If you are looking to grow your business, if you haven’t already, it’s time to start thinking about employee retention and recruiting.
Employee retention and recruiting are becoming even more critical in today’s economy. The cost of recruiting and training a new employee can be high, and it’s often easier and cheaper to keep the employees you already have.
Wherever you go, you see help-wanted signs posted in nearly every type of retail establishment. Chats and social media are full of complaints from companies who are getting unqualified candidates and no candidates at all.
Our surveys show a growing concern among companies that have been successful for decades. Growth is beginning to slow, or they are not growing at all.
There are two primary complaints; companies cannot keep critical employees or recruit their replacements successfully. Companies facing both issues have the most significant risk of a future failure.
While many point directly to the pandemic, many other reasons have been slowly contributing to the current state of employment problems for many years.
While you may be aware of some of the reasons individually, looking at them in combination clearly shows how significant a shift is taking place, explaining why employees are not staying and why there aren’t enough people to hire.
Here are some of those reasons:
Schools and parents push kids to college
Change has been slowly building up to where we are today. For decades, schools have been slowly closing down trade programs because parents and education have pushed young minds to professional careers vs. trades jobs.
Most people believe that if their kids go to school and get a degree or two, they will find a job. The fact is that an overwhelming number of degree holders are unemployed and living at home with their parents.
Therefore, we have become a society where we must adapt and learn new skills and work towards continuous self-improvement throughout our lifetime. Sadly, this is not the mindset of most job seekers. Employers are looking for employees that have a passion for their work and are excited to come in each day and do their best.
So how can we overcome this problem? It will require a concerted effort from schools, parents, and employers to change how we look at career preparation. We need to focus on teaching life-long learning and problem-solving skills and helping young people understand that not every job requires a four-year degree.
Social welfare has been keeping fewer people from working
In the early 90s, work requirements were added to social welfare programs. This forced people who could work and choose not to go out and find a job. The idea was that if they were required to work, they would no longer receive government assistance.
However, as time went on, rules were relaxed and fewer positions were filled by those who needed to fill them. And now, due to a lack of workers in certain areas, we are seeing the return of those same people who have stopped looking for work.
Leadership in Washington continually shifts the balance of Social welfare. It has become much easier not to work and get paid, leaving many to sit on the sidelines. Without an incentive to work, businesses have struggled to find the help to run and maintain their businesses.
Covid’s impact on the workforce
Covid has the potential to change the current landscape of hiring drastically. Traditionally, employees who received assistance from government assistance were required to work or attend school as a requirement for receiving those benefits.
The help would only last as long as they continued working or going to school–if they failed those requirements, their assistance was cut off.
Now, with Covid and so many people out of work, the government is trying to find a way to help these people. They have relaxed the rules for receiving benefits, which means people can now stay at home and still receive money. This will likely significantly impact future hiring as businesses will be more reluctant to hire new workers.
COVID caused numerous businesses to panic, which triggered some of the most aggressive social welfare benefits seen in the history of the US. A lower-income worker could quickly bring home more sitting at home on unemployment than working.
Five generations in the workforce
One of the most extended-standing shifts in the dynamics of the present-day workforce has been forming for decades. With five generations in the workforce, recognizing the differences has become more of a challenge.
Suppose you are trying to retain employees as you always have or recruiting as you have always done. In that case, you will see pretty clearly in my overview of each of the generations that they have very different mindsets and differences that make each unique.
By understanding each generation, you can create a strategy that better relates to each age. If you continue to recruit as you did for hard workers like baby boomers, but you are speaking to a Generation Z candidate, you will quickly find they are not interested.
Researching and understanding individual workers’ work behaviors at the beginning of your recruiting process will allow you to craft job descriptions, compensation, and benefits packages that will relate to each.
This next section addresses some key drivers contributing to changing demographic trends; here is a breakdown of the characteristics of each of the five generations:
1. Generation Z
Generation Z was born from 1997 to 2012. The oldest was only seven years old when the 21 st century began. And now they are 20 or under.
They are digital natives. Teenagers who know nothing other than an always-on connection to the Internet and smartphones with rich social media apps—Instagram, Snapchat, Kik, and Tumblr… many of which did not exist a decade ago.
They grew up in a world where the 2008 recession hit their parents hard, leaving many of them to fend for themselves from a young age. They are entrepreneurial and self-sufficient.
They like brands but not advertising. They want authentic brands that reflect their values and interests. They don’t trust advertising, preferring to get information from social media and friends.
They are socially conscious. They want to make a difference in the world. They are often more engaged with social issues than their predecessors. They are multi-cultural. They are comfortable with people of different races, religions, and sexual orientations.
How to attract and retain Gen Z employees?
There are a few things that businesses can do to attract and retain Gen Z employees:
Offer flexible work arrangements.
Gen Zers want the freedom to work when and where they want. They don’t want to be tied down to a traditional 9-to-5 job.
Let them be creative.
Gen Zers want to be creative and have a voice in their work. They don’t want just to do what they’re told.
Give them opportunities to learn and grow.
Gen Zers want to learn and grow in their careers continuously. They don’t want to stagnate.
Let them express their individuality.
Gen Zers want to be themselves at work. They don’t want to conform to a particular dress code or personality type.
Show them that you care about social issues.
Gen Zers care about social issues and want their employers to be engaged in causes that they care about.
Let them use their smartphones and social media.
Gen Zers are very comfortable using smartphones and social media for work. They want to use these tools to help them do their jobs better.
Pay them well.
Gen Zers are no different from other generations when it comes to being paid well for their work. They want to feel appreciated for the contributions they make to their company.
Businesses need to cater to the unique needs of Gen Z employees to attract and retain them. By offering flexible work arrangements, letting them be creative, and giving them opportunities to learn and grow, businesses can create a positive work environment that Gen Zers will want to be a part of.
And by showing that they care about social issues, companies can attract Gen Z employees who wish to make a difference in the world.
Benefits that Generation Z want:
At the very least, Gen Z expects these major employee benefits:
- medical insurance
- paid leave
- a retirement fund
- parental benefits
- student loan repayment
2. Millennials, Generation Y
Gen Y (born between the early ‘80s and mid ‘90s)
Generation Y currently represents 35% of all employees in the US. Although many previous generations are individually competitive, Gen Y emphasizes teamwork and communication.
How to attract and retain Millennials employees?
Businesses that have not done so need to realize that they are at a competitive disadvantage if they are not actively engaged with this generation.
Here are some of the most common mistakes in attracting and retaining talent.
- Not being seen as an employer of choice due to inadequate salary, lack of interesting work, or no career development opportunities.
- Failing to use technology and social media to reach and engage with potential employees.
- Poor communication and management, which can lead to high staff turnover.
How to attract millennials?
Use social media
Create a social media presence. Brands active on social media are more likely to appeal to millennials.
Flexible work environments
Offer a variety of flexible work arrangements. More and more millennials are looking for alternatives to the traditional 9-5 job.
Make use of technology. Millennials are very comfortable with technology and want to use it in their work.
To retain millennials, employers should focus on the following:
Regularly communicate and engage with employees. Millennials want to feel like they are a valued part of the organization, and regular communication helps do this.
Provide opportunities for growth and development. Millennials don’t want to stagnate in their careers; give them opportunities to learn and grow within your company.
Employee benefits Millennials want
Millennials value career development opportunities and benefits that prioritize a work/life balance. Some examples include:
- Career development programs
- Monetary gifts
- Opportunities to give back
- On-site daycare
- Mortgage services
3. Generation X
Those born between the mid-1960s and early 1980s.
Generation X is currently the largest generation in the US, representing roughly 33% of all employees. They are a grateful and loyal bunch who work hard to get ahead—and employers need to take note.
Here’s how to attract talent from Generation X
Generation X employees are looking for stability in their jobs. They want to know that they can count on their company to be there for them, both now and in the future.
Provide growth opportunities.
As with millennials, Gen Xers don’t want to stagnate in their careers. They’re looking for opportunities to learn and grow.
Treat employees like adults.
Gen Xers are looking for an employer that trusts them to act like professionals rather than children. Treat them as equals, don’t talk down to them.
Although there is some overlap between the generations, Generation Y and millennials tend to focus on teamwork and communication while Generation X focuses on stability and opportunities for growth.
