Your most valuable asset
Like customers, if your employees are unhappy, they can take their business elsewhere
By Ken Jackson -- Industrial Distribution, 9/1/1998
As an owner/manager of an industrial distribution organization, what causes you the most anxiety and stress in your business? According to Industrial Distribution's 52nd Annual Survey of Distributor Operations, it's not economic conditions, distributor competition, integrated suppliers, or even decreasing margins...it's your employees!Sixty-four percent of respondents to the recent survey stated that "finding more qualified people" was their No. 1 concern. Isn't it time that you began to look at your employees the same way you would your most valuable customers?
Just like your customers, your employees -- if you're not addressing their wants and needs, or if you are taking them for granted -- can take their business elsewhere! Remember, your competition doesn't make offers to your bad employees. And the cost of turnover is probably much greater than most people realize. Along with the obvious costs connected with recruiting, interviewing, hiring and training your workforce, other factors can be even more costly. For instance:
* Turnover begets turnover. When someone leaves your company, other employees begin to wonder why. The departure gets them thinking about whether they, too, should start looking elsewhere.
* You lose credibility in the eyes of customers. Your customers get used to dealing with your personnel. When they are forced to deal with new people on a regular basis, they have to wonder why. You don't want them questioning the stability of your organization.
* You can lose relationships with customers. Your personnel works hard to establish long-term relationships. Years of work can be lost in an instant.
* Supplier relationships can be affected as well. Your suppliers also question the credibility of your company when you have excessive or non-essential turnover.
Unhappy employees have a bad attitude that is evident to fellow employees, your customers and anyone else they come in contact with. They also will be ill more often, have more on-the-job injuries, justify theft in order to "pay you back," and consider harassment action if the potential exists. You can spend a great deal of your time and energy dealing with personnel problems that otherwise could be focused on increasing profitability.
Just like your most valuable customers, you should exceed the expectations of your employees. Following is a list of suggestions to improve employee relationships. (Most will require no additional expenditures.)
* Treat your employees with courtesy and respect. Sounds simple, makes sense, and costs nothing...but most employers don't do it.
* As often as you can (daily if possible) walk around your operation and speak to your employees (using first names, if possible.)
* Let employees make decisions within the scope of their job.
* Understand that they will make mistakes. Be tolerant...it's a great way to learn.
* Take an interest in significant events in their lives. If a family member dies, attend the funeral or wake (don't just send flowers). Family weddings should be attended (don't just send a gift).
* Visit sick employees if hospitalized (don't just send a plant).
* Ask them (and listen) for suggestions on how you can assist them in becoming more effective in their jobs.
* Be willing to invest in training and/or seminars to improve employee worth.
* Consider a casual dress code -- what do your customers expect your employees to look like? Do they really need to "dress up" for the job they are doing?
* Give employees ownership -- not necessarily an equity position, but reward them if the company is successful. Options include: 401k matching, bonuses, or maybe a special event for the employees and/or their families.
Just like any valued customer, ask employees what is most important to them. Trust your employees and they will be more apt to trust you. Satisfied and effective employees will be more productive for you and your organization. They also will help you find other satisfied and effective employees...don't miss this valuable resource when looking for new personnel.
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