Amazon supports "an even-handed federal framework for state sales tax collection." ~Paul Misener, Amazon Vice President for Global Public Policy
Generally, I try to steer away from political issues and, for that reason, I do not think I have ever written a column about taxation. However, I have reached my boiling point over the issue of imposing a tax on Internet sales.
Let me begin by saying that I do not like to pay taxes and wish the government could manage our money better. I have never recommended a tax increase before, but I am an advocate for a tax on Internet sales. Now I am not arguing that this is a necessary source of revenue – which it is – but rather, I am suggesting that levying a tax on Internet sales from out-of-state merchants can help level the playing field for small businesses.
Small businesses are the heart and soul of our country – retailers, in particular. Retailers have to compete with Internet companies in so many ways and they just cannot compete effectively if they are working with one hand tied behind their back.
By exempting out-of-state sellers from having to collect sales tax, you are giving these non-resident merchants a six to seven percent cost advantage. Now the government in Florida wants residents to voluntarily send the state taxes earned on Internet sales. You can guess how well that has worked out. Additionally, merchants who reside in Florida still have to pay sales taxes to residents on all goods sold via the Internet.
State governments should impose a tax on Internet sales of non-resident companies. California now collects taxes on large, out-of-state Internet providers and is expected to pull in over $300 million dollars in additional revenues. Seven other states have also closed the loophole and now collect sales tax from all Internet merchants serving their states.
The National Governors Association estimates that states are currently missing out on more than $22 billion each year in potential Internet sales tax revenue. Both the House and Senate have introduced bills to remedy this.
We need to do everything we can to promote small business retailers, especially since they do not have the luxury of being able to hire lobbyists to protect their interests like large retailers can. Imposing a tax on out-of-state Internet merchants will not give local small businesses an advantage but will just allow them to compete on a fairer playing field.
What can you do? Please write your state representatives and senators as well as their U.S. counterparts and request, not that they impose a new tax, but that they level the playing field between Internet businesses and small business retailers. We need small businesses to flourish in order for local economies to do well!
You can do this!
Sunday, December 18, 2011
Sunday, December 11, 2011
Making Your Business Unique
"Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even."~
Muhammad Ali
With so many businesses out there providing products and services similar to yours, it is critical to find that element that differentiates your company. In order to be successful, you must be able to stand out in the crowd. It is not always an easy thing to do, but it is immensely important, and each business owner should think about what makes their offering unique.
I recently attended a family function at The Peabody Hotel in Orlando. The hotel is a great property, and the famous Peabody ducks really make it special and unique.
In 1930, upon returning from a hunting trip, the general manager of The Peabody in Memphis had a tad too much to drink and decided to put some live ducks in the fountain of the hotel as a practical joke. It turned out, however, that the guests of the hotel loved the ducks, and they have been there ever since.
The five ducks now make their daily appearance at 11 a.m., arriving on a special elevator to be escorted down a red carpet by the official Duck Master to a John Phillips Sousa march. At 5 p.m., the processional is reversed as the ducks turn in for the night. A crowd of people is always there to observe this daily ritual.
Clearly, the processional of the ducks is unique in and of itself, but The Peabody has truly made the duck theme part of their identity. The theme appears everywhere, from the hotel’s logo to a large mural of three ducks painted on the roof of the hotel. Additionally, the gift shop is brimming with duck paraphernalia, everything from duck doorknockers to duck jewelry.
The ducks are one way The Peabody sets itself apart from countless other hotel franchises. What originally began as a practical joke has now become one of the most memorable elements of the guest experience.
Ben and Jerry’s ice cream is another example of a very unique business. In 1977, Ben Cohen and Jerry Greenfield completed a correspondence course on making ice cream from Penn State and started their first store in Vermont in 1978. To celebrate their first anniversary, they had a free cone day, an event that still occurs to this day. They are, of course, known for their quirky flavors – Chubby Hubby and Late Night Snack, for example. Additionally, they take 7.5 percent of the company’s before-tax profits to support community-oriented projects.
Ritz-Carlton provides another example of uniqueness in a business. The guest experience at a Ritz-Carlton is, by far, one of the best and most unique experiences around. They are known for their superb customer care.