Here are some of the most common mistakes that employers make when attracting and retaining talent from Generation X:
- They are not upfront about company issues. Gen Xers expect to be told about problems with the company, and they want to be able to offer their input on how to solve them.
- They are not offering competitive salaries and benefits. Gen Xers are looking for a good salary and benefits package, just like everyone else.
- Failing to keep in touch with employees. Gen Xers often feel neglected once they’re no longer the “new employee.” Make an effort to stay in touch and keep them updated on what’s happening in the company.
In a society where babies and teenagers grew out as parents, their generation changed. From 1965 through 1990 are generally better educated than earlier generations. Gen Xers are sometimes seen from the perspective that they are more financially literate than the average man.
Gen X’s ideal workplace environment
- Flexibility in managing workload and increased physical and mental space.
- Gen-X people prefer less oversight at work but generally want more autonomy. It is common knowledge that these people choose to share information online or personally.
- Generation X workers are in the early stage of their careers and have the experience to value managerial decisions.
- Besides family life, the members may also seek flexible schedules which allow them healthy work-life balances.
Employee benefits Gen Xers want
Gen Xers raising their families may be particularly concerned with healthcare coverage, flexible workforce arrangements, on-site daycare, and other perks that support a work/life balance.
Additionally, this generation appreciates monetary benefits such as:
- Monetary gifts
- Stock options
- Gift cards
- Tuition reimbursement
- Mortgage services
4. Baby boomers
Born after World War II through 1964, baby boomers have long been known for their strong work ethic and goal-centric tendencies.
They tend to be hardworking and value face-to-face interaction. They didn’t use computers, although they will use technology for job-related functions.
How to attract and retain baby boomers
Older employees may be more comfortable with traditional recruiting processes, including creating formal resumes and holding face-to-face interviews. They may be more likely to find jobs through advertisements, word of mouth, and referrals.
Retention strategies that work well for this generation focus on recognizing them for achievements through public ceremonies or other awards they can share with family, friends, and coworkers.
Baby boomers’ ideal workplace environment
Baby boomers aren’t usually looking to job-hop, so job security is appealing. They may appreciate a more formalized, structured environment than younger generations would.
Growing up without digital communication means they’re more comfortable interacting in group meetings.
How a baby boomer employee wants to be managed
Baby boomers are often hard-working and want to be recognized for their skills. They are often a great source of knowledge about their industry and appreciate the chance to share their expertise. Managers should leverage their skills and encourage them to mentor younger employees.
Employee benefits baby boomers want
As many members of this generation are nearing retirement, they appreciate flexible work policies.
Many experienced staff members will consider staying on the job longer if they’re offered reduced schedules, the option of working from home, or alternate hours. Health care and retirement benefits, including a 401(k) match, are highly desired.
5. Silent generation
The oldest generation currently in the workforce is the silent generation, born between 1928 and 1945. They grew up without today’s technology, and many other modern conveniences younger generations take for granted.
Many members of this generation have overcome adverse economic conditions in their lifetimes and thus have established diligent financial habits. They’re hard workers with solid core values.
How to attract and retain the silent generation
Stressing fundamentals can help companies attract and retain employees from this generation. They want to feel as though they’re paid fairly for a job well done.
The silent generation’s ideal workplace environment
Although members of this generation appreciate the advanced technology used today, they may not be as familiar with it or comfortable using it.
Providing offline options to complete tasks can help create a positive work environment for older employees. Like the baby-boom generation, they value personal interactions and can be effective when allowed to meet face-to-face.
How a silent generation employee wants to be managed
In-person discussions with these employees can help clarify goals and allow managers to provide feedback. Encouraging them to share their knowledge and expertise can benefit the entire workforce.
Employee benefits the silent generation wants
As tenured employees, silent generation employees may be focused on healthcare and retirement benefits. They may be working to build up a pension from long-term employment.
They may also appreciate flexible work policies, including paid time off, as they transition to full retirement.
Meet the US workforce of the future
Despite growing age-based employment and shifting demographic trends, the United States workforce remains diverse and highly educated. Does that matter?
Combining the increasing long lifespan and rapidly developing technology can drastically overhaul future careers, creating challenges for businesses wanting to grow their business.
How do you manage five generations at work?
You may be fortunate that you don’t have to manage all five generations simultaneously. However, that blessing could also be a curse. If most of your help are Boomers, you will surely notice a gap in the coming years.
Everyone is different, ranging from expectations, communications style, or viewpoints. However, adopting a strategic plan that reflects diverse workforce types and possesses specific traits can help businesses identify and harness employee potential.
One thing in common, everyone wants meaningful work
Across generations, their most valued value is often the same, but their differences may vary significantly. There’s a more significant share of commonality that makes no difference.
Each generation chose items that had always revolved around the core of the motivation. Generally, though, most of the age focused on the intrinsic motivation for their work.
Everyone saw that the others had focused solely upon money and recognition and didn’t consider meaning in work.
How do companies bridge generations and long-developing cultural shifts?
What is the solution? Suppose we want a plan to work for all generations. In that case, we need a strategy to bridge the ongoing shifts occurring in the workforce and coordinate across all the different generation groups.
This means a multi-dimensional approach that will require implementation of four key strategies related to retention and recruiting employees:
1 – A Leadership strategy
First, it begins with a leadership strategy. With strong leadership, your business will thrive and succeed. Training your employees in leadership will only accelerate growth toward your goals.
2 – An Emotional intelligence strategy
Second, we should have an emotional intelligence strategy that helps people stay connected at work and enjoy being there.
3 – A Retention strategy
Third, we should have a retention strategy to keep people from quitting their jobs too soon.
4 – An Employer branding strategy
Fourth, we should have an employer branding strategy so that people want to come and work for us because they know what it’s like here and how great it is here!
Let’s look at each of the three strategies as solutions:
Leadership is not about work but rather the self. It is a skill that can be defined as the ability to influence, motivate and empower others.
There are several examples of companies that have failed or suffered great losses because they lacked good leaders. In contrast, companies have been successful because they were well-led.
This section will discuss why leadership must be a strategic asset for a business and how it can make or break a company.
Leadership starts with the Leader
So to become a leader you must want to work on yourself. This is a process of self-development. You may begin this process by taking part in leadership development programs.
These will give you the tools to become a better leader and help your company grow. Through self-development comes the confidence needed to lead others and make decisions.
What are your values and beliefs?
Values and beliefs are different but knowing what values and beliefs you hold will give you important insights into why you act the way you do.
It’s important to know what your values and beliefs are so you can be sure that the decisions you make are in line with them.
Values are things that are important to us as individuals. These include attitudes, opinions, and ideas that we hold as important. Values provide orientation to all our behavior and actions. We can sometimes be aware of them but often they are not.
Beliefs are things that we think are true. They may be based on our personal experiences or on what we have been told. Beliefs give us a sense of certainty about the world around us. We use them to make sense of things and to guide our actions.
Values and Beliefs help us to make sense of the world we live in; they provide a framework that we use to make decisions and solve problems. Beliefs are ideas you have accepted as true even though they cannot be proved.
Why values and beliefs matter
When you become a leader, it is important that you know what your values and beliefs are. When you know your values and beliefs, you can move forward with a sense of calm and assurance.
Motivation or self-propulsion of self and others is the result of understanding values and beliefs which once understood allow you to move forward. You do this with a sense of calm rather than through impulsiveness that comes from being oblivious to what’s really going on inside yourself.
You will be able to motivate others to do the same and achieve great results. So if you’re looking to become a leader, it’s important that you take the time to develop yourself and learn what it takes to be successful.
Knowing who you are = better decisions
By discovering who you really are then working toward the person you want to become, you will be more effective when it comes to leadership. Successful leaders must also be decisive and have the ability to quickly assess a situation.
They must also be willing to work on themselves and develop their skills so that they can lead others and make decisions that will benefit the company. And when it comes to making decisions, being decisive is another key trait of a successful leader.
Leaders must have the ability to quickly assess a situation and make a decision that will have the most positive outcome for their company. Furthermore, you will also inspire those who work with and for you to do the same.
When it comes to being a successful leader, it’s not only about what you know but also who you are. When leadership is strong, a business thrives and can achieve great heights.
Lack of leadership can lead to business failure
A lack of leadership is a very important underlying cause for business failure. The lack of leadership can be from top management or middle management and it also includes all downline employees who are not performing at their optimum level.
