Do you know what one thing could have the biggest positive impact on your small business? I am reminded of the old 1991 comedy, “City Slickers”. In the movie, Mitch, played by Billy Crystal, is a middle aged radio advertising salesman. He and his friends Ed and Phil are in a mid-life crisis. They decide to go on a two week holiday in the Wild West driving cattle from New Mexico to Colorado. Their guide , Curly, played by Jack Palance, teaches them how to become real cowboys and one or two other things about life.
At one point, Curly says to Mitch, “Do you know what the secret of life is? One thing. Just one thing.” Mitch asked, “What is the one thing?”. Curly answered, “That’s what you have to find out”.
Of course, driving revenue, keeping costs down and customers happy are critical. But, the one thing that will help you achieve everything else is great employees. Without them, everything else is a lot harder to achieve.
The verdict is officially in. Studies have shown a statistically significant relationship between employees who are passionate and engaged at work and positive business indicators including profits (see research by Gallup). Although this short video by Enterprise Leaders Worldwide does promote their services, it reveals some of Gallup’s findings; proving that when employees feel good (employee engagement), it’s good for business.
Now, if you don’t have employees, you may be thinking this is irrelevant. However, if you are planning on growing, eventually you are going to need to hire at least a few employees. Hiring and retaining great employees may seem like a no-brainer these days when there so many people are out of work. But, this is only an illusion. Great employees are still hard to find and even harder to keep.
A previous article on this blog, “Employees From Heaven or Hell”, reveals alarming research statistics and cases as sited in Cliff Roberson’s eBook titled, “Preventing Employees from Ruining Your Business”.
According to Roberson, employee misconduct is considered the primary reason for the failure of one-third of the businesses that fail. Research indicates that approximately 50% of employees steal at least one item per year. It is estimated that losses from employee theft exceed $30 billion a year. Others estimate that inventory loss through theft exceeds 5% of the inventory cost.
Some experts say that 20% of the people will not steal from you no matter how you treat them. Another 20% will steal from you no matter how you treat them. A full 60% will steal if they feel they are treated poorly. The key, of course, is to avoid hiring the 20% who will steal from you no matter how you treat them. Then, make sure your employees enjoy their work.
Basically, there are three steps to make sure you have passionate and engaged employees. The first is to do a good job of recruiting and hiring. All too often, when small business owners hire employees, they make mistakes. The problem is that many small business owners lack the training to conduct effective employee selection interviews.
Job candidates are notorious for over-selling their abilities and hiding their weaknesses in an effort to obtain employment. Compounding this problem, small business owners are notorious for over-selling the company and the opportunity in an effort to fill the position. This is similar to dating, when both parties are on their best behavior. Then, after they get married (or the the employment relationship gets underway), reality sets in. New employees turn out not to be quite as wonderful as they led the small business owner to believe they were. The job turns out not to be quite as wonderful as the small business owner led the employee to believe it was. Is it any wonder that so many mistakes are made on both parts resulting in disappointment and turnover? For this reason, it is critical that small business owners receive training on effective interviewing.
Today, more and more businesses are turning to temporary help firms to make sure employees are a good fit before hiring them. Temporary workers are an excellent solution for small businesses, especially if there is any doubt about the long term need for help. This way, small business owners don’t have to worry about taxes, unemployment insurance, health insurance or liability.
The second step is to create a great working environment. Contrary to popular belief, compensation is not the main consideration for many employees. Most employees are at least as interested in having an opportunity to contribute to something important, to perform work that they enjoy and are good at and to be appreciated. However, that doesn’t mean you shouldn’t do everything you can to make sure your wages are competitive. For more on this topic read the article, “Compensation, You Get What You Pay For”
The third step is something many small business owners do very well. Build relationships with your employees and foster relationships among employees. People don’t quit companies, they quit bosses. Many studies show that relationships at work contribute to employee engagement.
So, if you want to know what one thing will make the biggest difference in your business, look no further than your employees. Take a ruthless look at your business to see where you need to improve it. Call your employees together and be totally transparent about the problems in the business. Ask for their help. Allow them to help. Then, show your appreciation for their help. Sounds simple. It is.
If you would like to contact me, you can do so by visiting my LinkedIn page or emailing me at susan.fronk@bestbizpractices.org.
Posted by: Susan Fronk
