| >A blog, like art should inspire conversation, debate and | | | | âbad business and the bad economyâ. |
| yes at times even controversy if it creates | | | | I was told that most of these employees were long |
| awareness or stirs thought. | | | | time associates who had been directly involved with |
| The goal and objective of a company is to make a | | | | the prior success of the organization. |
| profit. The question that a company needs to answer | | | | Ironically the total compensation for the top four |
| is; | | | | Executives for 2009 (the same time period where 150 |
| Do we make a profit as a byproduct, as an end result, | | | | to 200 loyal associates were forced out) INCREASED |
| by creating employee loyalty, and by establishing a | | | | 56.5%! Wow, I can see that business must have been |
| culture that promotes teamwork and appreciates the | | | | very bad! |
| contributions of the associates? | | | | * The CFO had a compensation increase of 81.56% |
| Or | | | | * The Vice Chair had a compensation increase of |
| Do we make a profit by destroying employee loyalty, | | | | 85.1% |
| by treating our employees as the slaves who built the | | | | * An Exec VP had a compensation increase of 67.7% |
| pyramids and the Kings Tombs and Palaces? | | | | * Another Exec VP had a compensation increase of |
| There are a lot of ways Great companies build | | | | 54.5% (Boy, I bet he was ticked off, only 54.5 %!) |
| employee loyalty. | | | | Since non-retail companies typically run an employee |
| Some focus on training and providing employees | | | | turnover of 10 to 15%, you might think an employee |
| advancement opportunities. Some Executives | | | | turnover of approximately 97% seems ridiculously high, |
| donât take raises to ensure that their | | | | but that is the national average for retail. That being |
| employees will get increases. Some offer the | | | | said, if a company is running about a 250% employee |
| employees the opportunity to voice their opinions and | | | | turnover I am thinking employee loyalty is not very high |
| to be an active part of the company growth, offering | | | | and it must not be a place where employees want to |
| large stock options and bonus pay for performance | | | | work! |
| programs. | | | | This behavior is sure to get you into the Best 100 |
| There are many free or low-cost benefits that can | | | | Companies to work for book! NOT! |
| increase employee satisfaction and boost company | | | | In his Article, âEmployee Retention: What |
| morale. Consider the following options: | | | | Employee Turnover Really Costs Your |
| * Provide direct deposit, saving workers regular trips to | | | | Company,â Ross Blake details some |
| the bank, with the banks often offering them favorable | | | | astounding statistics regarding the costs of employee |
| benefit | | | | turnover. |
| * Offer interest-free computer loans, through which | | | | âSeveral well-regarded studies have recently |
| companies purchase the computer and set up a | | | | estimated the cost of losing an employee: |
| payment plan with the employee | | | | * SHRM, the Society for Human Resource |
| * Order in lunch once in a while, especially during | | | | Management, estimated that it costs $3,500.00 to |
| crunch time for a project | | | | replace one $8.00 per hour employee when all costs |
| * Offer free sodas or subsidize soda and snack | | | | â recruiting, interviewing, hiring, training, reduced |
| vending machines | | | | productivity, et cetera, were considered. |
| * Give employees a free vacation day on their | | | | SHRMâs estimate was the lowest of 17 |
| birthday or a floating holiday | | | | nationally respected companies who calculate this |
| * Consider discounts from local merchants â | | | | cost! |
| often gyms or parking lots, for example â that | | | | * Other sources provide these estimates: It costs you |
| will give a discount if a certain number of employees | | | | 30-50% of the annual salary of entry-level employees, |
| sign up | | | | 150% of middle level employees, and up to 400% for |
| * Have regular movie nights, including refreshments | | | | specialized, high level employees! |
| * Give employees a chance to relax by treating them | | | | * Do a quick calculation: Think of a job in your |
| to tickets to a theater or a baseball game. | | | | organization where there has been some turnover, |
| * Retain a coffee service to provide free â | | | | perhaps supervisors. Estimate their annual average |
| and tasty â coffee to your employees | | | | pay and the number of supervisors you lose annually. |
| * Offer free yoga classes to relieve stress | | | | For example, if their average annual pay is $40,000, |
| * Bring in a masseuse and treat your employees to a | | | | multiply this by .125% (or 125% of their annual pay, a |
| free massage | | | | reasonable cost estimate for supervisors). This means |
| * Reward them with | | | | it costs $50,000 to replace just one supervisor. If this |
| âwork-from-homeâ days | | | | company loses ten supervisors a year, then 10 times |
| Here are a few more ways great companies build | | | | $50,000 equals $500,000 in replacement costs for just |
| employee loyalty and increase morale: | | | | supervisors. This is the bottom line cost. The top line |
| â25 Ways to Reward Your Employees | | | | cost? If the companyâs profit margin is 10%, |
| (Without Spending a Dime).â | | | | then it costs $5,000,000 in revenues to replace these |
| Then unfortunately, there are the | | | | ten supervisors.â |
| âotherâ Not Great Company | | | | I have to wonder and question if the Board of |
| approaches: donât do anything that will | | | | Directors for any organization is fully aware of the high |
| improve the workplace for the associates or improve | | | | cost of employee turnover resulting from a lack of |
| their work lives. | | | | employee loyalty. Perhaps keeping the top executives |
| * You can have as the companyâs core | | | | who create the turnover, costing the company major |
| values Accusation, Humiliation and Crucifixion. | | | | loss of profits, is not the best solution. |
| Thatâs sure to be a winner for building | | | | So now you can see two different examples of how |
| Employee Loyalty! | | | | companies handle Employee Loyalty: the Great and |
| * You can sit in your ivory tower and condemn the | | | | the Not Great. |
| actions of your employees. | | | | If you are an Executive or a member of the Executive |
| * You can have the âno idea is a good one | | | | Committee for your company, what approach are you |
| unless itâs mineâ attitude. | | | | taking to make a profit? |
| * You can base promotions or rewards on politics | | | | Are you building and creating employee loyalty, and if |
| instead of performance. | | | | so how are you doing that? |
| * You can take the âI am King and you are | | | | Or, are you having your associates build you another |
| peasantsâ approach. | | | | pyramid while you sit and observe from your palace? |
| * You can set policy and procedures based on a | | | | If you are an employee which approach do you think |
| whim and not take into consideration how it will affect | | | | your company is taking? |
| the employees who actually do the work. | | | | If you are an employee, which type of organization |
| * You can support the employees should do more | | | | would you want to work for? |
| with less philosophy. | | | | I work with individuals and organizations to help them: |
| All of these things are sure fire ways that Not Great | | | | * Understand and appreciate the importance of people. |
| companies manage to destroy employee loyalty. | | | | * Value and encourage opinions and contributions, |
| I received an email about one national retailer who | | | | * Create a better environment, culture and workplace. |
| reportedly downsized through workforce reduction | | | | I have the Experience, Knowledge and Tools to help |
| between 150 and 200 employees in 2009 due to | | | | you and your organization, Create a Winning Team. |