Most often it’s the lack of effective leadership at the top that is a major contributing factor to failure. Senior managers need to provide a clear vision and strategy, good decision-making capabilities, strong motivation skills, and an ability to create a supportive work environment for their employees.
The management team must possess core competencies in areas such as cost control, marketing, strategic planning, human resources, and operations. Without these essential skills, the company will struggle and eventually fail.
Other factors that can contribute to a lack of leadership are poor communication, inadequate team development, weak delegation skills, favoritism, and micromanagement.
The importance of leadership training
You don’t have to be a born leader. Leadership can be learned and improved with proper leadership training. This is why it’s important for businesses to have leadership development programs in place so that employees can learn the skills they need to be good leaders.
One of the best ways to develop leadership skills is through experiential learning. This involves learning by doing and allows participants to apply what they learn in a real-world context.
Leadership development programs should include strategic planning, communication, and team-building. This will help employees to understand how to lead teams effectively and achieve results.
What are the benefits of leadership development programs?
- Leadership development programs offer employees a variety of benefits, including:
- Improved skills and knowledge
- A greater understanding of how to lead teams effectively
- Opportunity to learn new skills and improve on the ones they already have
- Ability to become a better leader in the future
- Benefit the company as a whole
Without leadership, you risk failure
For businesses, having strong leadership is essential for success. However, if a company lacks good leaders, it may experience failure. This is because leadership is responsible for setting the direction and strategy of a company, and when this is not done well, it can lead to disaster.
This is why it’s important for businesses to have leadership development programs in place so that employees can learn the skills they need to be good leaders.
If you’re looking to become a leader or develop leadership in your company, our unique training and coaching program is designed to help anyone become a leader regardless of personality type.
2-Using an Emotional Intelligence strategy in the workplace
Emotional Intelligence is a tool that will work across all ages and backgrounds. Emotional Intelligence is a set of skills that enhance your ability to interpret and control your own emotions and the emotional expression of others. These skills will help you both in work and in relationships outside of work.
Intelligence Quotient (IQ) vs Emotional Intelligence (EQ)
Most people are familiar with Intelligence Quotient, or IQ. Many bases a person’s abilities on IQ for educationally and work-related tasks. However, It is also the fodder for numerous jokes and is often viewed as being responsible for the self-esteem of the masses.
However, this is determined by your emotional quotient. I imagine many of you are now searching Google for the dynamic quotient definition… Don’t feel bad; I was unfamiliar with the term at once, but let me save you some time.
Your emotional intelligence is the ability to sense, understand, control, and express emotions to improve your work or the work you do with others.
Intrapersonal and Interpersonal
The two main areas of emotional intelligence are Intrapersonal and Interpersonal.
Intrapersonal is what you experience inwardly when facing daily events.
Interpersonal is what you experience outwardly between yourself and other people.
Research shows that exceptional performers and top leaders possess well-developed emotional intelligence skills. This enables them to work well with many people and handle various situations.
This is essential to business success with the ever-changing needs of society. Your emotional intelligence may be a better predictor for the success of your career than your IQ is.
The five dimensions of emotional intelligence
There are five dimensions of emotional intelligence, three within the area of Intrapersonal Emotional Intelligence and two within the scope of Interpersonal Emotional Intelligence:
Intrapersonal Emotional Intelligence Dimensions:
Is the capability to identify and comprehend your emotions, moods, and what drives you, in addition to how they affect others.
Examples of Self-Awareness:
- Understanding how your emotions impact your goals, motivations, strengths, and critical aspirations.
- Recognition of how emotions can impact understanding the feedback you receive from others.
- The capability to project confidence in most situations.
- The ability to understand your emotions and their impact on stress.
Is the power to control or modify your urges and moods and the inclination to delay the decision to think before you do something.
Examples of Self-Regulation:
- The ability to manage emotional impact when dealing with conflict.
- Thinking things through from an emotional perspective before acting.
- Being able to manage your emotions when resolving issues in most cases effectively
- The ability to lift yourself out of a bad mood.
Is a passion for working for reasons beyond money or status and a propensity to pursue goals with energy and persistence.
Examples of Motivation:
- Pursuing your goals with enthusiasm and energy.
- Continuously looking for ways to succeed when faced with challenges or resistance.
- Looking for ways to develop your skills or improve your career when you see the need.
- The tendency to meet your goals and the expectations others set for you.
The ability to understand the emotional makeup of other people.
Examples of Empathy:
- It is recognizing if you have potentially offended someone and making efforts to avoid that in the future.
- Using active listening skills can predict a person’s emotional state.
- Others tend to feel you are compassionate towards them.
- Even though you have a strong opinion on something, you can still understand others’ perspectives.
5. Social Skills
Social skills are proficiency in managing relationships and building networks.
Examples of Social Skills:
- Others generally find spending time with you a positive experience.
- Interpreting nonverbal cues in most instances.
- Negotiating with others.
- Placing value on friendships.
It is vital to ensure that you have the right emotional behaviors for your business position. The good thing about your Emotional Quotient is that you can learn to control or change behaviors as needed. While your personality can be challenging to change, your emotions can be trained through better habits.
The (EQ) Emotional Quotient Assessment is a great tool to determine what behaviors comprise your emotional quotient and how you can improve upon them. This assessment is often mistakenly referred to as a dynamic quotient test. Still, it contains no right or wrong answers, just perceptions of your emotional intelligence quotient based on your responses.
The EQ Assessment is extremely valuable to employers looking to find quality long-term employees. Since employees with a high emotional quotient work best with various people, they can often cover and assist other employees at different levels when needed.
3-Employee retention strategy, keeping your top employees
Employee Retention is a long-term strategy that can be implemented with short-term tactics to achieve desired results. It is the only way to compete with your competition, and time is not on any of our sides.
Focusing on an employee’s long-term career development and keeping employees engaged is a key to retaining generations of workers. Small and mid-sized businesses cannot compete with their larger counterparts regarding compensation and benefits, so they must competitively position themselves by demonstrating value to the company and its members.
13 Steps to retain the best employees
Step 1 – Manage your employees systemically
Successful management is systemization. To do it, you must think systemically as well as systematically. Systemic thinking means you are aware that your business is a system, and it’s composed of macrosystems and microsystems all dependent on each other to achieve the result you want for your strategic objective.
You learn to approach each business function by creating systems to accomplish results and solve problems by eliminating them. A system is defined as the steps and standards required to achieve a result.
To achieve sustainable growth, four macro systems are required:
- Marketing and Sales
- Finance and Information
BUT, it all starts with Ownership of the company….these are the traits that I have found in working with 200+ companies…
- Starts a business that can scale, turn-keyed, and sell for the desired profit.
- Looks for and matches markets and products that create automatic customers with enough potential to make the desired profit.
- Hires people, employees, and expert consultants to design, plan, systemize, and document training and implementation tools proven to work.
- Invests resources to ensure that the organization has the tools, equipment, facilities, inventory, people, systems, and training to achieve all key performance objectives – especially profit.
- Trains oversee, meet, and develop a management team that can run the business profitably without the owner being present.
- Constantly improves and innovates systems and people to beat the competition.
- Transitions out of daily operations or sells the business for that desired profit.
Growth businesses are built based on the number and effectiveness of their strategic growth projects. Goals, plans, and behavior determine what people do and accomplish.
Growth requires priority – a strategic objective and series of plans driven by systems and quantification create a chain of actions that, over time, achieve growth objectives.
So, what do you want?
Do you want a business that simply exists, or do you want to turn your business into the best it can be to produce a more incredible foundation for your employees and better value for you?
What you do now and next will determine your path. Your actions define your future and the future value of your business at this moment.
Are you willing to invest the time and resources to turn your business into a money-making machine?
Step 2 – Share your vision, your corporate strategic objective
You won’t go anywhere without direction…what’s your strategy?
The strategic objective is about products and services desired by a large enough market you can reach that will achieve your financial goals. The strategic objective includes a description of your unique services and products and the market segments they serve. This information is also included in your Marketing Plan in summary form.
What needs to be done
Just as in every successful endeavor, there is work to be done to position and prepare for success.
The good news is that we know exactly what needs to be done because we have helped numerous companies, just like yours, to turn struggling and directionless operations into thriving, purposeful, and highly profitable enterprises.