Take some time to consider what makes your business different and think about how you can call attention to that aspect. To get you started, following are just a few examples of how you can highlight your business’ uniqueness:
1. Locally owned for X years.
2. A three-generation family business that has been serving our customers for over 30 years.
3. Providing leading-edge technology to our customers since 2000.
4. The only store located in [an area] that can help you with [your product or service].
5. Have been in the same location for X number of years.
6. The only independent store that provides [a product or service] in [an area].
Now go out and make sure you know what makes your business unique and remember to emphasize that uniqueness in all your customer interactions.
You can do this.
Muhammad Ali
With so many businesses out there providing products and services similar to yours, it is critical to find that element that differentiates your company. In order to be successful, you must be able to stand out in the crowd. It is not always an easy thing to do, but it is immensely important, and each business owner should think about what makes their offering unique.
I recently attended a family function at The Peabody Hotel in Orlando. The hotel is a great property, and the famous Peabody ducks really make it special and unique.
In 1930, upon returning from a hunting trip, the general manager of The Peabody in Memphis had a tad too much to drink and decided to put some live ducks in the fountain of the hotel as a practical joke. It turned out, however, that the guests of the hotel loved the ducks, and they have been there ever since.
The five ducks now make their daily appearance at 11 a.m., arriving on a special elevator to be escorted down a red carpet by the official Duck Master to a John Phillips Sousa march. At 5 p.m., the processional is reversed as the ducks turn in for the night. A crowd of people is always there to observe this daily ritual.
Clearly, the processional of the ducks is unique in and of itself, but The Peabody has truly made the duck theme part of their identity. The theme appears everywhere, from the hotel’s logo to a large mural of three ducks painted on the roof of the hotel. Additionally, the gift shop is brimming with duck paraphernalia, everything from duck doorknockers to duck jewelry.
The ducks are one way The Peabody sets itself apart from countless other hotel franchises. What originally began as a practical joke has now become one of the most memorable elements of the guest experience.
Ben and Jerry’s ice cream is another example of a very unique business. In 1977, Ben Cohen and Jerry Greenfield completed a correspondence course on making ice cream from Penn State and started their first store in Vermont in 1978. To celebrate their first anniversary, they had a free cone day, an event that still occurs to this day. They are, of course, known for their quirky flavors – Chubby Hubby and Late Night Snack, for example. Additionally, they take 7.5 percent of the company’s before-tax profits to support community-oriented projects.
Ritz-Carlton provides another example of uniqueness in a business. The guest experience at a Ritz-Carlton is, by far, one of the best and most unique experiences around. They are known for their superb customer care.
Take some time to consider what makes your business different and think about how you can call attention to that aspect. To get you started, following are just a few examples of how you can highlight your business’ uniqueness:
1. Locally owned for X years.
2. A three-generation family business that has been serving our customers for over 30 years.
3. Providing leading-edge technology to our customers since 2000.
4. The only store located in [an area] that can help you with [your product or service].
5. Have been in the same location for X number of years.
6. The only independent store that provides [a product or service] in [an area].
Now go out and make sure you know what makes your business unique and remember to emphasize that uniqueness in all your customer interactions.
You can do this.
Sunday, December 4, 2011
Dealing with Disruptive Personal Habits of Staff
"One ought to hold on to one''s heart; for if one lets it go, one soon loses control of the head too."~Friedrich Nietzsche
One of the most difficult conversations a manager will ever have with an employee is when they have to address personal habits like hygiene. Many managers think this is too personal to discuss, but you just do not have the luxury of looking the other way. Poor personal hygiene can negatively impact your business by making the environment distasteful, annoying co-workers and even affecting how your customers see your business. Ignoring the problem only rewards the behavior and undermines your credibility as a leader and a manager.
I just recently had to help two entrepreneurs address issues where an employee’s offensive body odor was causing problems for their businesses. In one case, the server/cook’s body odor was affecting the entire restaurant.
Although the whole staff knew about the problem, the employee just did not seem to be aware of it nor did he recognize the effect his hygiene was having on his co-workers and the restaurant patrons. Because the employee was unaware of the problem, the situation required that the manager use a certain amount of sensitivity when initially addressing the situation.
When handling situations like these, it is so important to talk about the behavior and not the person. It is easier for the employee to hear that a behavior must be changed rather than the person has to change. This approach is also much less threatening to the employee.
