the salary increase. Whenever they checked into a new place, they were required to leave the hotel phone number with the company for easy contact.

It took only half an hour, and the process went smoothly. The company’s crisis was resolved, but Su Mu still had to negotiate with IBM. The scheduled meeting time was approaching, so he hailed a taxi.

Along the way, he looked forward to securing the agency deal. If he succeeded, he could utilize IBM’s logistics warehouses to ship goods directly to designated locations. For Penguin's expansion, this was undoubtedly a crucial step.