Strategic objective guidelines
The core guidelines to follow as you determine your strategic objectives include:
- Give an overview of the reason for the Strategic Objective, state overall what it is and why it is essential.
- Start by stating precisely what the overall goal is. Almost always, having the highest quality of product and level of service is the easy ticket to long-term success. You will need to be able to measure this expertise objectively.
- Who are your customers?
- Define precisely what you do. What exactly is it that you sell or provide? If necessary, add a geographical region in which you do this. Are there other objective constraints or limitations?
- Make your systems a priority by stating that the people, procedures, and guiding/supporting documentation will focus. Say that by having a clear path supported by enthusiastic people who know precisely what is expected, goals will be met, and customers will be happy. Add other attributes that you feel are critical. You may need an entire paragraph to be thorough. You will tweak this overtime to get it right.
- What are your competitive advantages?
- State your superior efficiencies or other outstanding advantages? Is there some unique sales positioning or another unique attribute that you have?
- Again, state the importance of procedural documentation and must be followed precisely. Then – this is important – temper that statement by saying that procedure documentation will be changed instantly if it can be improved and that anyone can solicit a change (“…a rigid steel structure that can be instantly adjusted.”) You will define in a Working Procedure exactly how this will work.
- Describe your organizational chart briefly and, generally, how the organization is put together. You will back this up with job descriptions and their KPIs.
- Key Performance Indicators – Set your 3-year financial goals for revenue, gross profit, overhead, net profit, and cash flow.
These are the first steps you will need to take to help you achieve your business objectives – to get what you want from your business.
Step 3 – Get your business organized.
Your Organizational Strategy
Organizing your business is essential to preparing for the work ahead. Companies typically neglect to get adequately managed. Part of this is because it is necessary to develop an Organizational Chart that will contain more spots to fill than the entire business has staff to serve them to have proper organization.
This gives the process a feel of the unattainable. In reality, the most successful small business managers know that this effort will achieve benefits much faster than you can imagine.
Seeing the present and the future simultaneously is a unique ability that allows the present to serve the end. The first consideration is the current work, objectives, and the positions required to get everything done now.
The second consideration, the organizational chart, requires more creativity because it is necessary to achieve the strategic objective for three to five years.
This requires a mindset that can see and understand two realities simultaneously. Our experience working with hundreds of organizations is that some people can satisfy an individual’s needs or perceptions.
The result is a unique employee that cannot be duplicated. This causes severe consequences when they leave, as the entire department must be reorganized and often fail. If this is not corrected, it forever delays the achievement of the strategic objective.
Wherever strategic vision is lost, decisions are made out of expediency that inevitably fail because they are only temporary solutions. Unless someone develops the organizational strategy now, the organization will be incapable of improvement and growth with several applications.
Developing your organizational strategy begins with your objectives (the owner or investor) and the strategic purposes, including the financial, intellectual, and emotional needs required to fulfill that personal objective.
At the same time, the owner or top managers engage the organization to fulfill the strategies and tactics required into divisions of work. So, the manager creates the strategy and tactics for the team members, directed by department and position.
The manager maintains the overall perspective or the big picture, and the team members focus on parts of it. Yet, their portion is strategic to the team members because it is their full view. This is the process of delegation.
These processes continue until there is no one else to delegate to because there is no more tactical work to be done that has not been assigned by position.
Creating Divisions or Departments
To achieve the strategic objective, an organization constructed in an intelligent manner involving uniformity of work is required.
Uniformity contains the following standards:
- Work requiring the same skill category
- Work requiring the same skill level
- Capacity in number of people in the work standards required to achieve objectives
- Sufficient quantity of people in the labor marketplace from whom you can select qualified candidates
A skill category is a general grouping such as Accounting, Marketing, Management, Sales, Operations, Technology, Human Resources, and Administration.
A skill level refers to the degree of personal sophistication required in a skills category.
The organizational strategy continues with the development of all of the skill categories. Marketing, Finance, and operations require the same skill level, but they demand different skill categories.
Step 4 – Understand…people are the heart of your business
I can’t emphasize enough how important it is to understand that people are the heart of your business. This is why your organizational strategy is so essential to your success. You have to have a clear plan and begin creating systems.
Must have a workforce
But your goals cannot be fulfilled without a workforce. And if your force isn’t capable, motivated, and hardworking, your business will not achieve your strategic objective.
It would be a shame to fail your business plan because you didn’t emphasize the people. From top management to the part-time hourly rate worker, each employee is a partner in your company’s success, whether or not they are aware of it and whether or not they are just putting in the time or are highly productive.
Your greatest asset or your biggest weakness
Employees can be your company’s greatest asset or your biggest weakness. An inadequately organized and trained workforce can easily be your downfall.
The work may not be done correctly, and employees will not feel pride in their work. They will become frustrated and confused about their job requirements. This can lead to reduced productivity and increased job turnover.
Success = full organize and trained workforce
On the other hand, a fully organized and trained workforce is confident about their ability to do the job. They are proud that management cares enough to ensure that all employees complete their tasks.
Their confidence and pride turn into motivation and increased productivity. As a result, the employees work well individually — and as a team — to achieve the business’s goals.
Step 5 – Implement DiSC testing, get the right people in the right job
You may have heard of the DiSC model before, but do you know what it is? DISC is a personal assessment tool used by more than one million people each year. The assessment is used to improve teamwork, facilitate communication and increase productivity in the workplace.
The test is based on the premise that your personality is set at age 6. Personality traits bridge the generation gap since there are only four different types of personalities.
The acronym stands for Dominance or D, Influence or I, Steadiness for S, Conscientiousness or C. This type of personality trait can better understand oneself and others to reduce conflict between co-workers or partners.
Using these assessments during communication sessions to understand oneself and others better provides a common language that unites teams from different backgrounds. Overall, this increases productivity throughout an organization’s workforce by using their strengths most effectively instead of against one another’s weaknesses.
Here are five ways DISC testing can benefit your retention and recruiting efforts.
Constructive change begins with knowledge of one’s motives, personality traits, and problem-solving approaches; this information will help your efforts for positive growth!
A great way to make changes within ourselves is through various exercises explicitly designed around increasing awareness towards what motivates us or stresses us out.
The DISC test also examines our preferred solutions when faced with conflict situations–the result being an improved ability to make better decisions going forward, which leads to tremendous success overall.
Teams are the building blocks of modern workplaces. Learning how to improve communication and understanding between team members will help you develop and be more productive in your current project or new role at work. Improve teamwork and increase productivity with DiSC profiles.
It makes conflict more productive
The best way to resolve conflict is by using a profile of yourself and others. This will allow you and those around you in the workplace to make better decisions that can help move forward.
Conflict isn’t always negative. Sometimes it can be positive. But, if you don’t understand the personality traits of each individual, the disputes may never resolve. In turn, you could lose an employee simply because you don’t understand their personality.
Managers can manage more effectively.
Leadership is about getting the most out of your team. It’s not enough to know what you want and how and when it should be done for everyone else on board to achieve these goals together as one cohesive unit.
Leaders become more naturally effective when they understand their employees’ dispositions or preferred working styles so that everyone can work towards reaching common business objectives efficiently without any wasted time/effort due to unnecessary distractions.
Consistent training based on personality
DiSC profiles level the playing field by giving trainers information they need for training in a non-judgemental way that helps both parties better understand each other’s needs.
If you’re looking for a more effective way to train employees, check out DiSC profiles. It will help both your staff and yourself grow. Understanding each of your employees’ personality types ensures both retention and a higher likelihood of getting hired who has the right personality traits for the job.
Holt Marketing and Management has conducted DISC training for more than 200 companies over the past 30 years. If you would like to learn more about DISC testing, contact Holt Marketing and Management.
Step 6 – Measure employee EQ
While the EQ Assessment is often a Dynamic Quotient Test, it contains no right or wrong answers.
The Dynamic Quotient test
Instead, this test measures your emotional intelligence quotient based on responses you provide regarding personal experiences with emotions such as anger and happiness in various social settings over time–meaning there are many different perceptions about what makes up “high” levels of EI (emotional intelligence).