My suggestion would be to invite the employee to your office and ask them if it is a good time to give them some “feedback.” The employee will probably be anxious about the type of feedback you are about to share, so you will want to start by telling them how valuable they are to the company. Next, the employee needs to hear that you feel very, very uncomfortable giving this type of feedback.
During your discussion, you need to be as direct as possible. Getting straight to the point is critical. Dancing around the topic will just weaken the point that you are trying to make. You might say that their body odor is affecting the business and you feel sad bringing this up to them, but it is very important to them and the business. Do not mention the complaints you have gotten from their colleagues. Sharing that information serves no useful purpose. The employee will be embarrassed already and this would just pile it on unnecessarily.
Before ending the conversation, you need to talk about how changing this behavior will affect the entire organization and what the ramifications will be if they do not change. In some cases, an employee may have a medical condition that causes their body odor, but you should not assume this is the case. If it is within the employee’s control to correct, they should be held accountable for doing so. If the employee says that a medical condition is the cause, however, ADA may dictate how the situation can be handled.
With these types of conversations, it is sometimes helpful to write out your main points and practice making these points in advance of meeting with the employee. Again, this is going to be uncomfortable, but practicing what you are going to say will help make the situation more tolerable.
Now go out and make sure that you have a plan in place so you are prepared in the event you have to address a difficult hygiene problem.
You can do this!
One of the most difficult conversations a manager will ever have with an employee is when they have to address personal habits like hygiene. Many managers think this is too personal to discuss, but you just do not have the luxury of looking the other way. Poor personal hygiene can negatively impact your business by making the environment distasteful, annoying co-workers and even affecting how your customers see your business. Ignoring the problem only rewards the behavior and undermines your credibility as a leader and a manager.
I just recently had to help two entrepreneurs address issues where an employee’s offensive body odor was causing problems for their businesses. In one case, the server/cook’s body odor was affecting the entire restaurant.
Although the whole staff knew about the problem, the employee just did not seem to be aware of it nor did he recognize the effect his hygiene was having on his co-workers and the restaurant patrons. Because the employee was unaware of the problem, the situation required that the manager use a certain amount of sensitivity when initially addressing the situation.
When handling situations like these, it is so important to talk about the behavior and not the person. It is easier for the employee to hear that a behavior must be changed rather than the person has to change. This approach is also much less threatening to the employee.
My suggestion would be to invite the employee to your office and ask them if it is a good time to give them some “feedback.” The employee will probably be anxious about the type of feedback you are about to share, so you will want to start by telling them how valuable they are to the company. Next, the employee needs to hear that you feel very, very uncomfortable giving this type of feedback.
During your discussion, you need to be as direct as possible. Getting straight to the point is critical. Dancing around the topic will just weaken the point that you are trying to make. You might say that their body odor is affecting the business and you feel sad bringing this up to them, but it is very important to them and the business. Do not mention the complaints you have gotten from their colleagues. Sharing that information serves no useful purpose. The employee will be embarrassed already and this would just pile it on unnecessarily.
Before ending the conversation, you need to talk about how changing this behavior will affect the entire organization and what the ramifications will be if they do not change. In some cases, an employee may have a medical condition that causes their body odor, but you should not assume this is the case. If it is within the employee’s control to correct, they should be held accountable for doing so. If the employee says that a medical condition is the cause, however, ADA may dictate how the situation can be handled.
With these types of conversations, it is sometimes helpful to write out your main points and practice making these points in advance of meeting with the employee. Again, this is going to be uncomfortable, but practicing what you are going to say will help make the situation more tolerable.
Now go out and make sure that you have a plan in place so you are prepared in the event you have to address a difficult hygiene problem.
You can do this!
Sunday, November 27, 2011
Making Meetings Work
"Football incorporates the two worst elements of American society: violence punctuated by committee meetings."~George Will
It is important to limit the amount of time you spend attending meetings. The most successful meetings are ones where you need to give or receive critical information or where face-to-face interaction is important. One entrepreneur whom we assist runs from one meeting to another and hardly has time to breathe. When asked the value of all these meetings, his eyes just roll. Here is a very hard-working entrepreneur who just has a case of "meeting mania." By meeting mania I mean a belief that one has to attend a series of never-ending and usually, very unproductive meetings.
