Strength in Numbers with Marcus Crigler

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

Marcus Crigler Episode 32

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 19:04

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 way
  • Structure compensation plans that drive performance
  • Understand why sales roles must outperform support roles
  • Avoid overpaying while still rewarding great employees

What 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 employee

Who This Episode Is For:

  • Real estate entrepreneurs with growing teams
  • Business owners who are questioning their payroll and margins
  • Operators who are struggling to stay profitable
  • Leaders who are redesigning compensation plans

Why 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: