Three tips to help retain your best employees
Employee retention is a hot topic for small business owners. How do you keep your best talent? The time and effort required to find the right people is no small matter. With so many things vying for your attention, you need to know that you can depend on your best employees.
If money were no object, the solution would be simple. In the real world, though, resources are limited. Fortunately, there are things besides money that can help with employee retention.
Employee retention is a hot topic for small business owners. How do you keep your best talent? The time and effort required to find the right people is no small matter. With so many things vying for your attention, you need to know that you can depend on your best employees.
If money were no object, the solution would be simple. In the real world, though, resources are limited. Fortunately, there are things besides money that can help with employee retention.
Here are three low-cost ways to help you keep your high-performing employees.
Regular One-to-One Meetings
It’s hard to overstate the value of meeting one-on-one with your employees. Especially when held on a regular basis, these sessions provide an opportunity for you to hear the concerns, struggles, and accomplishments directly from your employee. In return, the employee has an opportunity to bring up issues they may not be comfortable with in a group setting. One-to-Ones are a powerful way to stay connected with your employees and address issues as they arise. Rather than guessing as to how someone is feeling about their work or trying to solve problems that don’t exist, you get accurate, real-time information. What’s more, your employee knows you’re paying attention and that you care.
Strong Core Values
Ideally, your business has a well-developed set of core values and you make those values known when you are interviewing potential employees. Provided the core values are consistently demonstrated, your company should have a culture that is clearly defined. Not only does that make it easier for a potential employee to know if he or she is a good fit, it also makes it easier for that person to stay. Company cultures vary widely, and while another organization might be able to offer better pay, it’s unlikely it can offer the same workplace environment that attracted your employee in the first place.
Recognize Achievement
One way to recognize employee achievement is through bonuses, but if financial rewards aren’t possible, don’t give up on the idea of recognition. Small gestures can go a long way towards making employees feel valued—and people who feel appreciated for their efforts are much more likely to stay. Something as simple as an email expressing your gratitude or the gift of an extended lunch hour can make a big difference for your employees.
You want your business to be exceptional, and we have tools to help. Learn more about the rules for growth that will guide you through the current stage your business is in and propel you towards greater growth and success. Start by finding out your Stage of Growth using this quick calculator. Then visit our Stage Guidebook Series and select the book that’s right for you. Not only will you find out more about best practices for keeping great talent, but you’ll also learn strategies for every dimension of your business—from finance to marketing to process improvement. You don’t have to reinvent the wheel. Discover the rules of growth for your business today!
Does your team understand the difference between profit and revenue?
Running a profitable business is a big challenge. Fifty percent of businesses started in the U.S. fail within the first 5 years. Why? Because they are unable to create a profitable business model.
While there are many different factors that play into running a profitable business, in this article, we’re going to focus on just one simple fact: the difference between revenue and profit. The distinction matters, and it helps immensely if the entire team has the same understanding of what profit is.
Running a profitable business is a big challenge. Fifty percent of businesses started in the U.S. fail within the first 5 years. Why? Because they are unable to create a profitable business model.
While there are many different factors that play into running a profitable business, in this article, we’re going to focus on just one simple fact: the difference between revenue and profit. The distinction matters, and it helps immensely if the entire team has the same understanding of what profit is.
If you are the owner, it might seem like profit is an obvious fact, but that assumption could be hurting you. Profit is often confused with revenue, and understanding the difference empowers each employee to help achieve a profitable business.
Defining revenue and profit
Revenue refers to the money that you collect. This is the money that comes in from customers in exchange for your product or service. Revenue is the most visible number—it’s the number on all the jobs you’re winning and the number on the checks that you get from customers. Because it’s the money coming in, it’s the number everyone sees.
Revenue is also the number that is the simplest. The money that a business receives is straightforward, especially in comparison to the various expenses it must cover. Every business owner knows that if there’s going to be any money left at the end of the day, revenue must be enough to cover all expenses.
Profit, on the other hand, is a financial gain—essentially, it’s the difference between the amount earned and the amount spent in buying, operating, or producing something. Profit is the difference between the amount of money that is earned and the amount that is spent.