This means that if individual scores high, then they may have perceived more intense displays from other people during certain events than others who didn’t
Measures how you and employees interact with others
An emotional Quotient (EQ) measures how you interact with people. It’s essential for employers looking to find long-term employees because those with high EQs work best in various settings, so they can often cover other staff members at different levels when needed!
Contact Holt Marketing and Management for more information on completing testing for your organization.
Step 7 – Create standards for how you want things to be done.
The key to ensuring that every team member does what they need to do is to establish and maintain standards.
If you ask the typical manager to document a plan, delegate work, or perform an array of other functions, they will likely do so without ever conveying a standard. Even though programs and evaluations of any type cannot be completed without measures, the application of standards is still widely ignored.
After the fact, the typical manager assesses performance based on implied standards instead of documented. The consequence is wasted time, excessive expense, a need for more corrective measures than needed, and a loss of enthusiasm in the team member.
Managers often neglect to document standards because they typically exist subconsciously and never occur. When you go through creating means, it may not supply you with enthusiasm for writing standards, but it will aid you in their creation so that you can correct this habitual flaw.
To facilitate the creation of standards, you should remember that there are three categories:
A Declarative Standard is an easily understood statement that allows no freedom to decide on an outcome. An example of a declarative standard would be:
“No less than 97% of finished products must pass inspection in the Quality Control Department” would be an excellent example of this particular standard. Anyone can put this standard in place quickly and immediately.”
This category entails a comparison. An example of a comparative standard would be:
“The organization’s gross profit dollars must exceed that of the industry standard by 3%” would be an excellent example for this type of standard as it would require an employee to compare the gross profit dollar income with that of the competition.”
Majority Polling Standards
For the situations you have trouble quantifying, you can utilize the Majority Polling category of standard. An example of a majority polling standard would be:
For instance, “97% of all customer satisfaction surveys must be rated 4-Star or higher” could be a regular Customer Service Standard. However, we do not advocate that you view the term “Majority” literally as it pertains to any percentage or number. (It states that a survey will be taken.) Although 97% may not have an actual opinion, this standard is quantifiable. To put it differently, customer satisfaction may be horrible, but the results of the surveys can be calculated.
Majority Polling Standards are especially helpful as a replacement for one person’s decision, whenever the decision relies only on the point of view or opinion.
Don’t document meaningless standards. The most frequent mistake in creating standards is the documentation of empty statements.
Standards that depend on terms like; high quality, workmanship, tastefulness, etc., are not enforceable because the team members’ decisions are required to make can’t be quantified.
The idea of quality, for instance, has nearly an infinite number of possibilities. Some would identify it as expensive, others as valuable, and some may even consider it well-made.
Whenever these standards are used, the manager must embrace the result the team member delivers, the same outcome as when there are no standards. You can’t criticize as tasteless what another belief is tasteful.
However, documenting specific meaningless standards does occasionally have merit. A standard that encourages everybody to be professional in the work environment has an emotional message that inspires staff, although it is not enforceable without being entirely arbitrary. Though these standards have a practical intent, the results should not rest entirely on them.
Your initial endeavors at documenting standards may be irritating and humiliating. They typically are for almost everybody. As in everything else in life, you master something through repetition. The more you document standards, the more you will excel at it and the stronger they will get. The impact on your business will be significant and measurable.
Step 8 – Establish KPIs to measure success or system failure
As you begin to make changes within your organization, it is essential that you measure the impact of those changes. Measurements are indicators of whether or not your actions have an effect, what type of impact, and how much of an effect.
Knowing what is working and what is not is influential in helping you to evolve into a highly profitable enterprise. So, knowing your KBOs and KPIs will enable you to measure and interpret your measurements.
Key Performance Indicators (KPIs)
KPI’s are the measurements of your organization’s situation compared with the Key Objective of your Strategic Objective. Examples include sales, gross profit, productivity, customer satisfaction, sales growth, product and service quality, and more.
All systems have input and output that can be measured. Measurements versus goals uncover variances that tell how well or how poorly parts of the system are working.
Intangibles are typically personality or behavior-related and are not measured by complex data but by perception or opinion. Intangible KPIs include tracking non-measurables such as attitudes, employee morale, team atmosphere, company image, and so forth.
Managers are responsible for the performance of their subordinates and have oversight of the entire department they are responsible for.
Managers must develop systems and training that guide employees through methods, actions, and standards to achieve budgets and goals.
Organizational structure, hiring practices, pay, and capacity planning together ith assists the manager in achieving the strategic objective.
The definition of KPI
- It must be critical to the achievement of the objective.
For example, the time required to perform the units or classifications of work by salary or pay grade position.
- It must directly influence the indicators through the performance of its employees and systems.
- It must be an indication of future performance.
Revenue represents a significant component of output. Customer acquisition and delivery of products or services constitute just two KPIs, but these drive everything else in the organization.
How to calculate
To calculate the most accurate KPIs, you would need to ask the following questions:
- How many leads equal a sale?
- How many sales and customers will it take to achieve the strategic objective?
- What labor and other sales costs are required to achieve the strategic objective?
Labor and total pay represent a significant component of overall costs. Direct labor costs are charged to a job. Indirect labor consists of non-billable work that supports direct labor, such as Administration, Management, etc. Salaries should be market competitive, but total pay should be based on performance and contribution.
Highly effective and successful organizations use KPIs to assess performance and set goals. There are three types of KPIs; process, input, and output.
The process includes the functional activity of the organization and is designed to measure the efficiency and productivity of the operations.
Input KPIs are related to critical resources and are designed to measure the number of funds and resources used.
Output KPIs are related to services or products produced and are designed to measure the financial and quality of the organization’s activities.
The KPI analysis process
- Select a KPI.
- Select a benchmarking target.
- Collect the data.
- Analyze the data against the benchmark.
To improve your results, innovate the system.
Step 9 – Create scorecards; employees want to know
How to assign and measure the work
Now that you know what jobs need to be done and what each entails, you must assign a person to each position. With job descriptions in hand, you can best match skills and personalities to the tasks of each job.
As the business owner, it is imperative that you delegate responsibilities to those best qualified to handle them. This maximizes the contribution of each staff member and makes the routine operations of business less dependent on you.
As you assign the work, make a formal commitment that you and your management staff will assist employees in both personal skill and professional growth areas so that the responsibilities of each job are sure to be addressed.
This “deal” between management and employee creates a bond and promotes a willingness to work together for the company’s good. It helps dissolve any “them against me” feelings between management and employees; instead, the employee is proud to be valued and trusted with specific responsibilities.
A measurement must be done to ensure each job is working according to plan. We call job description measurements scorecards. To begin, use mathematical formulas that will lead to achieving the strategic objective. Don’t worry about accuracy when you start because testing is required to understand exactly what goals are needed.
By studying the number over time, better numbers will become more evident. Remember, your people are the heart of your business, so it is essential that you invest time and resources into helping your team to do their best work for you.
Step 10 – Get everyone identifying problems, get them solved
As I have worked with several businesses to correct their issues and significantly improve their profitability, I have determined that problems, failures, and variances reoccur because the system involved has not been documented or flawed in some areas.
By documenting a statement that identifies the problem, a system can be created to correct this issue. This can be done to fix the specific issues holding back your business.
The Problem Statement
Identifying and stating a problem is necessary to evaluate the situation, and a plan can be established to correct the problem.
I use five different tools to help document, clarify, and essentially diagnose the problem. These include:
The Problem Log
My clients use this form to document problems as they occur, along with the complex system, the measurables involved, including hours lost, money lost, and your idea of its priority to be corrected. Problems that reoccur continue because management has failed to act on them systemically.
The SMART Tool
We use the SMART Tool if the issue involves something measurable. This tool directly addresses the Problem Statement. The objective is to improve the metric from an established baseline to a new goal. Six Sigma uses the acronym S.M.A.R.T. to qualify the project. It must be:
(S) = Specific purpose, outcome, or objective.
(M) = Measurable, i.e. cost; timeliness; quantity; quality; etc.
(A) = Aggressive, but attainable – provide worthwhile returns.
(R) = Relevant – objective must be relevant to your business goals.
(T) = Time-Bound – must state the duration and date for reaching your objective.
The SMART Tools form documents
- The Measurable to be Improved
- The Current Baseline
- The Objective or Goal
- The Date for Improvement
The System Development Form
If the issue mainly involves a method, use the System Development Form or the Process Mapping Worksheet. This starts with a business systems strategy plan by function – Management, Finance, Marketing, Operations, Lead Generation, and Lead Conversion.
