By Jean Kruse / Guest Column
You often hear the phrase, “It’s cheaper to keep an existing customer than it is to attract a new one.” Another variation on that theme is that it is often more efficient to keep an employee than it is to hire a new one. The best employees usually have no difficulty finding a job that suits them better, so how do employers keep them?
It is not always a matter of money. Everyone appreciates a bigger paycheck, of course, but quality of life issues are increasingly taking precedence in today’s time-crunched world. Employees want careers that complement their lifestyles, rather than dictate them. And if they are that good, as noted earlier, chances are that “perfect job” – or at least one close enough to it – will find them.
Why do good employees quit? According to Travis Bradberry, president of TalentSmart and co-author of “Emotional Intelligence 2.0,” the reason good people quit is because of bad managers. Bradberry says there are nine things that bad managers do that cause good employees to quit (available at www.entrepreneur.com/article/249903):
- They overwork people
- They don’t recognize contributions and reward good work
- They don’t care about their employees
- They don’t honor their commitments
- They hire and promote the wrong people
- They don’t let people pursue their passions
- They fail to develop people’s skills
- They fail to engage their creativity
- They fail to challenge people intellectually
With that in mind, what can you do to keep those special employees on your staff? Here are some ideas:
Talk to them – and listen. Let go of any negative opinions you may have about your employees. Approach each of them as a source of unique knowledge with something valuable to contribute to the company. Remember that you are co-creating the achievement of a vision with them.
A solid employer-employee relationship begins with communication. Schedule regular meetings to discuss what’s going on with the company, what customers are talking about and other timely issues. If you’re considering investing in new equipment or offering new products or services, ask employees what they think of the idea. They may have perspectives or suggestions you hadn’t thought of.
Get to know your employees. Find out their goals and stressors, what excites them and how they define success. Show an interest in their well-being and, when appropriate, do what it takes to enable them to feel more fulfilled and better balanced.
Clearly communicate expectations. Employees can’t perform well or be productive if they don’t clearly know what it is they’re there to do – and the part they play in the overall success of the company. Make sure each employee knows what’s expected of him/her, and how performance is to be evaluated and rewarded. Annual reviews are the norm, but more frequent meetings may help identify areas for improvement or opportunities to adjust duties and expectations, particularly if your business is in the midst of change. That also includes providing a clear path for advancement within your company as it grows.
Be flexible. Look at your operations and see if it might be possible to make employees’ hours more flexible – perhaps working longer hours in exchange for an extra full day off, or allowing them to work from home on some days. Also give employees the choice of using vacation time little by little throughout the year, rather than in a single, one-time block. Of course, individual requests have to be coordinated with other workers to make sure all functions are covered.
Help them learn. Good employees always want to learn new skills. Consider offering tuition reimbursement or cost-sharing on job-related training and professional development courses. Yes, there’s a risk that the employee will take that newfound knowledge elsewhere, but your encouragement and support improves the odds that they’ll stay put.
Make sure employees have everything they need to do their jobs. Ask each staff member or the team as a whole if they have everything needed to be as competent as possible.
Make sure they are trained (and retrained) in problem solving and conflict resolution skills. These critical skills will help them interact better with you, their teammates, customers and suppliers.
Constantly ask how you are doing in your employees’ eyes. Use conversation starters such as, “It’s one of my goals to constantly improve myself as a manager. What would you like to see me do differently? What could I be doing to make your job easier?” Be sure to accept feedback graciously and to express appreciation.
Reward and recognize employees in meaningful ways. Celebrate both accomplishments and efforts to give employees working on long-term goals a boost.
Remember, your current employee may be the best person for the job. If so, do the right things to ensure their longevity.
To register for a local SCORE workshop on this or other business topics, or to get free local mentoring, go to the SCORE website (www.scorecr.org), and click on “local workshops” and then “request a meeting.”
Jean Kruse is a SCORE counselor and SCORE Iowa district president. She operated her own CPA firm for 13 years and in 1988, joined RSM McGladrey, a national firm, where she provided accounting and tax services to small business.
