How to Increase the Value of Your Business – Company Culture and Employee Retention
As a small business advisor, it does not take long for me to get a good feel for company culture and employee retention after hanging out and seeing how the owner(s) and its team members interact with one another.
You can also learn a lot just by seeing how they dress, learning more about their traits, beliefs, the hours they work, how efficient they are, etc. but the biggest barometer for me is how they treat their customers.
There is so much information out there on how to be an effective leader, how to hire the right people, how to retain good employees etc. It can make many small business owners feel overwhelmed.
It is not that much of a daunting task if you have a plan and begin working it in baby steps.
Your people ARE YOUR BUSINESS! With this said, I cannot think of a more important step in business than finding, hiring, and retaining the “right” talent and putting these individuals in the right roles.
People that fit into your culture and that have the right attitude. Experience can help and skill sets can be developed but never underestimate culture fit.
Company culture is a group of people with a shared set of beliefs and purposes. Your company culture is based on your company values so when interviewing candidates, make sure to ask the right open-ended questions that will determine fit.
Also, the person that is most affected by the hire should ideally do the hiring. Here’s a link to an article I wrote that explains how to hire for culture fit.
Keep in mind that buyers for your business want to make sure that the business will continue to run well when a seller leaves their company. They want to inherit quality, long-term, well-trained people that have a good relationship with one another, and ideally, they would like some cross-training in the organization.
Okay, so you have a solid team and the right people in the right positions and have developed a great culture where everyone is singing off the same hymnal page.
Now you must retain them! High employee turnover negatively impacts companies and their ability to reach their sales objectives.
You need to realize the true costs associated with employee turnover and create effective employee retention strategies to help retain these superstars.
A Gallup survey showed that employees were only engaged 32% of the time and that the rest of them are just barely showing up for work. 51% of them are in the process of looking for another job right now!
Business owners should consider providing some benefits, monitoring employee satisfaction, and creating overall strategies to help their human capital create the work/life balance they have been looking for.
This may entail sharing the rewards, profits, providing incentives and recognition before they go somewhere else to find it.
Keep in mind there are many reasons why employees quit but some of the main ones are: employees being treated like children or being told what to do by their Managers instead of being treated like empowered adults where each team member is providing input and taking ownership.
Happy, fully engaged employees are the ones that are using their brains, managing themselves, and making their own decisions. There is a saying that “People commit to what they create”.
Lastly, business owners need to remember the “Golden Rule” of treating others the way they want to be treated and let them do what they are good at.
You can take the Business Value Drivers Assessment to learn how your business stacks up. Feel free to reach out to me with any questio0ns you may have.