The big R word — recession — has
reverberated through the halls and
executive suites of companies across the country. Businesses need to reduce
expenses and also ensure their long-term
viability.
“During tough times, companies look
at cost-cutting techniques,” says Mari
Pichardo, director of human resources at
Tampa Bay WorkForce Alliance (TBWA). “If
approached incorrectly, these cost-reduction measures can oftentimes negatively
impact employee morale and security.”
Smart Business spoke with Pichardo
about the direct and indirect costs of losing
employees and cost-effective strategies to
increase morale in tough times.
During times of economic uncertainty, how
can you keep employee costs down?
Retention is key. Retaining quality employees will keep your operations running
smoothly and save you money in the long
run. When you carefully observe and
proactively address issues, you have a better chance of top performers staying within your organization. A purposeful manager will keep the pulse of his or her team
through formal and informal surveys,
impromptu discussions and even break-room conversations. Information gleaned
from that can help you determine if growing frustrations merit further action.
Conduct exit interviews to determine the
reason for employee separation. Try to go
beyond typical parting answers to ones
that give you valuable information on how
you can improve your retention efforts.
What are some of the drivers of the high
price tag on employee turnover?
To succeed, some of the best companies
employ strategies that minimize employee
expense while increasing productivity. The
ones that do it well invest in their highest
commodity — the workers. The expense of
replacing an employee is usually estimated
to be one-third of his or her annual salary.
Although that ratio varies by employer and
position, every time an employee leaves the
company either by choice or by downsizing, the company bears a significant cost.
These expenses include temporary staff,
overtime, loss of productivity, lost customers, recruitment, training and HR, and
the hiring managers’ time.
What are some creative, inexpensive ideas
for boosting employee morale?
Fostering a comfortable and inspirational
atmosphere doesn’t cost much, but the
return on the investment can be immense.
Happy employees who feel a part of the
team are less likely to look elsewhere. Here
are some ideas for creating this positive
environment:
- Encourage and support innovative and
creative ideas from everyone on each new
project. - Encourage fun at work; host regular
social activities to foster unity among the
staff. Invite spouses and significant others
to company functions. - Value the family time, not just the
employee. In summer, consider half-days
off or early dismissal on Fridays. Not having to fight traffic eases the mind and leads
to productivity. - In winter, a bonus is good, but just as
good may be a day for personal shopping and holiday preparations. - Consider bringing in dinner for
employees who work late on a project. - Provide easy access to dry cleaning or
car-detailing services. Your employees still
pay for these perks, but they greatly appreciate the convenience.
What are some ways to get the most out of
your employees?
Respect your employees’ lives outside of
the office. Your expectations for excellence
can be balanced with your staff’s freedom
and personal lives. The company’s priorities
and the employees’ need for balance don’t
necessarily have to compete. Results are
what matter most. Whenever possible, providing flexible hours or allowing employees
to work from home shows them that you
value the lives they have outside the office.
It’s relatively easy to permit employees to
work from home by using different types of
mobility programs. If the nature of your
work isn’t conducive to working remotely,
consider flex scheduling.
Also, insist that your employees take vacations. Studies show that employees who
take time off experience less stress, lead a
healthier lifestyle and have a lower risk of
heart disease. Furthermore, employees that
have more balance between life and work
are less likely to suffer burnout.
What else can companies do to demonstrate
that they value employees?
Build a loyal employee. Loyalty develops
from respecting an individual’s abilities and
helping that person to become even better.
Encourage management to identify and
nurture talent within the company by
allowing all employees to develop their professional skills and realize their full potential. Subsidizing professional advancement
courses builds loyal employees and gives
you the chance to consider your internal
talent pool for positions critical to your
company. This investment increases employee satisfaction and saves money on
employee start-up.
MARI PICHARDO is director of human resources at Tampa Bay WorkForce Alliance. Reach her at (813) 740-4680 x263 or
[email protected].
