If you are reading this, and you are, we are pretty confident in saying that you own a small business. If you don’t own one, perhaps you are considering taking the plunge. In either case, we believe that you want to do what’s best for your business. After all, you aren’t running a company because you hope it will fail.
Let’s take this a step further and assume just a couple more things. When you opened your business, whatever “opening” means in your particular situation, you were probably a one-person show. At most, you had a partner. Now your business has taken off, and you need to hire some employees to handle all of the daily tasks.
That’s scenario one. Here’s scenario two. You are already off the ground and running. In fact, you’ve had a smooth operation going for a few years now. You’re experiencing one problem: You can’t seem to keep good workers. You hire someone, train them, they do some great work and then they… move on. What is happening?
No matter if you find yourself deeply seeded in the first example or the second, we have some advice for you. One of the biggest issues in small businesses, according to the experts, is that owners don’t treat their employees as assets. Your employees aren’t just simply people that do a bit of work so you don’t have to. If they are invested, they are the people that will help your company grow. That makes them some of the most important assets your company has.
Whether you are hiring employees for the first time or are looking for ways to keep who you hire, read on. There are tips that come from HR experts, business owners and others for treating your employees the right way.
Measure Human Capital
You aren’t alone if you hire employees and then sit back and watch. You don’t measure your human capital, because how does one even measure human capital? There are a couple of ways to do so, actually. You can take a look at how much money and time your team is investing in projects compared to what you are bringing in as a result.
If you truly don’t have the time to do this, and you may not, hire a professional who can. Knowing what you are paying your team, how productive they are and how much profit you are making is important. All of these things can be measured against one another to help you make hiring decisions and let you know where your current employees’ talents can be used best.
Invest in Human Capital
Most business owners weigh the average cost of financial capital when making decisions. On the same token, most don’t weigh in the cost of human capital. For example, one company determined, after studying the numbers, that a single weekly meeting among executives cost the company 300,000 hours each year across all departments. Another company discovered that when they totaled all the meetings held by the company, they were consuming nearly 50 percent of their staff’s time.
Before you establish a new initiative or schedule yet another meeting, determine the amount of time that could potentially be wasted. Maybe what you want to say can be said through an email. Perhaps your weekly meetings could be scheduled biweekly. Look for ways to cut down on the time your employees aren’t working actively on a project.
Stay On Top of It
You should be monitoring your employees regularly. We aren’t talking about snooping on their emails or watching the clock when they are on lunch. We are talking about their productivity. Put measures in place that will tell you about your top performers and who may be dragging your company down. If you find who isn’t meeting expectations, talk with them to find out why. There may be a problem with software, with time constraints or even in their personal lives. If you can help your employee work out these issues, they may just make the list of top performers.
Recognition and Reward
When is the last time you took the time to recognize your top performers? If you aren’t doing this, you can bet that moral within your company is low. People work because they have to. People stay with a company because they want to. There’s a difference. When employees feel appreciated, they are more likely to stick with you for the long haul.
Establish a recognition system within your company. You don’t have to go as big as employee of the month or employee of the year. Recognize small successes across the board. Maybe you have an employee who hasn’t taken a single sick day. Perhaps you have an employee that brought in a new client. Celebrate these things! The rewards don’t have to be huge. An extra 30 minutes at lunch, the option to work from home one day or even a dress-down pass can suffice.
Don’t forget that your employees are your most valuable asset. If you don’t know how they are performing, you are making a mistake. When you know what you have and how to treat them right, your business will boom.
Company.com Can Help You Keep Up with Employees
One of the easiest ways to make sure you’re keeping up with employee productivity and recognizing the best among them is to stay in contact with them. With Company.com’s team collaboration software, you can do just that. Contact us today to learn about this and other services we offer, and to start a free trial of our premium software suite.