June 09, 2010

Don't take your employees for granted!

A recent government report indicates that employees are quitting bad jobs as the economy improves.  It's like 2004 all over again.  Back then, millions went from lock-down bad jobs to startups and good employers when they gained some confidence in the market. 

For the last eighteen months, I've heard employers sniff that "if their employees didn't like the workplace or task load, they could join the rest of the unemployed in line."  While that might have been true in Q1 2009, it's not a long term strategy for talent retention. 

In First Break All The Rules, former Gallup researcher Marcus Buckingham offers the #1 reason people quit jobs: Bad bosses.  These bad bosses have a sense of entitlement, combined with Michael-Scott ineptitude that can lead to a jail break when the recession clouds part. 

And according to this article (More Employees Jump Ship As Economy Improves), it's starting to happen. There are a few implications for you, whether you run a small company or work at an enterprise: 

1.  The current labor pool is weak, gunked up with everybody's B, C and D team from 2007.  In other words, most people (75% or more) that were laid off were laid off because they weren't effective in their jobs and the poor economy exposed it.  Trying to replace people you lose now is a whole lot more complicated than it was in 2006.  

2.  The work experience is as important as the customer experience.  In his fantastic book, Primal Leadership, Daniel Goleman observed that the mood state at work was a predictor of employee engagement - which is the #1 way to retain talent.  Focus on purpose, recognition, empathy and giving people what Dan Pink calls "Self-Directed Mastery".  (For more, check out the RSA Animated Video: Dan Pink on the surprising truth about what motives people)

3.  Give raises, bonuses and incentives as you can afford them.  You might be tempted, for years, to keep thinking that you can't afford any love for your people, and besides, they have no where to go.  Don't rest on that.  Google was handing out bonuses and raises back in '02 and '03, and you can see where that got them on the talent tree. 

Whatever you do, don't take your people for granted.  By the time you realize your company's culture stinks, it will be too late to turn the ship around, and when the economy totally improves - you are toast. 

Posted at 11:58 AM in Business Effectiveness , Business Trends  |  Permalink  |  Comments (4)  |  TrackBack (0)

Comments

Commentor

Be careful, as some employers would do anything to keep their employees without costing them much. Fortunately, I am currently working in a very good firm right now. We usually have SMED presentations and seminars to further increase our production without stress, as well as learning how to cut off unnecessary workload via poka yoke presentations.

Posted by: Cristal Mcmeans  |  February 07, 2011 at 11:07 PM

Commentor

I love this animation series. Follow it into youtube, and you will find similar great videos. :)

Posted by: Frode H  |  June 12, 2010 at 10:33 AM

Commentor

I've been screaming this for years. When will companies and the individuals who run them finally learn? You nailed it when you said "By the time you realize your company's culture stinks, it will be too late to turn the ship around, and when the economy totally improves - you are toast." I couldn't have said it better myself.

Posted by: Denise Dawson  |  June 10, 2010 at 05:53 PM

Commentor

Great article! Organizations do make the mistake of taking their employees for granted, and this often makes the work experience for these employees unpleasant. Apart from the incentives and raises that have to be given to motivate them, companies must learn to transfer serious responsibility to their employees. Like Vineet Nayar has said in his book ‘Employees First, Customers Second’, organizations must follow the principle of the ‘Inverted Pyramid’. They must turn traditional hierarchy upside down, and make employees directly responsible for the customers. This transfer of trust and responsibility gives the employees a feeling of being important, and thus, helps them push their levels higher, and they work harder to achieve goals, both for themselves and their companies. Ultimately, this would make the job more challenging to the employees, and simultaneously more engaging.

Posted by: Kavita  |  June 10, 2010 at 06:58 AM

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