Using the Process map, we map out from the first step to the last step in each system. Use a Process Map Worksheet to outline each step to document and evaluate the systems in place. The resulting operations manuals help train, recruit, and reduce the risk of people’s failures.
Preliminary Planning System
We develop actions to correct the problem using the Preliminary Planning System.
The Root Cause Analysis Form
This is used to conduct a thorough evaluation of one problem at a time to determine its impact and importance.
This process of identifying and correcting each business problem may seem a bit tedious. It is! But it is necessary to fix the issues that will eventually destroy all you have worked for and built.
Once these problems are corrected, and systems are in place to keep them that way, your reward for the effort and commitment is better cash flow and a path to growing profit.
Step 11 – Time and priority management without micromanagement
Priority management is the method to help you maximize your time and efforts. Everyone has the same 24 hours in a day and 168 hours in a week.
- So, why do some CEOs, CFOs, managers, or employees accomplish more in that time than others?
- How can some companies compete in multiple markets, develop new products, and forge into growth markets while similar companies with similar capabilities are not?
- How are some companies able to achieve more with a smaller workforce?
- How can some business owners take vacations while others work 90 hours a week, every week?
The answer to all of these questions is the same: Time management and delegation.
It is imperative to block out your time to maximize productivity. The three blocks of time to document are:
- Organization / Planning / Training / Preparing / System Development
- Days or Time Off
When blocking your time, you must take into account the following:
- Strategic Objective
- Organizational Chart
- Job Description
- Routine Tasks
- Special Project Tasks
- Calendar Scheduling
- Problem Log
- Work Variance or Work Stoppage
Time is one of the most valuable resources a person or company has and can be easily underutilized or wasted. If you asked most people if they make the most productive use of their time on the job, they would answer, “yes.”
If they were also asked if they need time management training, they would answer, “no.” Most people judge time management by how busy they are: if they’re busy, they don’t need it, and if they’re not busy, they don’t need it.
Yet, unless there is a record of how time is spent, there is no way of knowing if the best use was made of the time.
Time management becomes more vital with corporate advancement due to increased responsibilities and oversight. Effective time management is more than taking control of your workday; it’s a way to gain time and efficiency by working on the most important tasks every day.
The first step in taking control of your workday is to complete a Daily Time Log of how you spend your time for a month. To harness the power of time management, your key personnel should also track their time with a Daily Time Log for a month.
These logs will give you an accurate picture of how effectively time is being managed and increase the company’s efficiency. The tools used to facilitate Priority and Time Management include:
- A daily time log – to document time and tasks
- A daily planner
- A calendar system – such as Google calendar
- A priority schedule
- Capacity plan
These tools will help you to see how you are spending your time. Then you can review, analyze, adjust, and plan your time better going forward.
Step 12 – Coaching and mentoring employees
Every successful team has Coaches that train and mentor.
Coaching and mentoring both focus on the individual. Coaching and mentoring can enhance morale, motivation, and productivity and reduce staff turnover as individuals feel valued and connected.
Coaching and mentoring programs generally prove to be popular amongst employees as coaching achieves a balance between fulfilling organizational goals and objectives while taking into account the personal development needs of individual employees.
It is a two-way relationship with the organization and the employee gaining significant benefits.
There is also an increasing trend for individuals to take greater responsibility for their personal and professional development. Both coaching and mentoring are processes that enable both individual and corporate clients to achieve their full potential.
Coaching and mentoring share many similarities, so it makes sense to outline the everyday things coaches and mentors do.
- Evaluate the outcomes of the process, using objective measures wherever possible to ensure the relationship is successful and the person is achieving their personal goals.
- Encourage a commitment to action and develop lasting personal growth and change.
- Observe, listen and ask questions to understand the person’s situation.
- Support the person in setting appropriate goals and assessing progress concerning these goals.
- Use questioning techniques to facilitate employees’ thought processes to identify solutions and actions.
- Facilitate the exploration of needs, motivations, desires, skills, and thought processes to assist the individual in making real, lasting change.
Mentoring and coaching skills needed
Mentoring is not simply answering questions and giving advice; it requires a unique set of skills and practice. A mentor needs to:
Create an open and supportive climate for discussion
Seek to develop trust by encouraging open, two-way communications; this often means sharing personal experiences or difficult times you went through so that the mentee knows that they can discuss challenging issues.
- Respect the mentee’s individuality. Your mentee may or may not have a similar style.
- Be patient.
- Make it clear that you hope to learn from this relationship.
Acquire good listening skills
Most of us need to improve our listening skills; we tend to talk more than we listen and interrupt people more than we should.
- Ask open-ended questions to get your mentee to open up as much as possible.
- After listening fully to a response, ask good follow-up questions to demonstrate genuine interest.
- If you do not understand something, try to paraphrase it to know what the person is saying.
- After you’ve discussed an issue in one conversation, be sure to ask how the situation has progressed next time you meet.
Provide constructive feedback and advice
- Give a balance of both praise and constructive feedback on how to improve.
- Always focus on systems that can be changed (not personality traits!).
- Help your mentee make goals specific and realistic with target dates; monitor progress, help them adapt plans when necessary and provide ongoing encouragement.
- Do problem-solving with your mentee when issues/barriers arise. Do not feel that you have to have all the answers but rather help your mentee think through strategies and options.
- Consider and discuss additional ways for your mentee to get advice and information they need.
Be prepared before the meeting by reviewing job descriptions, scorecards, problem logs, and variance reports.
- Measurable variances from plan.
- Position results.
- Actions achieved since the last meeting.
- Action items are to be completed by the following assessment.
Coaching meets with employees to achieve the results presented in the Employees’ Role Description. The process includes a review of goals, variances, challenges, reports, and systems.
The employee coaching worksheet is completed, and a copy is made. Variances are calculated, and the systems’ cause and effect are reviewed.
Complete action plans to correct variances such as systems innovation, training, or failure to follow the system. Results from the previous meeting are reviewed and completed.
Non-measurables are discussed, including attitude, ideas for future improvements, employee comments, and spirit are also rated, and a date for the next coaching session is made.
A good employee is committed, believes in the work they are performing, is competent, and wants to learn and help the organization in any way they are asked to help get tasks completed on time.
Step 13 – Develop a Management oversight loop
Five Reasons Why Oversight Increases Revenue and Reduces Cost
- Without oversight, people tend to do what is accessible at the time, which is not the best way and causes details to be missed, errors, higher costs, and customer complaints.
- Without management oversight, people do what they think is correct and incorrect according to the system – if this is not corrected, chaos occurs, quality drops, and money is lost.
- If there is no oversight, conflict, confrontation, or lack of communication cause productivity will fall, and profit and quality will drop.
- Without oversight, company balance is lost because departments and function managers believe their area is most important, causing other departments to malfunction, which in turn causes their department to fail, they lose skilled employees, and the business fails.
- If a manager goes more than one week without checking the KPIs and job progress data input, people forget the system and dramatically reduce productivity and quality control.
Management oversight is defined as overseeing people and processes to reduce the risk of failure while achieving goals. Oversight includes:
- Visual on-site observation
- Reviewer reports relative to the work
For the management process to be efficient and effective, managers must master the systems and apply them consistently.
A manager equipped with this training will better focus employee efforts on achieving organizational and individual goals.
What is oversight management?
Oversight management is the process of:
- Planning work and setting expectations
- Continually monitoring performance
- Training the skills to perform
- Pay for performance
The manager meets with employees to create their daily and weekly plans, including forecasts and schedules. The manager has measurable goals that align with the Organization’s strategic and operational plans.
In this planning stage, the manager can explain how their performance directly impacts how the Organization and work team will consistently achieve their goals through company work procedures.
Oversight monitors employee progress continuously at the work site throughout the work schedule. Utilizing the Oversight Loop, managers can constantly monitor employee performance to ensure they complete their work accurately and timely.
Monitoring allows the manager to make corrections or adjust a timeline to produce the desired outcome of successfully achieving the work unit’s goals. It also allows the manager to make employees aware of their progress, whether favorable or unacceptable.
Should the manager determine, the employee has unacceptable work on any critical element, oversight enables the manager to identify the problem early and get a system in place well before the errors cause failure?