Profit is not as simple or straightforward as revenue; it can be challenging to calculate. A business owner must account for fixed and variable expenses, known expenses and ones that just pop up. Profit in one month doesn’t guarantee profit in the next, so profitable months must be able to cover those that aren’t. (For more on the different between profit and revenue, see our book Business Model, available on Amazon.)
Misunderstandings concerning revenue and profit
A common area of misunderstanding is for employees to think that the business owner gets to keep all of the money that they collect (revenue). Oftentimes, this is due to the fact that employees are on the front lines of interactions with customers and therefore see or are involved with the transactions that bring in cash. They may not be as aware of all the ways in which the business spends money—beginning with salaries but extending to areas such as rent, insurance, cost of goods, supplies, utilities, and more.
A related misunderstanding is when employees assume that if revenue is coming in, profit is guaranteed. Business owners know that’s not the case, but it’s a fact that can be easily overlooked. If revenue is the end of the story for employees, they don’t have the information they need to make informed decisions about how the company should operate.
Benefits to helping your employees understand the difference between revenue and profit
One of the primary benefits to employees understanding the difference between revenue and profit is that they are empowered to make decisions that increase profitability. Decisions made at every level of the organization determine profitability, so it makes a tangible difference when everyone shares the same understanding.
“One of the primary benefits to employees understanding the difference between revenue and profit is that they are empowered to make decisions that increase profitability.”
For example, an employee who is sourcing materials for the company’s new widget will be looking not just at the cost of raw materials, but also their long-term durability. Why? Because a better, longer-lasting widget reduces warranty claims and benefits the company in the long run, and the employee understands that better profit margins are directly tied to the viability of the company. The employee begins to make decisions more like the business owner.
Another advantage is that the employees are more in-tune with reality. Reality for a small business owner means that they must be making a profit in order to fund the business and keep the doors open. If an employee has a wrong idea about the motivation to make money—thinking it’s for greed rather than the ability to continue running—they’re not as likely to be engaged.
Employees might think that as long as the company is selling its goods and the lights are on in the building, everything is fine; their jobs are secure. But it’s quite possible they’re not considering factors like how it’s necessary to bring in enough revenue during busy times to make up for slow times. Or that, while expenses can fluctuate a great deal, it’s always difficult to raise prices.
In general, most businesses are less profitable than people assume. Employees aren’t always aware of how things like insurance premiums, payroll taxes, and overhead can eat away at profits. Being clear on what profits are and how they are affected will help employees at every level make smart choices every day.
Profitability matters to everyone, not just the owner. Without profit, there is no company. Employees who understand that fact will feel more invested and be more engaged. We encourage you to share the simple definitions of revenue and profit from this article with your team. Adopting clear language that has a shared, consistent meaning to the entire organization provides a framework for everyone to communicate about profit.
The differences between revenue and profit are part of the Business Model program – one of the 11 elements of an exceptional business. To learn more about these concepts, get a copy of the Business Model book on Amazon. Our mission is to multiply the number of exceptional businesses globally. Join the conversation on LinkedIn.
Four elements of new-hire training you can’t afford to skip
When you bring on a new employee to your team, the first few weeks are extremely important. Those initial impressions and moments can shape the entire trajectory of that person’s tenure with the company—whether it’s brief or lengthy, good or bad, mutually beneficial or filled with conflict.
Employers aren’t likely to skip foundational things with a new employee, like setting up their computer or giving them a copy of the employee handbook. There are other steps, though—steps often overlooked—that are just as critical to setting the stage for an employee’s success.
When you bring on a new employee to your team, the first few weeks are extremely important. Those initial impressions and moments can shape the entire trajectory of that person’s tenure with the company—whether it’s brief or lengthy, good or bad, mutually beneficial or filled with conflict.
Employers aren’t likely to skip foundational things with a new employee, like setting up their computer or giving them a copy of the employee handbook. There are other steps, though—steps often overlooked—that are just as critical to setting the stage for an employee’s success.
Here are four important principles to keep in mind when you are onboarding new employees:
Set conscious expectations – The training that you provide in those first few days is setting up expectations for the new employee. You’re training them on more than just the work that they will be doing; you’re also introducing them to the culture of your company. Signals are being absorbed by the new person when it comes to things like the degree of organization, the amount of joking versus serious discussion, and whether meetings begin and end on time. Consciously or not, he or she will form lasting impressions during the training period of what is expected down the road.
