Increasing Profits by Increasing Employee Performance
You can have great products, fantastic services and all the capital equipment in the world, but without great staff you won't get far in today's business world. Employees make or break your bottom line. They are the link holding companies together and they represent your brand to your customers. "Staff need to work with me," a client wisely mentioned to me once, "not for me." Without a solid team behind your business goals, they become difficult to fulfill. Investing in staff development means connecting your business objectives with your employees objectives and is crucial to success. Below are some suggestions.
Change Performance Management
An annual performance review is often the only chance an employee is given to have a conversation with a manager to discuss their targets, goals, outcomes and performance. Too many businesses rely on this once-a-year sit down. Frequent, consistent and regular communication and coaching is more important for employees and management and to your bottom line. Giving and receiving regular feedback enhances communication, leads to innovation and dialogue and gives managers the chance to act on further coaching and training opportunities to drive employee engagement. Performance management needs to be a dynamic, year round activity.
Keep Your Employees Engaged and Motivated
Sick days are costly to any company. So is an unengaged employee. Gallup research indicates that disengaged workers cost U.S businesses $350 billion a year1. Hewitt and Associates found each disengaged employee costs a company $10,000 in profit annually2 and estimated that at any one time up to half of a companies employees are disengaged, but....look on the bright side. An engaged employees averages 27% lower absenteeism3, is motivated to work and finds ways to improve your business. People perform their best when when they care about what they are doing. Employees who are engaged go above and beyond their regular duties and lift the standards of an entire team.
Re-Invest in Staff
Most businesses use a 'pay-for-performance' compensation model. There are many other reward and staff investment possibilities. Paying for talent involves rewarding employees who represent the most value to your company and ensures they stick around and continue to perform. This model means not everyone gets the same bonus or salary increase and involves some tough calls so clearly define criteria for pay increases and bonuses. Pay-for-talent can inspire others to lift their game and if performance reviews are done regularly, this can happen sooner rather than later. Other human resource investment options include offering your staff and management coaching or training possibilities and rewards tiered to length and duration of service to your business.
1.'The High Cost of Disengaged Employees.' Gallup Management Journal, April 15, 2002
2. Aon Hewitt Consulting Services Research
3. Wagner R, Harter J. 'The elements of great managing.' Gallup Press, 2006
Grahak Cunningham is a four time finisher of the 3100 mile race, the world's longest certified foot race. He has also lead teams across the Nullarbor and around New Zealand and Iceland and has over 15 years experience in sales and marketing in the health care industry. Contact Australian motivational and keynote speaker and trainer Grahak Cunningham at firstname.lastname@example.org or on +( 61) 405 179 551.