The economy was the top issue during the recent Presidential election. It was closely linked to that discussion in part because it involved creating jobs.
Business owners who are Republican party members spoke out about how high labor costs, including employee benefits, increased productivity, and obtaining more flexibility from employees, make companies less competitive.
The Democrats and their supporters focused on those with an annual income of $250,000 or more paying more taxes.
Elections are often a distraction from reality. You cannot grow your business if you don’t have the resources to do it.
There are two options for employees. You have two options: one, work for a business owner to help them build their dream. Two, you can become a business owner and start your own business.
The above should make sense. There seems to be one constant. Many business owners believe their employees must do more to make them happy. Too many employees think they should do more, so they don’t feel satisfied. Both need each other, and their relationships swing depending on whether or not the employees are feeling well. However, the bottom line is that you will experience employee turnover if your business has employees. These are some easy tips to manage employee turnover.
The business owner is the best place to begin. The final decision is made by the business owner. It is essential that they have a set of principles in place to help employees perform better.
1. Accept the term “communicate.”
Communication is a combination of two actions. Talking and listening are two actions that communicate. Listening is more important than talking. Talking can make it difficult to hear, so you should listen more than you talk. Talking can also reduce gossip, speculation, and, most importantly, anxiety. Business owners love to work in an atmosphere of concern because it motivates employees. You can choose the best style for you, but employees have options, and you cannot go far in a hostile environment.
2. Create robust systems
Robust systems and processes, also known as Standard Operating Procedures (SOP), are the first steps to success. They are the sole responsibility of the business owners. Most employees like to know what they need in order to succeed. A strong foundation and process create that foundation.
3. Cross-training and backup should be part of your SOP
Robust systems and processes can be the foundation of success. However, it is essential that all employees have access to the latest information and knowledge. You could be held hostage by a few key employees. Be proactive and use technology to make all information available.
4. Ask your employees to join the solution
While the employees provide the SOP, the owner sets the quality. Ask your employees to help you understand the thoughts of the owner. Are they happy to work there? Is feedback encouraged and rewarded? Are employees regularly asked by the owner what they think is working well? Which areas could use improvement?
5. Set and reward standards
Employees who believe that they are doing good work will be more likely to choose to stay. They need to feel valued and have high standards. Employees should also be rewarded for achievements, significantly if they exceed the standards.
Rewarding employees do not always have to be financial. To understand your employees’ motivation, ask them what rewards they would prefer. You may be surprised at how little your employees want or need, especially in these difficult economic times. It may be time to leave early so they can attend an event with their child. A small plaque could be placed on their desk to acknowledge their achievement, a simple cake for their birthday, or even a thank-you from the owner.
6. Recognize and reward high-performing employees
It’s a known fact that 20% of salespeople in any business have to be from the 20% who are not part of the sales team. Although it’s unfair and doesn’t make any sense, it’s what it is. The high performers will demand more rewards, which is normal. It’s a good idea to recognize individual and team success in all situations. It is essential to ensure that the environment is favorable. This will help those who aren’t performing well raise their standards and keep them from leaving. It is necessary to carefully plan any rewards. Also, it is crucial to communicate well with your team and individuals.
7. Training
It makes sense to establish reward standards. Employees want to be able to get the rewards they have negotiated. It takes a willingness to learn new skills and move out of your comfort zone in order to earn rewards. They need to have someone they can know from and give positive feedback.
8. Problems can be solved
The number one reason a business has an owner, or in their absence, a manager is to solve problems and make decisions. They need answers as soon as possible. Don’t let issues go unattended. It is better to deal with problems sooner than later.
9. Respect your employees
A handbook for employees is a great way to establish company policies and lower your chances of being sued. An excellent way to clarify what to do is to create an operations manual. It is a good idea to have employees create and maintain the operations manual with random testing by the owner to make sure it is all correct.
10. Get rid of the weak performers
Intolerant of poor performers can lower the business’ standards, reduce employee morale, and create a hostile workplace culture. A business owner is likely to have heard the expression, “You are only as good or weak as your weakest link.”
11. Take care when hiring
You agree that you are only as good or as weak as your weakest link. When hiring, seek out a “good match” with positive attitudes, values, and a work ethic.
There is no question. Customer is the lifeblood of any business. It takes courage to keep the blood moving around the body and keep it nourished. A successful business is built on the strength of its employees.
Andrew is a five-time business owner who helps entrepreneurs exit and enter business ownership. He can help owners sell or buy an existing business and consult about buying a franchise. He offers certified equipment and machinery appraisals, as well as business valuations.
Andrew is currently a Certified Business Intermediary(CBI) from the International Business Brokers Association. This credential is the highest awarded by both the IBBA as well as the Certified Business Brokers (CBB), designations from the California Association of Business Brokers. He is also a California Department of Real Estate Brokers License holder and Chair of the Sacramento Chapter of the California Association of Business Brokers.