Be open and honest – Ideally, your new hire will last and prove to a be a valuable addition to your team. Be crystal clear during the training period on what the job requires. Employees are more likely to stay if what they hear during the first weeks of training is consistent with their experience down the road. Clarity and consistency build trust, which, translated over time, leads to loyalty.
Set high standards – You can always scale back the pace or the amount of work that you’re expecting from a new employee, but it’s very difficult to get someone to significantly increase their output once the initial standard has been set. Establish a fast pace and continue to put new things in front of your employees. If they can keep up during those first few days, when everything is new, you can have confidence that they’ll continue to be effective team players in the weeks and months ahead.
Look ahead - Equip your new employees for today while inspiring them for tomorrow. Give them a vision of where the company is headed and how they fit into that picture. Offer opportunities for ongoing training that extend beyond the parameters of their current position. Help them grow towards where they want to be.
Setting the stage for an employee’s success is just one of the ways you can make your business an exceptional place to work. At the ReWild Group, we’ve identified through research the 11 elements of an exceptional business. Learn more about them here.
Improve accountability in the office with these three simple words
Do you feel frustrated because your employees aren’t taking ownership of their work? Does it seem like you have to constantly send reminders and follow-up with your employees before a task is completed?
If so, you’re not alone. Employee accountability is a big issue for business owners. Ideally, every person who is hired to join a company will take full responsibility for his or her work and even go above and beyond when the occasion requires. The reality, though, is often different. It’s not uncommon for business owners to struggle with getting employees to fulfill their responsibilities.
Do you feel frustrated because your employees aren’t taking ownership of their work? Does it seem like you have to constantly send reminders and follow-up with your employees before a task is completed?
If so, you’re not alone. Employee accountability is a big issue for business owners. Ideally, every person who is hired to join a company will take full responsibility for his or her work and even go above and beyond when the occasion requires. The reality, though, is often different. It’s not uncommon for business owners to struggle with getting employees to fulfill their responsibilities.
It should also be stated that accountability goes both ways. There are steps the employer can take to better manage expectations and to measure how well the employee is fulfilling those expectations.
The solution we present in this article is effective because it goes both ways—it applies to both the employer and the employee. The three key words to remember are expect, support, and reward. They keep employers in the right frame of mind to set employees up for success and they keep employees in a positive cycle of effort and performance.
The concepts are simple yet powerful. Following is a brief explanation of each one.
Expect
Set clear expectations for your employees. It isn’t reasonable to assume that they will automatically pick up on what those expectations are—they need to be articulated, preferably in writing. It’s easy to forget that what seems obvious to you is more about what you’re accustomed to or are taking for granted. You can’t be too clear about what you expect from your team. Be specific about hours (arrival and departure times, or logging-in times if remote); clothing attire; advance notice about absences; performance metrics (number of sales calls, amount of product stocked, etc.), and anything else that plays a part in your expectations.
For some people, it can feel uncomfortable to be straightforward about expectations, which is a big reason why this step is often missed. As a leader, though, part of your responsibility is to make sure the expectations are clear so you have something to which you can hold your employees accountable.
Support
Now that your employees are clear on your expectations, have you supplied them with everything they need in order to be successful? If employees don’t have the tools, resources, or training to do a job that has been assigned to them, they aren’t going to take accountability seriously. If they do, they’ll be extremely frustrated and not likely to last long in the position. Make it clear how you’ve equipped them to do the work, whether that’s through providing the systems and processes, or by simply being available to answer questions.
This isn’t to say that as an employer you are solely responsible for the actions of your team and their satisfaction with their jobs. However, it’s an important step in two-way accountability. When you tell your employees the work they are expected to do, they need to have confidence that they will have access to everything they need in order to fulfill those responsibilities.
Reward
Yes, you’re paying your employees to do a job, and if you’ve made it clear what that job is and provided them with everything they need to do it, it may seem reasonable to conclude that the paycheck is the reward. However, if you want a business that is exceptional—a place where people love to work and is full of energy—you’ll gladly take the extra step of rewarding employees who perform well.
