Our economy is changing. Many Western nations have long been moving towards becoming predominantly service industries. In 1965, manufacturing accounted for 53 percent of the US economy. By 2004, it was down to only 9%. The effects of globalization and outsourcing are being felt by everyone. Not only that, the employer/employee relationship is changing too. It is thought that by 2050, 50% of the US workforce will be working freelance. People are not as stable in their income as they once were. Prosperity is something that one must work towards one piece at a time. In the new hyper-competitive, some might even say fickle, economy, employee retention rates are becoming a concern. Research has shown that one-third of newly hired employees will quit after just six months. As the economy changes, you need to change with it. Here are a few things to consider:
To make sure that you are not spending your profits on constantly replenishing your workforce, you should consider how to make them stay. Incentives are an important part of any job, but they are now crucial. It should be remembered that a business needs to work together to work at all. It is not just your sales staff who should be rewarded for their work. Everybody has their part to play in ensuring your company is a success, and they should all, therefore, be rewarded for it. Performance is a tricky metric to judge, but it should not just be based upon numbers. Your receptionist will be working as hard as your salespeople or your HR department. They deserved to be recognized too.
Besides incentives, one of the universal ways in which you can keep your employees happy is by having a strong, inclusive company culture. This can be difficult, especially as modern companies are often multinational and much of the interaction of their staff is over email or conference call. It is easy to feel left out when you are not in the heart of things. Companies like Fairsail can help you develop an integrated employee experience.
Sometimes the best thing to do is pause for a moment and consider where you are and where you want to be. Perhaps it is time to rethink how you’ve been doing things and make a fresh start. Just as when a person grows older, a company needs regular check-ups too. Once you have settled on a new direction that suits you, you should consider publishing and tracking your progress. This lets everybody else know exactly how well you’re doing but it also shows your employees that you are committed to doing the best for them and for you. Transparency promotes confidence, and confidence fosters success.
All other things considered, there are some things that never change. However tumultuous the economy becomes, there will always be certain principles that remain true. One is to communicate clearly and concisely with your staff, so they know exactly where they stand. Make them feel as if you value them. It will benefit you both.