We all want instant results. We look for the one diet that will instantly shred pounds. We are intrigued by the “get rich quick” promise. We want to have dinner delivered in minutes and we refuse to wait for anything. The only problem is, we are constantly disappointed. The meal is wrong, the diet doesn’t work, and multi-level marketing rarely makes you rich. The only real way to success is often referred to as the “compound effect.”
What is the Compound Effect?
Einstein referred to compound effects as the 8th wonder of the world. Darren Hardy made the concept popular with his book aptly titled, ‘The Compound Effect’. At 27 years old, Darren Hardy owned a a $50 million company and is now the publisher and editorial director of magazine called SUCCESS.
Hardy literally wrote the book on success and he defines the compound effect this way; “It’s the principle of reaping huge rewards from a series of small, smart choices. Success is earned in the moment to moment decisions that in themselves make no visible difference whatsoever, but the accumulated compounding effect is profound.” Essentially, the compound effect is the idea that small actions build up over time.
How does the Compound Effect work?
Our lives are a mirror image of the small actions that we make every day. The keywords are ‘small actions’. Let’s look at a simple example: “You have the choice of taking $1 million right now or a single penny that doubled in value every day for 31 days. If you picked the penny, you’d have $10,737,418.24 on day 31.” Not bad right? Thanks compound effect. If you want to start working out and you make a choice of working out for just 10 minutes a day and increase each day by just 2 minutes, by the end of the month you’ll have carved out time for a 1-hour workout session.
Whether we like it or not the compound effect is working in our lives at all times. This is good news for employers because it means the little things you do for your employees add up over time.
The Compound Effect in Business:
The right habits might seem routine, boring, and insignificant at the moment but they are extremely beneficial and are the best way to make a permanent change in our lives and business. In an interview, Hardy was asked the question, “What’s the one thing you want people to take away from The Compound Effect? His answer: That too many of us have lost sight of the simple but profound fundamentals of what it takes to be successful, and that we need to go back to, and master, the basic truths and core fundamentals of what it really takes to succeed.
The beautiful irony of the compound effect is that it starts with something incredibly simple and creates something unimaginable. When you apply this to your company, the possibilities are limitless.
How does this apply to Lifestyle benefits?
Your company IS your people -they are one in the same. When one succeeds, so does the other.
If you want to take care of your company, you must take care of your people. Lifestyle benefits work the same way. If you value your employees and want to take care of them, it starts with a small choice made consistently.
When it comes to employee benefits, every decision you make (no matter how small) has the potential to alter your employee engagement, company culture, and success of your business. Whether or not you’re actively supporting your employees, offering lifestyle support at work and at home, and showing you care about their individual needs has an impact on the “compound effect” of your business.
Hardy emphasizes the point with this simple question, “Have you ever been bitten by an elephant? How about a mosquito? It’s the little things that will bite you.”
You likely know exactly what those ‘mosquitos’ are in your business. Perhaps it’s benefits you don’t have that you see other companies offering. Maybe it’s an environment you struggle to create in the office. It’s a conversation you didn’t have, a question you didn’t ask, those small things that bite in the benefits world.
Remember, when it comes to using the compound effect “… the steps, in the moment, don’t feel significant.” This is why so many people quit their gym routine on the second week of January because they can’t see any new muscle yet. Or the HR team cuts out a best practice because it doesn’t seem significant. What we don’t realize is that sometimes it is those seemingly insignificant steps that actually create a radical difference.
In amongst the busyness of each day, it is those little best practices combined with consistency that get the biggest payoffs.
How to get started:
The beauty of the compound effect is that it starts off very small. So small, it seems insignificant – but you know better. If you’re ready to see the power of the compound effect in your company, here’s an action plan to get you started:
- Write down one or more lifestyle benefits you’d like to offer to your employees.
- Now write out the handful of small, seemingly inconsequential actions you can take to achieve that goal.
- Write down any roadblocks, no matter how small or seemingly inconsequential that can lead you away from that goal.
- Do the small positive steps. Don’t do the small negative steps.
That’s it. Pretty simple, right? That’s the magic sauce. No need to make it complicated, keep it simple, keep it consistent and watch it make a difference. Ultimately, the choice is yours. All of them are. The big ones and the small ones. You can overlook lifestyle benefits it for their perceived insignificance, or you can ignite the compound effect and put steps in place to show your team you care and take care of your people.