E.O.W (End of the Week) Notable Tip: Numbers Vs People

Happy Friday!

I hope you’ve had a great week! Read below for the EOW for today, Friday, October 6, 2017.

“When it comes to safeguarding the bottom-line, hitting the numbers is the only focus. This narrow thought process causes leaders to lose sight of what truly drives those numbers and that is their employees and customers. When employees and client satisfaction is made top priority revenue/profit  follows.”

 

I hope you’ve enjoyed this tip!

As always, “Success is continuous improvement.”

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Maintaining Integrity during rapid growth

What is integrity? According to dictionary.com, integrity is “adherence to moral and ethical principles; soundness of moral character; honesty.” Why is it important in business? Integrity in business is important because it builds internal and external trust amongst all the people that have dealings with the company.

Effective leaders “walk the talk”; in other words they do what they say. It is imperative that during the early stages of a startup that codes of conduct be established that convey how business will be done and how employees, clients and suppliers will be treated. Companies that have great cultures are avid believers of collaboration. They encourage employees to share ideas and work together to solve problems.

“Two heads are better than one but 7 heads are even better”

When your company is impacted by rapid growth it is often found that you lose touch with your employees, reaching targets takes priority instead of optimizing client satisfaction, and company values may become diluted as employees may start to do anything necessary to keep their jobs. Effective leaders implement department headcount caps of 170 or less, discuss company values, mission and strategy daily, and have employee-centric cultures.

For example, an automotive air bag manufacturer, Takata, wanted to cut costs so they opted for a cheaper material which resulted in a mass recall. Evidently, they increased their losses by not maintaining integrity in their product. There are many other ways to cut cost but keep quality and this showed their lack of consideration for their customers. They were more concerned about their bottom line. It is going to take a long time for them to build trust with those customers that they lost because of their poor judgment and poor ethics.

Nevertheless, it is important that leaders ensure that their employees understand and never stray from the company’s core values by discussing this matter daily. Customer satisfaction, internal and external respect amongst employees, clients and suppliers, and collaboration are the key factors that make for an enduring company. When employees trust their coworkers and leaders they work together as a team and protect the company from harm.

E.O.W(End of the Week) Notable Tip: Alternatives to Layoffs during business financial hardships

Happy Friday!

I hope you’ve had a great week.

Today, I would like to discuss some alternatives to reducing costs during business financial hardships instead of mass layoffs. Strong and effective leaders build trust in their companies and see their employees as their second family sometimes even as an extension of their family. When employees become aware of financial troubles in the company their stress levels go higher than usual, their health may become impaired, and productivity is also affected. Laying off a plethora of people causes employees to lose trust and loyalty to a company. When employees trust their leaders they are less likely to move on to greener pastures because security, trust, and opportunity is integrated into the culture offering a peace of mind.

“When faced with financial troubles in your business try to see ways to cut costs, require/offer unpaid vacations to employees (4-8 weeks), and integrate an evergreen employment policy that stipulates employees will not lose their jobs if the company is facing financial troubles (hire the right people through rigorous hiring practices to ensure they are worth keeping). “

Through an expenses analysis you can identify expenses that your company can live without and requiring employees to take 4-8 weeks of unpaid vacations during hard times can also free up cash as well. However, the unpaid vacation should not be forced and only those employees that can afford to take time off should take advantage of this. You can also offer employees the opportunity to work from home as this will reduce your electricity bill.

I hope you’ve enjoyed this E.O.W!

As always, “Success is continuous improvement.”

 

 

E.O.W(End of the Week) Notable Tip: Emphasize Intrinsic Rewards

Happy Friday!

I hope you’ve had a great week.

Today I want to leave you with a short tip about enriching the jobs of your employees. What do employees want? You find the answer to this question by asking them! However, most employees seek intrinsic rewards.

“Employees want interesting, challenging work,  and the opportunity to achieve and grow into greater responsibility.”

 

Until next time, remember, “Success is continuous improvement.”

 

 

Lean Wednesday Tip: Client Relations

“Never let a client treat your employees badly and if such incident does occur fire the client immediately. It is of most importance that the clients you work with have cultures that naturally sync with yours. A sale is never worth the mistreatment of your employees.”