Think of a reward as the flip side of the same accountability coin. When employees underperform, we hold them responsible. Rewards are simply holding them accountable for positive outcomes.
It doesn’t have to be an expensive gift, either; a reward can be as simple as an announcement to the team, an email to the employee, or an acknowledgment of their performance during a one-on-one review. Whatever it looks like, let your team know that they are appreciated. You’ll find that the effort you invest in this area will more than pay off in the added accountability you’ll get in return.
At the ReWild Group, our mission is to multiply the number of exceptional businesses globally. We share resources, ideas, and advice in advance of that mission. Learn more about management topics by reading our book Strong Management Team, available through Amazon.
Three hiring tips to ensure employees are a good fit
Finding and hiring good employees has always been a challenge for business owners, but it’s especially true today. The labor market is tight, leading to higher expectations from employees for special perks or accommodations, and less incentive to stay. Even a successful company that is well-run and has a healthy workplace environment can find it difficult to retain employees.
Needless to say, a great deal of time and effort go into hiring a new employee, which makes the question of how to find good people—people who are the right fit for a company—more pressing than ever. In this article, we’ll share three hiring tips that can be used to help ensure that each new employee is a good fit for the team.
Finding and hiring good employees has always been a challenge for business owners, but it’s especially true today. The labor market is tight, leading to higher expectations from employees for special perks or accommodations, and less incentive to stay. Even a successful company that is well-run and has a healthy workplace environment can find it difficult to retain employees.
Needless to say, a great deal of time and effort go into hiring a new employee, which makes the question of how to find good people—people who are the right fit for a company—more pressing than ever. In this article, we’ll share three hiring tips that can be used to help ensure that each new employee is a good fit for the team.
Look for transferable skill sets – When you are considering a potential candidate for a job opening, look past the job titles from her resume and pay close attention to the work that the job entailed. Just because the job title isn’t an exact match with the one you’re hiring for doesn’t mean that the candidate isn’t qualified. Look for broader skill sets that could play into the role.
For example, let’s say you’re looking to add a customer service rep to your team. It’s a junior-level position, so you’re not trying to find someone with years of experience. However, as a small company, it’s critical that every member be a full contributor. The candidate you are considering has never been a customer service rep before, but she worked retail jobs through college. During the interview, you come to discover that she loves working with people and is resourceful in finding ways to help them. She thinks well on her feet and has the kind of upbeat energy you want for your brand. Without having customer service experience per se, this person has enough transferable skills, coupled with the right attitude and natural abilities, to do very well in the role.
Establish clear roles & responsibilities – One of the most foundational things employers can do to attract the best people is to be clear and detailed about what the role entails and what the responsibilities include. This is not to say that there won’t be some amount of fluctuation in the position, especially if the person stays for a significant length of time. However, when a new employee begins, there should be consistency between the job that was described and the work he is expected to do.
Consistency, thoroughness, getting to the details and considering all aspects of a position—these things are time-consuming but well worth the effort. It's easy for employers to forget the unique perspective they hold, coming from within the company, and assume prospective employees share the same knowledge. In truth, when people are accustomed to a work environment, they take certain things for granted. Before advertising for a job, take the time to ensure the description you’re presenting is as accurate as possible. During the interview process, go over the description and ask questions; allow the candidate to ask questions, too. Eliminating the guesswork will provide clarity for both sides.
Start with strong Brand & Core Values – An often-overlooked component of good hiring practices, Brand & Core Values are critical to attracting the right employees. Brand Values are essentially a company’s promise to the market, while Core Values are the promise to the team. Both speak to the ideal experience that the company strives to create, whether that’s for their clients or for the employees as they work together on a daily basis. A company that clearly states those values to potential employees is setting expectations right from the start. Someone who finds those expectations unreasonable or unappealing is less likely to take the job, which saves both parties from wasted time.
Another advantage to being clear on Brand & Core Values is that an employee who is in alignment with those ideals is more likely to stay with the company, even in cases when there are other, more lucrative opportunities available. Brand & Core Values function like glue in keeping a company united behind the same ideals and in keeping customers coming back for more products or services.
Good employees are the strength of every successful business. While you can’t control many things about the applicant pool, you can do a lot to ensure that you’re creating the best conditions in order to attract, recognize, and retain the best candidates.