Before you schedule a meeting, make sure that one is really needed. An update or status meeting can generally be done with email. A worthwhile meeting must have an interactive component; otherwise, an email or memo will suffice.
There are four rules for planning great meetings. First, insure that there is a great reason to have a meeting in the first place. Meetings have a way of defying death and, once started, are hard to extinguish. So if you must have a meeting, make sure there is a darn good reason for it. Do not have a meeting just to have a meeting.
The second rule is to insure that there is a detailed agenda. An agenda keeps you on task and makes clear what subjects will be covered. The agenda should be mailed to participants ahead of time and it should clearly state what the participants need to bring to the meeting. Too often I see folks show up for meetings expecting to be spoon-fed. It is much better to get people to do some homework on the agenda items before they come to the meeting. Preparation ahead of time goes a long way toward insuring an effective and efficient meeting where people feel they have accomplished something worthwhile.
Setting up time limits for the meeting is the third rule. State the starting and ending time for each meeting on the agenda and stick to those times. I always include the following meeting rule on the agenda: "The time available, however much there is, will be filled with discussion on the agenda". A one-hour meeting frequently is much more effective than a three-hour meeting as participants know they must get through in a timely fashion.
The final rule is to make sure that the person in charge of the meeting can keep the group on task and also has the skills needed to deal with the thorny interpersonal issues that arise. Frequently, when someone in a meeting feels threatened, he or she closes down. The meeting leader must be able to recognize this and tactfully bring this person back into the conversation.
Meetings can be major time wasters. Summarized are the four simple rules to help plan and conduct worthwhile meetings:
Have a good reason to schedule a meeting.
Make sure there is a well-defined agenda.
Set time limits for the meeting.
Select a leader who will keep the group on task and is sensitive to the needs of each member.
If you follow these rules, your meetings will be shorter, more valuable, and possibly more fun. You can overcome meeting mania and save a lot of time in the process.
You can do this!
It is important to limit the amount of time you spend attending meetings. The most successful meetings are ones where you need to give or receive critical information or where face-to-face interaction is important. One entrepreneur whom we assist runs from one meeting to another and hardly has time to breathe. When asked the value of all these meetings, his eyes just roll. Here is a very hard-working entrepreneur who just has a case of "meeting mania." By meeting mania I mean a belief that one has to attend a series of never-ending and usually, very unproductive meetings.
Before you schedule a meeting, make sure that one is really needed. An update or status meeting can generally be done with email. A worthwhile meeting must have an interactive component; otherwise, an email or memo will suffice.
There are four rules for planning great meetings. First, insure that there is a great reason to have a meeting in the first place. Meetings have a way of defying death and, once started, are hard to extinguish. So if you must have a meeting, make sure there is a darn good reason for it. Do not have a meeting just to have a meeting.
The second rule is to insure that there is a detailed agenda. An agenda keeps you on task and makes clear what subjects will be covered. The agenda should be mailed to participants ahead of time and it should clearly state what the participants need to bring to the meeting. Too often I see folks show up for meetings expecting to be spoon-fed. It is much better to get people to do some homework on the agenda items before they come to the meeting. Preparation ahead of time goes a long way toward insuring an effective and efficient meeting where people feel they have accomplished something worthwhile.
Setting up time limits for the meeting is the third rule. State the starting and ending time for each meeting on the agenda and stick to those times. I always include the following meeting rule on the agenda: "The time available, however much there is, will be filled with discussion on the agenda". A one-hour meeting frequently is much more effective than a three-hour meeting as participants know they must get through in a timely fashion.
The final rule is to make sure that the person in charge of the meeting can keep the group on task and also has the skills needed to deal with the thorny interpersonal issues that arise. Frequently, when someone in a meeting feels threatened, he or she closes down. The meeting leader must be able to recognize this and tactfully bring this person back into the conversation.
Meetings can be major time wasters. Summarized are the four simple rules to help plan and conduct worthwhile meetings:
Have a good reason to schedule a meeting.
Make sure there is a well-defined agenda.
Set time limits for the meeting.
Select a leader who will keep the group on task and is sensitive to the needs of each member.