Notable Friday Chat: Care about your employees!

Happy Friday!

I hope you’ve had a productive and enriching week. Today I want to leave you with a short message that will have a significant impact on your talent management goals and overall company wide health. I hope you have a great weekend and remember, “Success is continuous improvement!”

 

“Taking the time to talk to and ask atleast one employee each day how they are doing and somehow guide them in solving a professional or personal problem will in turn, help you build a stronger relationship with your employees but also support your talent management goals.

 

The Most Important HR Metrics that you should be tracking

To really understand the health and performance of your human resources function, I have created a list of the most important HR metrics that will provide a clear picture of how the department is performing.

  1. Cost of Hire
  2. Ratio Compensation/Benefits to Revenue/Profit (compare each year to industry averages)
  3. Employee turnover rate of new hires within their first 24 months
  4. Percentage of new hires that rate training and educational opportunities among the top 3 reasons they accepted and still love their job – compared with the % who rate training and educational opportunities as excellent 12 months into the job
  5. Quarterly turnover % of high performing employees
  6. Turnover % of low performing employees within one year of receiving low rating
  7. Percentage of employees with superior performance ratings against salary levels
  8. Monthly turnover rate
  9. Revenue per employee: total revenue/total number of employees
  10. Percentage of women promotions to top level positions
  11. Promotions Rate: Promotions/Headcount
  12. Number of raises
  13. *Compensation Analysis to ensure competitive market salary is offered

On-boarding Employees: Where are the supplies?

 Onboarding a new hire is stressful enough. Paperwork needs to be done, work area needs to be set up, et cetera. But no one remembers about supplies. Utilizing Lean Six Sigma methods and tools like 5S, visual management and Kanban to remove office waste is a great way to have a supplies inventory system that ensures all employees know where each item is kept and are aware of what is considered to be low inventory. This will ensure an order is placed in a timely manner to avoid any impairment in daily business operations or having to run out to your local supplies store and grossly over-pay.

When all supplies are cataloged, organized, labeled, tracked in Excel and this information is readily available to employees; waste is reduced in terms of time looking for supplies, productivity time wasted and money wasted. Ensuring employees know where all supply items are kept will significantly reduce time and productivity wastes. They should also be aware of what is considered to be low inventory (Zero is not acceptable) because this will allow immediate and timely replenishment.

For example, you would start by creating an inventory tracking Excel sheet like the one below (you can personalize it as you wish). You can set it up in Google Sheets and share with your team. You can encourage employees to make notes on whether items should be made more accessible to them (move printer closer to marketing team, et cetera) or add additional items to the list that will help them enhance their productivity.

In short, those that prepare and organize their office supplies inventory systems effectively reduce the most critical waste which is time and then of course, money.

How to Create a Benefits Strategy to optimize talent management

3D Successful business group

 

Employees don’t want to be handed books of paper about the benefits available to them through your company. They need guidance on which medical, dental, and retirement plan to choose. Therefore, to increase overall employee satisfaction and improve your benefits administration process I suggest the following:

1. Utilize the Voice of Your Employee by conducting surveys, such as, how often they want benefits related information to be provided to them, what communication channels do they prefer to receive the information (videos, PPT, mobile, intranet, email, et cetera).

2. Create personalized material to fit critical variables based on survey data and employee goals.

3. When you identify how often employees are willing to see benefits information make sure to create a calendar of when this information will be distributed and actively survey employees on what topics they want to learn more about (make sure the content is not too long, gets to the point, and is easy to understand but also fun too)

4. Utilize or create a single platform that offers all benefits information because this reduces the need for multiple passwords/websites.

5. Set time every quarter to discuss benefits and explain to employees why premiums increase every year. Also have your broker be part of the meeting so they can offer advice to employees on which plan is best for them or answer any questions they may have.

6. Comparison shop every year to see if you are able to find a more cost-effective plan by using the total-cost method (e.g taking into consideration the overall cost of the plan includes broker fees/commission, admin fees, et cetera) See this entrepreneur article for more information.

7. Continue to survey employees every Quarter because many things can change in their lives in just 3 months. You have to stay abreast to those changes so that relative guidance, content and information can be readily available to them so they can make smart decisions.

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