At the ReWild Group, our mission is to multiply the number of exceptional businesses globally. In this article, we’ve touched on two of the 11 Elements of an Exceptional Business – Brand and Core Values and Organizational Structure. Click to learn more about the guidebooks for each of the elements, and start the journey towards making your workplace exceptional.
Three ways to improve employee disengagement
Gallup recently reported that the percentage of engaged workers in the U.S. in 2021 was just over one-third (34%), and that a full 16% of employees were actively disengaged in their work and workplace. This marks a decline from 2020, and the first decline in more than a decade.
Given these troubling numbers, there’s a good chance you are facing that same challenge in your workplace. While there is plenty of speculation about what might be the reasons for the disengagement, the questions that we’re going to address in this article are 1) How can you tell if your employees are disengaged? and 2) What can you do about it?
Gallup recently reported that the percentage of engaged workers in the U.S. in 2021 was just over one-third (34%), and that a full 16% of employees were actively disengaged in their work and workplace. This marks a decline from 2020, and the first decline in more than a decade.
Given these troubling numbers, there’s a good chance you are facing that same challenge in your workplace. While there is plenty of speculation about what might be the reasons for the disengagement, the questions that we’re going to address in this article are 1) How can you tell if your employees are disengaged? and 2) What can you do about it?
Three signs that your employees are disengaged
Slow to voice opinions or share ideas
When you hold team meetings where group participation is encouraged, do all of your employees actively participate? Is there room for general discussion and shared opinions, or do a handful of people tend to dominate the room? While it’s natural and healthy that some people will speak up more than others, a red flag to look for is when one of your employees never voices his or her opinion or contributes to group discussions. This is especially true if the person used to be more involved—but even for someone who tends to be reserved, a sure sign of disengagement is if they never speak up or share their thoughts and ideas with the rest of the group.
Decline in quality of work
In the same way, an employee who used to take pride in her work and paid close attention to detail but now makes frequent mistakes is sending a signal. She no longer has the motivation she once did to do her best. Maybe you’re noticing something small like skipping steps at closing time, or maybe it’s something bigger like missing client deadlines. Whatever the case, an employee who no longer performs at the same level she previously did is not a fully engaged employee.
Late to arrive, early to leave
Are you watching the parking lot each morning to see when employees arrive? Do you schedule meetings first thing or at the end of the day in order to keep tabs on everyone and make sure they stay the full workday? If so, you have disengaged employees at your company. Simply showing up on time should be a bare minimum for employees to show their commitment to work. While occasionally everyone gets delayed or has good reason to leave early, anyone who makes it a pattern is demonstrating that work is not a priority.
Three ways to improve employee engagement
It’s possible you didn’t need any help with knowing how to spot a disengaged employee. If that’s the case, we’ve come to the piece you’ve been waiting for! While no one can transform the behavior of someone who simply isn’t interested in working, there are things that you as a leader or manager can do to address common concerns that cause employees to hold back.
Meet one-on-one on a regular basis.
Disengaged employees often feel as though their opinions don’t matter. This leads to a vicious cycle in which the employee doesn’t speak up because he thinks no one will listen, and the supervisor assumes he has nothing to say because he won’t speak up. When a supervisor and an employee meet face-to-face, it creates a shift in the dynamic. In this situation, there is no competition for airspace, nor is there someone else to hide behind.
Start with a clear agenda so that each person knows what to expect. (Needless to say, being called into the boss’s office at a moment’s notice doesn’t make for a relaxing conversation.) Give each person a chance to talk about what’s working, what’s not working, and areas where further support is needed. Create a list of follow-up tasks and stick to them.
These meetings are most effective when they are held on a regular basis. Ideally, you’ll meet one-on-one with your direct reports every four to eight weeks. When you implement this process, you’ll find it creates a culture of personal responsibility and builds a bond of trust, both of which are key to helping your employees be successful and engaged.
Make your company values crystal clear.
Every company has its own unique culture. The problem lies when the expectations and norms that guide the culture aren’t written down or expressly stated. Through no malicious intent, company owners can simply assume that the people they hire will catch on naturally to “the way things are done around here.” That’s not an efficient approach, however, and can lead to misalignment between the company and its employees.
