April, 2008

Hold On To Great Employees

Tips to help you keep the best and brightest in your company.

By Bill Lee

The days of telling employees to do what they’re told and not ask questions went out with the clank-idy-clank of old calculators. Today, employees expect to be told not only what to do, but why it makes sense to do it.

It’s no secret that the job market in most parts of the country is still tight, especially for highly productive people. Even though the softer economy has provided some relief, it’s still not uncommon to see unemployment levels at under 3%. In this kind of labor market, owners and managers have two opportunities to improve the quality of their team: 1) Prune marginal workers. 2) Hold onto your most talented workers. This combination ensures that your company will come out of the current market stronger than ever. Most owners agree that communication between management and the workforce is an important key to holding on to quality personnel. Here are some ideas for enhancing communication in your company.

1. Suggestion Box

If you don’t have a suggestion box, install one immediately. While this idea of giving employees a forum to communicate with management is by no means a new one, too few companies use it. Toyota and Honda, however, are examples of two highly innovative companies that do. They give employee suggestions most of the credit for the dramatic quality improvements in the automobiles they manufacture. Suggestion boxes should be placed in a secure location with easy access. Although it shouldn’t be mandatory that employees sign their names to their suggestions, knowing who made the suggestion does give management an opportunity to reward especially good ideas.

2. Reward Cost-Cutting Ideas.

Most companies tell me that they reward their employees anywhere from 25% to 50% of the first year’s savings from a cost-cutting idea and, say, $25 to $50 in incentive pay for any suggestion that is implemented. I personally believe that it is a good morale-boosting idea to acknowledge all suggestions in writing.

3. Involve Employees’ Families.

Provide opportunities for your employees’ families to get to know each other. Employees are less likely to want to part with this kind of atmosphere. Examples of company activities in which spouse and children should be included are summer picnics, holiday parties, and softball teams.

4. Performance Reviews.

Employees deserve to know where they stand. A formal review is a great way to accomplish this. I recommend a formal review process that includes a self-assessment for the employee, used in conjunction with an assessment by the employee’s immediate supervisor. I also recommend that employees be allowed to anonymously rate their supervisor on a list of specified criteria. This gives management a good idea of how well they are satisfying the needs of their people. (If you would like me to send you a free sample of these performance review assessment tools designed for lumberyard clients, e-mail Bill@BillLeeOnLine.com with “Performance Review” in the subject line.)

5. Training.

Most employees equate company- sponsored training programs with an organization that cares about the employee’s personal development. This year, include training in your annual budget. Some companies also include a set amount in their training budget that key employees can spend on any approved training program. The budgets usually range between $200 and $300 per employee.

6. Open-Book Management.

Let employees in on how the company is doing financially. If you don’t tell them, they will depend on the grapevine for information.

7. Post All Jobs.

Promote from within whenever possible. This gives employees a career path inside the company instead of feeling as if they have to change jobs to advance.

8. Treat Employees with Respect.

Get into the habit of using words like “Please,” “Thank you,” “If you don’t mind…,” “You’re welcome,” and so on. In today’s environment, employees don’t have to put up with disrespect from management. Great people make great companies.

BILL LEE has nearly 40 years of experience in the construction supply industry. A consultant and seminar leader, he is the author of two books: Gross Margin and 30 Ways Managers Shoot Themselves in the Foot. www.BillLeeOnLine.com, 800.277.7888.