subject: Staff loyalty has high value [print this page] Staff loyalty has high value Staff loyalty has high value
Many small businesses lose thousands of dollars every year through losing key people.
They seem to think this is inevitable, and spend time grumbling about "the attitudes of people nowadays."
Home business owners who intend to grow their business will need to build a loyal team, to serve their loyal customers.
Since we abolished slavery, we can no longer chain people to a desk or a factory bench. We can expect loyalty, but if we do nothing to earn it, we won't receive it. If your staff are not loyal to you and your business it will cost you big time. It makes sense to spend as much effort on earning staff loyalty as you spend on earning customer loyalty.
I can hear you asking "Why? When I worked for a boss I was loyal to the business. That's just the way I am."
I respond, "Of course you were. But did it pay off? Was your boss loyal to you? Why did you go into your own business?"
I don't have to prove to you that customer loyalty is worth a lot of money. You may want to prove to yourself that staff loyalty is worth just as much money.
You can calculate the cost of staff turnover in your business by using the free calculator available now at bizlearn.biz.
You may wish to consider the common sources of staff dissatisfaction. At jobsinRodney we are told about these by people looking for another job.
"My efforts are not valued. No-one tells me how I'm doing."
"I am criticised for mistakes, but never praised for doing a good job."
"I'm not making progress (learning anything) here."
"I never know what the rules are. They seem to change all the time."
"There's no challenge any more."
"The boss is mean about little things but does not recognize my extra effort."
" I'm not paid enough for what I do."
It seems obvious, looking at this list, that all these things are easily remedied, and above all they come pretty much free of charge.
I am not being unrealistic about this; some reasons for people leaving are not manageable. People's personal circumstances change and they relocate for many reasons. People's desires and career aspirations change. Young people, particularly in this part of the world, expand their life experience through travel, the big OE, and should be encouraged to do so. They are always better people for the experience they gain.
As we look around society we see many signs of changing attitudes. As employers we need to recognize that people are no longer grateful just to have a job, and a regular wage. The idea of lifetime employment died 40 or 50 years ago. The days when people led a life of quiet misery because of limited opportunity have gone forever.
The solution to the loyalty challenge.
The simple secret is the F word, not Gordon Ramsay's F word but FEEDBACK.
It is a mystery to me that so few employers give their staff honest and realistic feedback on their performance, and clear guidance on their expectations. It is so simple to do, and so cheap. Why are we so inhibited about it?
Are we afraid that if they think we value them, they will want a pay rise?
Do we only talk to them when we want something done, or when they make a mistake?
Don't we have time to train them how to do the job properly?
Don't we trust them with more responsibility?
Don't we trust them with information on how well the business is going?
Do we expect them to live up to standards we don't apply to ourselves? "Monkey see monkey do" is an old and crude way of describing it, but it works, often to our disadvantage.
If you have examined the cost (actual or potential) of staff turnover in your business, and you are motivated to accept the loyalty challenge, check out these simple action steps.
Have a regular, scheduled, uninterrupted team meeting, even if there are only two of you. 15-30 minutes is enough in a small business. Try an early morning meeting, and provide a simple breakfast snack, to avoid inconvenience to your customers.
Create and publish your agenda. Leave space for any staff concerns or feedback to be raised.
Provide a performance summary, focused on your KPIs (key performance indicators), and highlighting improvements or problems. You do not need to share confidential financial information.
Praise the team, even those who did not contribute they may become inspired to try. Praise those who have performed beyond expectations. Invite them to talk about the high and low points of their week.
Discuss emerging trends or challenges.
If you have an individual performance issue:
Deal with it early. Don't wait until it becomes a major problem, and a formal discipline interview.
Deal with it in private.
Have the facts at your fingertips.
Ask for an explanation. Listen to the answer.
Reach agreement on what will be done to resolve the matter.
Set a follow-up date, AND follow it up. Make notes on the issue and what you agreed.
Praise improvement, and help well-intentioned failure.
It's not rocket science. It's just common sense. It costs nothing to try. And, dare I suggest, if you're too busy to do it, you're not running your business; your business is running you.
Michael Taplin is a management consultant, teacher and trainer with 20 years of practice in running small businesses, and says he can show you the scars to prove it.
This articles was originally published on www.homebizbuzz.co.nz in 2006.