Be intentional about creating strong internal values for your company. Think of them as a promise to your team. When you are interviewing candidates, tell them what your values are and let them evaluate those along with all other aspects of the job. That way, when you add a new person to the team, expectations governing behavior are clear.
Another advantage to having clear company values is that you are giving your employees something to be enthusiastic about. Perhaps the day-to-day work they’ll be performing can become monotonous or routine, but everyone responds more positively to work that has meaning. If they can connect their tasks to the broader mission and understand how they contribute, they are much more likely to be engaged.
Set clear expectations and boundaries around roles and responsibilities.
Clarity is never a bad thing, and it’s especially important when it comes to making sure your employees know what their responsibilities are. A major reason that employees become disengaged is that they’re unclear as to what they’re supposed to be doing or where they’re heading.
Take time to review all employee job descriptions. Are they accurate? If not, what needs to change? Are the changes substantial enough to warrant a new title? Different compensation? If you’re not clear on what the employee should be doing, you can bet that he or she won’t be clear either. Well-defined roles give employees the benefit of knowing what is expected and what is outside of their purview. The anxiety of wondering is eliminated.
The other component that benefits employees and leads to greater engagement is knowing what opportunities for development lie within the company. If the employee is in an ill-defined role with no idea what advancement might look like, he’s less likely to be engaged. Show him not only what he’s doing today but also what opportunities there are for tomorrow.
While there’s no overnight solution to boosting employee engagement, there are practical steps you can take to improve. It’s well worth the effort, too – businesses lose revenue, resources, and profits through disengaged employees and high turnover.
At the ReWild Group, our mission is to multiply the number of exceptional businesses globally. In this article, we’ve touched on three of the 11 Elements of an Exceptional Business – One-to-One Process, Brand and Core Values, and Organizational Structure. Click to learn more about the guidebooks for each of the elements, and start the journey towards making your workplace exceptional.
The Non-Negotiable Rules for Workplace Community
Workplace Community refers to the overall health and integrity of the group of people who work together in an organization. The Rules that govern these interactions have to do with promoting strong and clear communication, providing a common framework that makes it easier to get things done, and establishing common values.
The Non-Negotiable Rules are a powerful dimension within the Stages of Growth. They define the laws that a business must follow in order to be successful. The fact is that every natural system, whether it is a forest or a commercial business, succeeds by aligning itself to fundamental natural laws that establish order and balance.
Workplace Community
Workplace Community refers to the overall health and integrity of the group of people who work together in an organization. The Rules that govern these interactions have to do with promoting strong and clear communication, providing a common framework that makes it easier to get things done, and establishing common values.
Of vital importance in Workplace Community is establishing a feedback loop between supervisors and employees. This ensures that ideas are flowing from the bottom up and that leadership has the opportunity to infuse the organization with its thoughts and ideas. A feedback loop is important from the very beginning of a business.
Core Values are another area of great importance for a healthy Workplace Community. Core Values are about establishing the company’s promise to the team (as opposed to Brand Values, which are the promise to the market). Make sure that the Core Values are understood and upheld by the team for a unified community. Additionally, strong Core Values serve to attract and retain the right talent.
As companies grow, on-boarding new employees becomes more common and also more critical. With a larger leadership team, it’s important that everyone is on the same page. Many of the Non-Negotiable Rules for Workplace Community help ensure that newcomers to the organization are fitting in to the community.
Another Rule that becomes relevant as the company grows is to hold unifying, company-wide events. Employees should have a citizenship mindset towards the company, and events are an effective way to pull everyone together and establish a sense of collective identity.
As with all the dimensions of Non-Negotiable Rules, the Rules related to Workplace Community are cumulative; you can’t skip rules and expect to be a healthy, thriving business. To advance from one Stage of Growth to the next, you need to have at least 80% of the Rules covered for the current Stage. Consider them the graduation requirements needed to transition well into the next Stage.
Discover the Rules for Your Business’s Stage of Growth
How is your company doing with the Non-Negotiable Rules for Workplace Community? Take the assessment and download a report customized to your business’s Stage of Growth. In only two minutes you’ll get valuable information that will boost morale, improve communication, and enhance the overall health of your company.