If you follow these rules, your meetings will be shorter, more valuable, and possibly more fun. You can overcome meeting mania and save a lot of time in the process.
You can do this!
Sunday, November 20, 2011
Letting Staff Know Their Authority
"Every man should keep a fair-sized cemetery in which to bury the faults of his friends."~Henry Ward Beecher
One of the most important things for a decision maker is to know the limits of his or her authority. That is, when they have to come to you or their supervisor for approval before a final decision can be made—as with expenditures, staffing decisions or disciplinary actions, for example. Unless you clearly specify these limits, you can not expect them to know what they are.
Knowing how much authority they have to make decisions is critical to a manager’s ability to do their job efficiently. You just do not want your staff coming to you for permission on every decision. This is such a terrible waste of time for both you and the employee.
I was working with a very successful technology business and had been meeting with the managers to evaluate the effectiveness of the staff. During one of these discussions, a new senior manager started talking about the trouble he had been having with a problem employee.
When I asked the manager why he did not do anything about the employee, he said he just did not have the authority. As a side note, he also commented that he did not have the authority to make any decisions about spending money either. I asked him how he knew this and he said he was never told that he could make these or any other decisions.
As I probed further into the situation, the manager said he had never initiated a conversation about authority with the owner because he did not have the courage to broach the subject. He did say, though, that he hoped the owner would tell him soon what his decision parameters were.
I wish I could say this was an isolated example, but I see situations like these on a regular basis. In these cases, I believe the entrepreneurs or managers are hesitant to give their staff any authority because they do not know if they can trust them to make good decisions.
The problem with this mindset is that employees can be coached in their decision-making, but if they are never given the opportunity, they will never learn how to make good decisions. In the event a lower-level manager has been given decision-making authority, received coaching and you still can not trust their judgment, it may be time to consider that the employee is no longer serving the needs of the company.
Now go out and make sure your employees clearly understand the extent of their authority. The sooner you convey this information, the better. Obviously, these parameters will change as the employee becomes more experienced and proves again and again that you can trust their decisions.
You can do this!
One of the most important things for a decision maker is to know the limits of his or her authority. That is, when they have to come to you or their supervisor for approval before a final decision can be made—as with expenditures, staffing decisions or disciplinary actions, for example. Unless you clearly specify these limits, you can not expect them to know what they are.
Knowing how much authority they have to make decisions is critical to a manager’s ability to do their job efficiently. You just do not want your staff coming to you for permission on every decision. This is such a terrible waste of time for both you and the employee.
I was working with a very successful technology business and had been meeting with the managers to evaluate the effectiveness of the staff. During one of these discussions, a new senior manager started talking about the trouble he had been having with a problem employee.
When I asked the manager why he did not do anything about the employee, he said he just did not have the authority. As a side note, he also commented that he did not have the authority to make any decisions about spending money either. I asked him how he knew this and he said he was never told that he could make these or any other decisions.
As I probed further into the situation, the manager said he had never initiated a conversation about authority with the owner because he did not have the courage to broach the subject. He did say, though, that he hoped the owner would tell him soon what his decision parameters were.
I wish I could say this was an isolated example, but I see situations like these on a regular basis. In these cases, I believe the entrepreneurs or managers are hesitant to give their staff any authority because they do not know if they can trust them to make good decisions.
The problem with this mindset is that employees can be coached in their decision-making, but if they are never given the opportunity, they will never learn how to make good decisions. In the event a lower-level manager has been given decision-making authority, received coaching and you still can not trust their judgment, it may be time to consider that the employee is no longer serving the needs of the company.
Now go out and make sure your employees clearly understand the extent of their authority. The sooner you convey this information, the better. Obviously, these parameters will change as the employee becomes more experienced and proves again and again that you can trust their decisions.
You can do this!
Sunday, November 13, 2011
Sell Value Not Cost
"Customer needs have an unsettling way of not staying satisfied for very long."~Karl Albrecht
There is no question that sales are the heart and soul of a business. This is not to say that you should ignore profits, which are absolutely essential, but you will not have profits unless you produce revenue.
Part of my job is to refer clients of ours to other businesses that may be able to help them. We do not receive any commission or benefit for making the referral other than the knowledge that doing so will likely help both businesses.
