Pareto Principal

One of the best ways to motivate workers, is to increase their responsibilities and increase their salaries accordingly. This can be accomplished by a phenomenon known as the 80/20 rule, or the Pareto Principle which suggest that roughly 20% of the workforce is responsible for accomplishing 80% of the work. This is how Elon Musk was able to reduce the workforce at Twitter. Here is an example. Three employees work in a small group and they each earn $80,000 per year. The boss calls two of them into his office and says he has fired the third. From now on the remaining two will be responsible for all of the work. The third was earning $80,000 and half of his salary or $40,000 will be savings to the company but the remaining $40,000 will be divided between the other two employees. In other words, they will take on more responsibility but they will each see their pay rise from $80,000 to $100,000. A good supervisor will know who the productive workers are and his supervisor will do the same on up the line. This works in both private and public business. There is money to be saved in government programs like social security where there are 60,000 employees by using the Pareto Principle. Elon Musk reduced Twitter's workforce by about 80%, cutting the number of employees from roughly 7,500 to around 1,500. This was accomplished through layoffs and voluntary resignations. A general rule in business is if you want to get something done, give it to a busy person.