Business Killer 3: Staffing and Labor - Continued
Posted by Ryan Volberg at September 11, 2007 2:00 PM

Get an edge with a strong staffing strategy - Retention

Last week we discussed recruiting and hiring best practises. You now know how to get employees but how do you keep them?

Retention

1. Consistency. Playing favorites is a sure way to create dischord among your staff. Create processes for things like booking days off, changing the schedule and assigning routine tasks. This is a balancing act however, since as a small business you can use your flexibility to your advantage. The "Policy" may not always be appropriate to enforce.

2. Reward Loyalty. Employees that stick with you through stressful times develop a bond with you. Reward that bond by making them feel special. This can be a physical reward such as a gift, or it can be something intangible, such as participating in a training session or trade show for your industry.

3. Build rewards into the work. Employees feel a huge amount of pride when they feel that your business delivers quality. Empower your employees to satisfy your customers. Involve them in the decision. When an employee tells you about a difficult situation with a customer, ask them "What would it take for this customer to be delighted?" Let the employee come up with a solution. If it's acceptable, then have them implement it. The idea might need some work, so help the employee work through the solution.

4. One Bad Apple... Don't let a single bad employee ruin your business. Deal with problem employees quickly, even if it means short term pain. Going through a busy season shorthanded is better than having one employee infect all of your employees and customers.

5. Keep records. Use records to both protect you in the case of a problem employee and to record when an employee goes above and beyond. When the time comes for reviewing wages, having records will make both cases appear much more fair. The problem employee will understand which behaviors have resulted in a less than favorable review and the exemplary employee will be flattered that you took the time to record their accomplishments.

6. Give feedback regularly. Letting your employees know that they're appreciated is one of the cornerstones of a strong staffing strategy. Failure to give feedback can cause feelings of resentment and general malcontent to fester.

7. Success by association. Wages and recognition are important, but there are some ways to improve your employees financial situation with very little investment. Many retail and restaurant associations have cost-savers that are applicable to your staff as well. Cell phone and long distance savings are popular offers that your employees can take advantage of.

Next week, we'll explore how non-traditional competitors are eroding your business and what you can do about it.

Ryan Volberg is the CEO of Vivonet, a company dedicated to ensuring retail and restaurant success.

Category: Survival Tips

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