Several clients were in need of web services, and I had worked previously with a very savvy web designer. He has many years experience in the business and is especially skilled at search engine optimization. The prices he charges are also very reasonable, so I thought he would be great for these clients.
I made the referrals, and in each case, the web designer prepared an estimate complete with a portfolio of his past work. After some time though, he had not heard back from any of them. With his blessing, I wrote a few of these potential customers to find out why they had not followed up with him.
When I heard back, every one of them said that they could not afford his services, though none of them said specifically that he was too expensive. They all said his quality was great and his fees were very reasonable but that they could not afford what he was offering.
After we had a chance to go through these responses, the reason he had not gotten any of these jobs became clear. He was only selling the cost, not the value or the benefits of his services. The customers were seeing his services only as a cost that offered very little improvement over what they already had.
The web designer had incorrectly assumed that potential customers already recognize the value of an improved website. We are now working with him to help develop a pitch that showcases this value. Instead of highlighting costs, his new sales approach will focus on the benefits of a new website to the customer’s business, including improved sales.
Now go out and make sure all your sales materials highlight the value your product or service brings. You can do this a number of ways. The key is conveying that value clearly and succinctly. One possibility is to quantify for the customer how your product or service can improve their bottom line. If it helps them increase sales by 1 percent, for example, that is so many more dollars going to their bottom line that will reduce the cost. Additionally, sometimes you can clearly show that by spending this money on a project you will incur significant cost savings. The point is that you must communicate value not costs.
You can do this.
There is no question that sales are the heart and soul of a business. This is not to say that you should ignore profits, which are absolutely essential, but you will not have profits unless you produce revenue.
Part of my job is to refer clients of ours to other businesses that may be able to help them. We do not receive any commission or benefit for making the referral other than the knowledge that doing so will likely help both businesses.
Several clients were in need of web services, and I had worked previously with a very savvy web designer. He has many years experience in the business and is especially skilled at search engine optimization. The prices he charges are also very reasonable, so I thought he would be great for these clients.
I made the referrals, and in each case, the web designer prepared an estimate complete with a portfolio of his past work. After some time though, he had not heard back from any of them. With his blessing, I wrote a few of these potential customers to find out why they had not followed up with him.
When I heard back, every one of them said that they could not afford his services, though none of them said specifically that he was too expensive. They all said his quality was great and his fees were very reasonable but that they could not afford what he was offering.
After we had a chance to go through these responses, the reason he had not gotten any of these jobs became clear. He was only selling the cost, not the value or the benefits of his services. The customers were seeing his services only as a cost that offered very little improvement over what they already had.
The web designer had incorrectly assumed that potential customers already recognize the value of an improved website. We are now working with him to help develop a pitch that showcases this value. Instead of highlighting costs, his new sales approach will focus on the benefits of a new website to the customer’s business, including improved sales.
Now go out and make sure all your sales materials highlight the value your product or service brings. You can do this a number of ways. The key is conveying that value clearly and succinctly. One possibility is to quantify for the customer how your product or service can improve their bottom line. If it helps them increase sales by 1 percent, for example, that is so many more dollars going to their bottom line that will reduce the cost. Additionally, sometimes you can clearly show that by spending this money on a project you will incur significant cost savings. The point is that you must communicate value not costs.
You can do this.
Sunday, November 6, 2011
Crisis in Employment is Coming
"Treat employees like partners, and they act like partners."~Fred A. Allen
Eventually we will emerge from this sluggish economy, I promise. We will see growth again, and when the economy does begin to turn around, retaining your workforce will become absolutely vital to your business. According to MetLife’s recent study of employee benefit trends, businesses need to return to a focus on employee satisfaction.
When the economy slipped into recession, many workers were laid off, and those that remained were left to pick up the slack. While corporate profits have soared, employee satisfaction has tanked as workloads increased and morale plummeted. The MetLife study revealed that 33 percent of the workers surveyed expected to have a new job in the next 12 months. It seems these workers would have left right then if they could have, but they stayed put only because they knew there were very few jobs out there.
The MetLife study also revealed that, in 2010, the percentage of employees who said they felt loyal to the company was 44 percent as compared to 62 percent in 2008. Despite the dramatic decline, employers have not seemed to recognize this change. The study showed that 54 percent of employers believe their employees feel a strong sense of loyalty. Even more concerning is that only 22 percent of these employers said employee retention was their number one priority.
