How To Keep Good Employees
By Tom Egelhoff
 One of the most difficult tasks of running
any business is the day-to-day communication with employees.
Most businesses can point to their very success or failure in
the marketplace by their ability to develop and keep loyal employees.
There is a tremendous cost involved in high employee turnover.
Lost time and profits due to mistakes, slow production output
as they learn the ropes and costs of retraining.
In this article I want to discuss some ways that you can develop
good employee relationships and keep them happy and loyal without
breaking the bank.
What do you expect of your employees?
Most employers would say, show up on time, do your job correctly,
don't goof off and don't complain. And my answer to this would
be, why should they do these things? Your answer would be, because
I'm paying them to do these things. Yes you are but is the dollar
the way to keep loyal employees? If the money is the only incentive
to work then I guarantee that your employees will depart your
little family as soon as they can find a higher paying position.
But aren't they always going to do that you ask. Some always
will of course -- but many will not if there is an even greater
incentive to stay. And there are many incentives that are much
more important than money. Let's examine a few.
What do your employees expect from you?
They expect to be laid off if business is bad. They expect
to be paid as little as possible to perform their job at their
highest level. They expect to have their pay docked if they have
to leave work for a family emergency. They expect to be rarely
recognized for the times they catch mistakes or save the company
money. They expect to be fired if they make a mistake or miss
work due to illness.
Do these points sound harsh? Maybe some are but these are
the very points that employees have told me over the past 30
years. There is no employer/employee relationship like there
were 50 years ago.
People in the 1950's and before would spend their entire working
life with one company. It was not unusual for someone to go to
work out of high school and rise to the executive level.
So what has changed in the past 50 years of so? Why don't
employees stay with companies as they once did? Let me tell you
why I think they don't.
Why should an employee stay with your company?
Many employees will remain loyal due to some "perks".
Health insurance is one. Vacation time is sometimes another.
But these are all costly to the employer. What I'm looking for
is what you can do to keep employees that don't incur additional
costs.
Many companies have an Employee of the Month program. I am
strongly opposed to this program for the following reasons. They
are often decided at the last minute. Many employees perform
at high levels and management may never hear about it. It's often
nothing more than a popularity contest.
There may be several tasks in your business that are difficult
to compare. How do you compare a checker and a shelf stocker
in a grocery store? One meets the public the other doesn't. One
handles money the other doesn't. And the worst part of the Employee
of the Month is that if you have 25 employees you have one winner
and 24 losers.
What I find that works much better is to find ways to publicly
recognize some accomplishment of every employee over a six-month
period. Depending on your business you may be able to do this
in a shorter period or a longer one may be required.
The point is to make sure that employees are rewarded in some
way for their efforts, no matter how big or how small those efforts
may be. The cost of this exercise to the company?...A little
time.
Fear of loss or expectation of gain
It's a traumatic experience to leave a job. You know what
you are leaving but you don't know what the next job will be
like. Will you enjoy it? Or, will you feel you've made a huge
mistake?
That's why fear of loss is so much more powerful than expectation
of gain. We don't want to leave our comfort zone unless we are
sure the results of the new position will enhance our lives.
What is the incentive to go to a higher paying job if you're
miserable? Doesn't it make more sense to stay where you are and
be happy? If your employee feels unappreciated with your company
why NOT go somewhere else and be unappreciated for more money?
On the other hand, however, if they do feel appreciated with
your company is the money enough to overcome that feeling of
un-appreciation? In many cases it isn't enough.
How far should an employee/employer relationship
go?
You don't need to adopt your employees. But, there are some
common sense things you should do to let them know that they
have a pretty good deal working for you. Let's look at some of
my favorites.
- Know your employee's goals
-For some it may be a new house or college for their kids. Whatever
it is you, as the employer, should be aware of it. This is the
real reason they are working for you. Not any company goal but
their own personal goals. You can't reach your company goals
unless they reach their personal goals.
- Keep private goals private and make
public goals public - If an employee shares a private
goal with you such as a family medical problem that requires
money for medication or a procedure, keep those things private.
Motivate that employee in private concerning this goal. On the
other hand employee goals that are not personal should be made
public to the company. Why? So that each employee can support
the others in the accomplishment of their individual goals.
- Create channels for letting management
know when someone is doing a good job. One of the
local companies I work with has little cards they call Love Nuggets.î
These are given to employees by anyone who sees someone doing
a good job. It may be a fellow employee or a member of management.
The employee who receives the cards can turn them in for merchandise
or cash. It's a great reward system that improves moral of all
the workers.
- Give public appreciation to employees
- As I mentioned above, find some reason to reward every person
in the company in a public way. Everyone from the janitor to
the CEO does something well. Reward it. It might be at an employee
meeting, company newsletter (not the best, many employees won't
read it), or by posting their accomplishments somewhere that
everyone can see them. Added bonus: Mail a notice of the accomplishment
to the employees house so the whole family can share in the success.
Many employees are lost at home because the spouse is interested
in more money and doesn't realize how much their spouse is appreciated
at work. Let family members know. Usually happy workers have
a better home life as well, which makes them better on the job.
- Share what's happening in the company
- Early in my career I worked for a company that would share
the company financial with us each month. They would show us
what we were doing well in and where the company was losing money.
Once we, the employees, knew where the problems were we set to
work to try and correct them. Then the following month we could
see the results of or efforts in the next report. It was truly
a team effort that worked very well.
- Ask your employees where they want
to go - If an employee wants to advance in the company
don't just pat them on the back and say, Go for it tiger.î
Set up a program for them to accomplish that goal. Give them
the tools and information they need to reach for the stars. I
know several employers who tell me if someone really good comes
along they will find a spot for that kind of person even if they
have to create one. Payroll costs not withstanding.
As the owner of a business, there is no more important task
than reducing turnover. It's rarely a matter of money to employees
in a small town.
The last word on keeping
good employees
The main point I'm trying to make is one that is a common
theme on this website. And that is to treat people, as you would
like to be treated. Friends do things for you that acquaintances
would not do. Why? Because your friends care about you and your
goals and dreams. That why they are your friends.
Your employees don't have to be your best friends. Nor are
you expected to socialize with they after work or on weekends.
But what you are expected to do is realize that your business
is going nowhere without them. Show them honest and since appreciation
and they will stay and make your dreams come true.
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the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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