The manager will determine whether employees need additional training from continuous oversight to achieve their assigned responsibilities.
It is important to remember that employee development includes remediation and recognizing good performance. Types of action could include:
- Formal training (classroom)
- Details of systems in process on site
- Coaching or mentoring
- Informal training (online, books, videos)
- New additional responsibilities
The manager will use the knowledge gained from overseeing the employee’s performance during work to compare that performance against the employee’s position and standards and assign a rating of record.
Final ratings should not be a surprise to the employee, particularly when the manager and the employee have had numerous non-performance discussions during
The rating period.
Pay for Performance
The manager must make meaningful distinctions when granting compensation. Compensation amounts should be distinguishable between different performance levels that are entirely successful or above. Performance management should support compensation decisions.
Our organization has policies and procedures that measure performance management unique to the company. Managers must consistently apply good planning, monitoring, and training guidelines to follow the systems. Refer to your policy and procedures manual for more information on oversight management systems.
To determine whether a manager has implemented the oversight management system successfully, managers need to answer the following questions:
- Does my application of the design encourage better performance?
- Has performance improved during the time I oversaw the work?
Positive answers reflect the practical application of good performance management policies and practices.
Integration of these strategies into your organization will keep the people you value in your organization. Implementation is not an overnight process; it takes several months to implement the systems fully.
Without the systems in place, you risk maintaining a revolving door of employees simply because you are not organized and managing your employees. While this section focuses on retention, it is also crucial in recruiting employees.
But first, you must attract the right people, which begins with employer branding.
4-Employer branding strategy, recruiting the best employees
Employee Branding is required if you want to recruit employees across multiple generations. It is the process of creating a unique identity for your business that stands out as to why your business is the one to work for versus your competitor. It should answer, “Why should I work for you?”
When it comes to recruiting, Employees are the ambassadors of your company, and employer branding is one of the most important factors to consider. When it comes to recruiting from different generations, the methodologies are different. Still, the goal is always the same: identify and attract high-quality employees who will be a good fit for the company.
A well-thought-out employer brand will take all generational differences into account so that you are attracting the correct type of talent to your business. Each generation has different wants and needs, so it is crucial to understand what makes each tick to reach them effectively.
What is an employer brand?
You likely already know about corporate branding when I start talking about branding. But have you thought about your brand as an employer? You probably haven’t had to yet, but if you are reading this, you likely have issues retaining or recruiting enough employees for your business operations.
While a simple job posting in the past was enough to attract interest in a position, now you must show the prospective employee that you have a job available and why they should choose your company over another.
You likely established a brand for your product or service to stand out from the competition. As an employer, you must do the same to make your company stand out from the competition as the place to work.
With the dwindling numbers of quality people looking for work, you and your competitors are likely looking for the same person. Like the seller or buyer markets in housing, the current economic climate puts the prospective employee in the position to have many choices to choose from. It is currently an employee market!
If your website is old and outdated, your turnover numbers are high, and you have bad reviews from previous employees, you will quickly go to the bottom of that list. Prospective employees have a multitude of options available to them to research you.
Can employer branding help your business grow?
Employer brands are essential in the job market. They provide a way for employers to differentiate themselves and attract qualified candidates, which reduces costs per employee while ensuring competition among other businesses looking to hire yours!
The best thing about a compelling employer brand is that what makes you successful as an employer is already in place. You just need to highlight it. This program allows people at any level within your organization to access information on improving corporate values through storytelling techniques; we’ll show you how such practices lead not only towards better performance but a happier team.
Employer brand vs. Company brand
Your employer brand is the reputation you have at your place of work, and it should never be confused with the company or business branding.
The former describes what people think about when they see that name on an organization’s materials. At the same time, the latter defines where someone fits into society as part of their job duties – whether good/bad depends mainly upon how well-done this process was!
13 steps to a successful employer branding strategy
Employer branding starts as a system that is integrated into human resources strategies. It is part marketing, part salesmanship, and part human resources. It involves all levels of the company.
When we look at the internet today, it is filled with reviews. When considering a job, the first thing an employee does is research the company on the internet. They want to know what the culture is like, the values, and compatibility.
Sharing stories about employees is highly effective in branding your company as a great place to work. You can also use videos, podcasts, or articles to reach potential employees.
Employee Branding has become one of the most important aspects of branding and marketing your company for this generation. When it comes to recruiting from different eras, the methodologies are different. Still, the goal is always the same: identify and attract high-quality employees who will be a good fit.
Step 1 – It starts with leadership
Leadership involvement with employee brand efforts is crucial. It’s critically important to be able to contribute to such initiatives by acting as models for job seekers as well as employees.
It is estimated that 75% say their business is better off by promoting and communicating their values and missions on a more personal level via social media platforms.
Step 2 – Set actionable goals
An employee branding plan should include specific, measurable, achievable, relevant, and time-bound goals (SMART). Your goals might consist of increasing web traffic to your careers page, improving the number of applicants you receive, or reducing the amount of time it takes to fill a position.
Step 4 – Identify the gaps in your existing employer brand
Developing an employer brand review will enable companies to assess candidate branding and employee perceptions in both business environments and employees by developing employee branding strategies.
This effort aims to show how people feel about the company, enabling you to answer essential questions. It will assist in identifying and correcting the gaps between company presentations and determining their perception of the hiring manager and employee.
Step 5 – Examine your job application process
The way you ask for resumes, the questions you ask during interviews, and the way you make decisions can all send signals about your company culture. When crafting an employer brand, it’s essential to make sure that every step of the process reinforces the messages you want to send.
Make it easy. An example would be a simple landing page that allows a candidate to express interest without having a resume. Like most relationships, just begin a conversation. Maybe they haven’t had time to create a resume and are just starting to get interested in moving from their current company.
Step 6 – Make sure your website is up to date, has a careers section
The company website is likely the first stop on any potential candidate’s radar. Older-looking, outdated websites will show you are not so concerned about how you’re perceived online. Very important for all levels, young or old.
Create a section of your website just focused on careers. I am not referring to listing your jobs currently available; these are dull. While it would be essential to have those jobs listed, they should be at the bottom of the list.
Priority is selling the candidate on why your company is THE company to work for. If you aren’t doing that, you will not stand out and blend in with what most companies are doing today.
These pages should highlight why I would want to work at your company. An example would be several company employees who candidly talk about what they like about working for your company.
Step 7 – Define your candidate personas
For employee branding, a successful business requires a knowledge of the personal character characteristics your candidates should have. The candidate profile gives you a picture of the ideal candidate and his career potential. DISC testing would be a great way to list. Still, the characteristics you are looking for.
If you follow my advice from the last section on retention (See Step 4), you should have an excellent idea of the necessary and essential traits for someone to succeed in that position. A high D, high I will be great at sales; however, they will fail if stuck without interaction with other people. A high S, high C will fail at sales.
Using the DISC data is a great way to identify who will be successful in specific roles. Use this information to create the job description and advertising for the job role. The candidate will feel as though you are speaking directly to them as there are specific known profiles that work best in particular positions.
Step 8 – Craft Your Employee Value Proposition
When creating an Employee Value Proposition, it’s essential to remember that it’s not a one-size-fits-all solution. Every company is different and will have other benefits and perks.
However, some key elements should be included in every EVP. These include company culture, compensation and benefits, work/life balance, job security, and career development. EVPs should be easily accessible to your employees on your Intranet or Career site on the company’s website.
It’s also important to know what makes you different than other companies in your area that are competing for talent. This is true whether you’re a small, medium, or large company. Articulating what makes your company unique is an increasingly important skill for leaders today as many employees actively job searching.
Creating EVP statements that highlight the benefit of working for your company can help recruit new talent and cut down on turnover rates by increasing your employees’ sense of value and investment in your company.
Five critical elements of an Employee Value Proposition
When crafting an Employee Value Proposition (EVP), it is essential to remember that five key components make up the entire package. These include company culture, compensation and benefits, work/life balance, job security, and career development. Let’s take a closer look…
1 – Company culture
What is it like working within your company? Often one of the most asked questions I see asked today. Many people are looking for a good work culture fit when choosing a job or starting a new job search.
Although this concept isn’t brand new, many employers and companies still fail to grasp its importance in creating an appealing company culture that will attract top talent. Companies need to understand a value proposition in their culture. They need to identify what that is.