Turnover is costly and the loss of employees is going to be a severe problem, but employers who start taking steps now can minimize turnover and its damaging effects. First and foremost, employers must make employee retention a high priority for the company. Profits are super, but your staff is your lifeblood and you need to hold on to them.
Second, an employee morale survey can provide great insight into how you can help improve job satisfaction. The key here is that the survey should be conducted by a neutral, outside party. The staff will feel more comfortable responding this way, and you will get honest answers, which of course, is the outcome you want.
A third step would be to use your survey results to develop a plan for improving employee moral in the coming year. Using the survey results, you can establish a benchmark for measuring improvement over time. Benchmarks can also help you determine how much effort you will need to commit in order to reach the desired amount of improvement.
An employee appreciation program makes a great addition to your plan for improving morale, and it is easy to implement. Basically, managers should just go out of their way to show their appreciation for their employees. Taking the staff for granted can not be tolerated.
To help provide insight into what your staff needs and wants, establish an employee committee. You could not ask for a better resource, and the committee members can provide recommendations and share ideas about what would make your staff more satisfied in their jobs. Sure, the subject of salary might come up, but awarding salary increases is a whole lot cheaper than training a new worker.
Whatever employee retention tactics you choose to implement, it is important that you adjust your strategy to fit the different generations. Gen Y (born after 1980) responds to random acts of appreciation and wants to know that the company they work for has a social conscience. Baby Boomers, on the other hand, just need you to reassure them that they are secure in their job until they are ready to retire.
Now go out and make employee satisfaction a high priority at your company and commit to developing a plan to improve it.
You can do this.
Eventually we will emerge from this sluggish economy, I promise. We will see growth again, and when the economy does begin to turn around, retaining your workforce will become absolutely vital to your business. According to MetLife’s recent study of employee benefit trends, businesses need to return to a focus on employee satisfaction.
When the economy slipped into recession, many workers were laid off, and those that remained were left to pick up the slack. While corporate profits have soared, employee satisfaction has tanked as workloads increased and morale plummeted. The MetLife study revealed that 33 percent of the workers surveyed expected to have a new job in the next 12 months. It seems these workers would have left right then if they could have, but they stayed put only because they knew there were very few jobs out there.
The MetLife study also revealed that, in 2010, the percentage of employees who said they felt loyal to the company was 44 percent as compared to 62 percent in 2008. Despite the dramatic decline, employers have not seemed to recognize this change. The study showed that 54 percent of employers believe their employees feel a strong sense of loyalty. Even more concerning is that only 22 percent of these employers said employee retention was their number one priority.
Turnover is costly and the loss of employees is going to be a severe problem, but employers who start taking steps now can minimize turnover and its damaging effects. First and foremost, employers must make employee retention a high priority for the company. Profits are super, but your staff is your lifeblood and you need to hold on to them.
Second, an employee morale survey can provide great insight into how you can help improve job satisfaction. The key here is that the survey should be conducted by a neutral, outside party. The staff will feel more comfortable responding this way, and you will get honest answers, which of course, is the outcome you want.
A third step would be to use your survey results to develop a plan for improving employee moral in the coming year. Using the survey results, you can establish a benchmark for measuring improvement over time. Benchmarks can also help you determine how much effort you will need to commit in order to reach the desired amount of improvement.
An employee appreciation program makes a great addition to your plan for improving morale, and it is easy to implement. Basically, managers should just go out of their way to show their appreciation for their employees. Taking the staff for granted can not be tolerated.
To help provide insight into what your staff needs and wants, establish an employee committee. You could not ask for a better resource, and the committee members can provide recommendations and share ideas about what would make your staff more satisfied in their jobs. Sure, the subject of salary might come up, but awarding salary increases is a whole lot cheaper than training a new worker.
Whatever employee retention tactics you choose to implement, it is important that you adjust your strategy to fit the different generations. Gen Y (born after 1980) responds to random acts of appreciation and wants to know that the company they work for has a social conscience. Baby Boomers, on the other hand, just need you to reassure them that they are secure in their job until they are ready to retire.
Now go out and make employee satisfaction a high priority at your company and commit to developing a plan to improve it.
You can do this.
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