The Power of Wow! Why Thank You Makes Dollars & Sense: 7-Step Method to Increase Sales Retain Staff & Have Clients Rave about You! by Caroline Kennedy

Author:Caroline Kennedy
Language: eng
Format: epub
Publisher: BookBaby
Published: 2013-01-15T00:00:00+00:00

Chapter Eight

STEP 5 –EMPLOYEES: WORTH THEIR WEIGHT IN END-OF-YEAR PROFIT STATEMENTS

Another key asset your business has is your valuable employees. It’s the people that make your business, and high staff turnover reduces productivity and increases costs. Many people feel under-appreciated, and numerous businesses neglect to reward staff. I would like to remind you of the value and the cost-effectiveness of saying “thank you” every once in a while. If you show your appreciation for your staff, they will look after your clients; this then takes care of the bottom line, which in turn looks after shareholders. The foundation of any successful business is the people, and a focus on ensuring staff feel happy and valued is imperative. It all starts with the recruitment process, and if you get this wrong, it is a wasted effort for all involved.

In this day and age, businesses are challenged to find new ways to not only motivate all workers but to reward top performers. Traditional methods of employee engagement are not as relevant as they once were. Recognition is a practice that acknowledges or shines a light on an employee’s actions, behaviours, efforts, or performances. As I’ve mentioned previously in this book, recognition meets a basic psychological need all human beings crave. It can also encourage and reinforce certain behaviours or values within your business.

Can you quantify the effort that is invested into your induction programs, training and product information sessions when you recruit a new employee? Most businesses cannot. This is costing Australian businesses dearly; the figures are alarming. According to research conducted by the Australian Human Resources Institute, staff turnover costs are rising, and we are paying for it to the tune of $20 billion. If your business has a problem with staff recruitment and turnover, it is essential that someone in your organisation takes the lead, understands why and implements strategies to rectify the situation.

The Australian Human Resources Institute survey found a turnover rate for large businesses of 17.4 per cent, and an average of 18.5 per cent across all businesses. Previous estimates put the turnover rate at approximately 12 per cent. The cost of turnover was calculated on an average salary of $55,660.80 (Australian Bureau of Statistics), a workforce of 10.6 million, and a conservative turnover cost estimate per employee of 75 per cent of salary.

These statistics might not seem relevant to you, but they are. Small businesses will obviously operate on a smaller base and scale, so although the impact is less significant in dollar terms, it is just as harmful in relative terms. If you cost your turnover based on the formula above, it has real consequences for your bottom line profit.

I wanted to investigate further as to why small businesses were losing so much money on restaffing, so I went straight to the source - the employees. Their dissatisfaction was caused by factors such as a poor relationship with a superior and the lack of a work-life balance, including more senior employees feeling they had to be accessible at all times.

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