2 – Compensation and Benefits
This is one of the most important factors for employees when it comes to their job. How does your company compare to others in this area? Do you offer a tremendous 401k plan? How about matching contributions? Are the benefits good? These are all essential questions that employees want to be answered.
3 – Work/Life Balance
Employees are looking for employers who can help them find a good balance between their work and personal lives. This includes flexible working arrangements, time off, and paid time off. It’s normal to expect employees to put in a certain amount of hours and expected work each week, but what other policies do you offer the employees?
What about workspace? A company’s employee value proposition should include workspace options including remote, hybrid, or on-site working requirements. The increasing desire for flexibility in workplaces forces employers to review their mobile strategies and make provisions for modern work-life balance needs.
4 – Job Security
One of the most critical factors for many employees. They want to feel like their job is secure, and if they worked hard enough, they could rise through the ranks. Are you transparent with your employees about layoffs and how those decisions are made? Do you offer severance packages? These are all critical things to consider when looking at job security.
5 – Career Development
Employees want to feel like their company is open to giving them growth opportunities. This may be in training and seminars, or it could even be a program supporting employees who want to graduate.
Employees want to know that they will have opportunities to grow their careers at your company. Does your company offer training and development programs? What are the options for advancement? Are there mentors or career paths that employees can follow? If you fully implement my recommendations for retaining key employees, showing prospective employees the systems that you use as a company will be a great selling tool for why they should choose your company to work for.
Step 9 – Conduct employer brand training
Marketing to employees is made available through branding education and training processes. Providing employees with examples for the promotion and marketing of the brand demonstrates a good understanding of the brand.
It’s a good idea to make your brand image visible and engaging to everyone at work. Naturally, all employees should associate their messages with the company to increase their confidence in your brand. This will translate to better reviews online and will also trigger referrals.
Some companies are offering referral bonuses. You will have a much higher likelihood of getting someone on board with a referral, no different than a new person doing business with your company.
Step 10 – Optimize your employer branding channels
It is essential to identify the most effective marketing methods as a company name and gain visibility from its candidate profile.
Social media is the primary channel businesses intend to expand their employer brand; they have websites (73.1% ). Therefore the organization needs to define the corporate brand in the prospect profile when researching prospective employers to enhance their marketing effectiveness.
Determine your distribution mix
Some channels are not the correct route for any business, so you must find a perfect match and place that the ideal applicants will focus on.
Owner-funded channels, such as your career page, can probably serve as your primary source. Have fun and discover the worlds of paid & earnings marketing.
Advertising on the job boards could help someone get more exposure for your message. It increases your potential for shareability if you invest in quality content—and that’s a good way: How do we engage recruiters?
Step 11 – Ensure positive candidate experience
Employee branding does not stop when candidates are selected to apply for employment. In addition to helping candidates with their recruitment efforts, employers use candidates and employees as branding assets.
Talent Adore says 80% of job seekers say hiring employees show their value in people. After obtaining less than perfect qualifications in their job interviews, they don’t need jobs more often. A majority have ceased purchasing the services offered by that company, even telling friends.
Step 12 – Define relevant KPIs
A KPI is a measure that determines whether and where an action or strategy has been undertaken and how it would impact society.
For companies who are seeking to decrease their recruiting costs by 20% over six months, the cost of hiring should be a key metric.
Evaluating ROI for an employer branding program is advisable to look at measurable factors such as quality, perceived value, and differentiation. You could create a topic for conversation around the employer identity to detect essential insights about the employer branding.
Never neglect monitoring websites and engaging reviewers even when they are negative. Glassdoor: Over 85% of people report their experience with companies improving, resulting in employee reviews. Glassdoor found that over half of people feel like employees’ expectations can improve.
Step 13 – Don’t be afraid to correct the course
You’ll need to make changes to your company’s brand strategy to address weaknesses or maximize upcoming opportunities. An employer branding strategy is not a set it and forget it strategy.
It will evolve just as your business will. Be sure to monitor your HR ROI and set baselines. Continuously measure against those benchmarks to quickly identify when you need to adjust or improve.
There is no downside to an employer branding strategy
The benefits of maintaining good employer branding have no side effects. An attractive employer branding helps attract qualified, professional employees and improves your company’s reputation.
Never halt improving your reputation. On this basis, your company message is constantly in touch with the potential employees you employ to improve your organization with improved performance. Employer branding is good for business.
How to get it done
Will you change your strategy?
You can no longer just place an ad for a job and expect a variety of candidates to choose from. The idea that Joe, your best employee of 15 years, would never leave, think again.
You can no longer be complacent with what keeps your existing employees in place because people who want to lure them away from your business are contacting them already.
Everyone and anyone is accessible, including your key people
Headhunters are likely already talking to them, just waiting for the employee to become unhappy and choose to leave. With the ability to contact anyone at any time, opportunities are in front of your employees that have never been there before.
Competitors will come after your best people
As your competitors get desperate for help, they will target your employees simply because there are no qualified candidates in the pipeline.
At some point, most anyone will make a move, especially if you are not paying market rates or keeping up with the benefits currently being offered in the marketplace.
If you don’t change your strategy, you will be out of business
If you haven’t experienced it already, a lack of help will prevent your business from growing. Without the ability to grow, your business will begin to decline, and you will likely not be able to maintain profitability.
In essence, you will be going out of business unless you approach your employee retention and recruitment efforts. The fact is that any company with a desire to make changes that will improve its ability to attract and keep quality people is available.
Can you get it done internally?
To be honest, you likely won’t, because if you haven’t innovated your current people processes, you may already be in trouble. Here are some ideas for you if you haven’t started…
You can make it HR’s problem
That may work; however, HR has always done is no longer working. HR is not training in marketing, and marketing is not taught in HR. In either case, without a well-planned out strategy, you will likely keep trying things one at a time while your business declines due to lack of help.
Could you recruit your Talent Acquisition Specialist?
This may help your recruiting, but if you haven’t focused equal effort on retention, they too will fall short. A fully integrated approach is needed where your strategy focuses on retracting employees and continuously recruiting new employees. Do you have your system in place?
You can hire a Headhunter for each position
Hiring a Headhunter, aka Recruiter, is a viable option to get someone fast. But, are you ready to pay out $20-30,000 for a qualified candidate? Have you considered what adding $20-30,000 of overhead per hire will do to your profitability? Beyond the cost, recruiters have one motivation.
Headhunters have one goal, find someone to fill the seat and get paid. They are not trained in management so getting a qualified candidate in the chair is their only goal. They don’t care how long they stay. That is your problem. So even though hiring the Headhunter maybe your best option, you may quickly lose that employee if you haven’t focused on the retention strategy for your business.
Get outside help?
Ideally, you need some objectivity in your retention and recruiting processes. You can’t continue to do what you are doing. I don’t think you would have read this far if it was working.
The first step is to take a complete review of your strategy, the recruiting process, the employee training process, and the management processes. Objectivity is difficult to find internally. If you had that ability or time to do that yourself, wouldn’t you have done that already?
What is your best option to keep your best employees and hire new ones?
Bringing in an outsider maybe your best option. Someone independent who has no emotional attachment to the business is the best way to identify problems through the eyes and objectivity only an outsider can bring.
Once the analysis is completed, the objective outsider can present innovation, and strategic change solutions can be delivered to improve the businesses’ ability to attract and keep the quality staff they require to sustain and grow.
Business leaders that can achieve their desired capacity will create a substantial competitive advantage simply because they have the trained people to get the work done.
As the economy begins to grow again, which it always does, the business will be prepared to take advantage of the situation into the next generation with confidence in a long and prosperous future.
High-performing companies feel they have more to lose than underperforming ones. Logically this makes sense in terms of risk but not innovation. All companies must make changes to stay afloat and lead the pack continuously; they need to learn faster than their competitors.
Breaking the habit of “we have always done it this way”
Management has built careers on their approach to managing a department, a team, or an entire company. They are psychologically invested in that approach because it has brought them success.
Although they may know that success breeds complacency and that winning processes need reviewing and revising, they experience this loss.
Perhaps, for this reason, there are few cases of companies remaining successful over many generations. This is terrible news for the shareholders who would like secure returns over the longer term.
New solutions and changing working processes demand new skills, especially strategic Systemization.