Reducing Employee Turnover

An entrepreneurial company must hire good employees to grow the business.

But, hiring good employees is not enough – lowering your turnover rate for such employees is even more important. What are you doing to decrease your turnover rate for good employees?

Hiring good employees is merely the first step. Giving them an effective orientation and training them continually to improve their skills and abilities is also required.

Reducing the employee turnover rate requires creating an environment where your employees can align themselves with the culture and feel comfortable and stimulated to contribute.

Motivating them with financial rewards commensurate with performance is necessary, but you also need to provide a challenging platform for them to contribute significantly and feel a sense of satisfaction.

Find creative ways to retain your good employees – it is not only an asset for your organization but also will also reduce employee turnover costs.

Ravi Patel

http://www.patelCFOservices.com

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Published in: on October 3, 2017 at 4:26 am  Leave a Comment  
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Seeing What People Could Be

“A good coach will make his players see what they can be rather than what they are.” – Ara Parasheghian.

Like good coaches, Entrepreneurs have to find the potential in their people. When hiring, don’t merely evaluate the current skills and experience of the applicant. Rather, determine what the person can become with proper coaching and training.

Given the right coaching, raw talent can be molded to perform at exceptional levels in any organization. The problem for Entrepreneurs is that they mostly focus on short-term needs and do not have a long-term vision for human resource acquisition and management.

When a sculptor views a stone, he/she is evaluating whether it could be transformed into a thing of beauty. Similarly a land developer sees beyond the empty expanse of land and has a vision of what a housing community or golf course it could become.

Entrepreneurial leaders have a great vision of what their idea or product could become. They need to use a similar vision towards their people and see their potential rather than what they are right now.

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Published in: on July 18, 2017 at 4:35 am  Leave a Comment  
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Resisting Temptation to Blame Others

Don’t find fault, find a remedy – Henry Ford . Entrepreneurs could learn a lot from this statement.

In a blame-rich rather than solution-oriented culture, leaders (mostly political) often seek out whom to accuse of problems rather than finding solutions. This sometimes extends to poorly run companies with unhealthy culture and negative management practices.

In reality, it should be acceptable for leaders to hold people accountable for their performance. However, it is not wise to continually blame others for problems. Entrepreneurs have to take responsibility for the issues facing their business and teach their managers to do the same.

More importantly, blaming others or even accepting responsibility does not solve the problem. Entrepreneurs need to create a culture where finding solutions or remedies to issues takes precedence over blame. Such a positive culture allows people to readily accept responsibility for decisions without having to face ridicule.

Do the Right Thing by creating a solution-oriented culture in your company and incorporating that in your Mission.

Ravi Patel

www.patelCFOservices.com

Employee Involvement

Is recruiting and hiring good employees enough for Entrepreneurs?

After new employees start work, on-boarding, orientation and making them aware of the company’s Vision, Mission and culture should be a standard part of any hiring process. How many Entrepreneurs do that?

Even if you have a robust on-boarding process, what do you do to keep your employees actively involved in your company?

Entrepreneurs don’t treat working in their company as a “job.” They need to develop that sense of spirit in their employees. Employees should feel closely attached to the Mission of the company such that they view their job in a macro sense – as having a direct impact on fulfilling the Mission rather than just completing assigned tasks.

Offering material rewards for accomplishments works for a while. What is more important is the emotional engagement of employees in the company such that they personally identify themselves with the company’s success (and failures). Finding ways to involve employees in a meaningful way should be a key objective for Entrepreneurs.

Engaged employees are generally happy and productive. Get them involved in your company.

Ravi Patel

www.patelCFOservices.com

 

Coaching Employees

“A good coach will make his players see what they can be rather than what they are.” – Ara Parasheghian

Like good coaches, Entrepreneurs have to find the potential in their employees. When hiring, don’t merely evaluate the current skills and experience of the applicant. Rather, determine what the person could become with proper mentoring and training.

Given right coaching, raw talent could be molded to perform at a high level in any organization. The problem for Entrepreneurs is that they mostly focus on short-term needs and do not have a long-term vision for human resource acquisition and management.

When a sculptor views a stone, he/she is evaluating whether it could be transformed into a thing of beauty. Similarly a land developer sees beyond the empty expanse of land and has a vision of what a housing community or golf course it could become.

Entrepreneurial leaders have a great vision of what their idea or product could become. They need to use a similar vision towards their employees and see their potential rather than settle for what they are right now.

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Positive Influence

Venturing into a new business idea could be a lonely proposition for Entrepreneurs. Most people don’t understand their Vision and stand and watch from the sidelines, if not being critical.

There will still be a lot naysayers even as the company grows. It is critical for Entrepreneurs to surround themselves with positive people. Positive people add good vibes and positive energy to any venture. They are generally team-players and also have the motivation to overcome challenges and look at problems as opportunities.

Negative people always find fault in whatever is being asked of them or is being done around them. They always look at ways in which things or ideas will not work instead of finding solutions. They generally sap energy from an organization. These category of constantly negative people are often intelligent, but can be lazy thus finding excuses not to do things.

Entrepreneurs should be careful to distinguish between positive people and  those who are a;ways saying “yes” to them. One can be positive but still question something if it is not right. Entrepreneurs would be best served by people who are positive but are not afraid to say “no.”

Ravi Patel

www.patelCFOservices.com

Published in: on December 20, 2016 at 4:39 am  Leave a Comment  
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Attitude Adjustment

Do employee attitudes affect performance? Most likely.

Who performs better? Employees with positive attitudes about themselves, towards the company and their fellow employees have the capacity to perform at a higher level.

So what could Entrepreneurs do to improve the attitudes of their employees?

First, have an understanding on how your employees feel about the company and their fellow employees. Using your HR department to conduct formal and informal surveys could help this effort. If economical, have an objective, outside party conduct such surveys.

Supervisors should be sensitive to the problems faced by employees outside their work and how they might be affecting their performance. If the performance of an employees does not meet expectations, determine whether it is related to the abilities or skills of the employee or whether it is related to his/her attitude.

Then, Entrepreneurs based on collected data should develop programs that improve employee attitudes thereby enhancing performance. It is by no means a one-time effort, but should be reassessed and revised  periodically.

Ravi Patel

www.patelCFOservices.com

Being Productive

Entrepreneurs often are fixated on the notion that working long hours translates to success. Most often this is not true.

Is working long hours always a good thing?

How productive you are is the determinant of success, not necessarily working long hours. Of course, one needs to put in the effort to succeed. However, make sure that the focus is on “Doing the Right Things,” not doing too many things poorly.

The working longer syndrome sometimes is also transferred to the Entrepreneur’s employees. Entrepreneurs sometimes have a tendency to judge employees on how long they work. The focus should be on what employees accomplish and how productive they are.

Stress time management and productive effort to enhance performance! Working hard is good only if it is productive.

Ravi Patel

www.patelCFOservices.com

It is About Attitude

Does your employee’s attitude have anything to do with performance? Of course, it does!

Employees with positive attitudes about themselves, towards the company and their fellow employees have the capability to perform at a higher level.

So what do Entrepreneurs need to do to improve the attitudes of their employees?

It is important to have an understanding on how your employees feel about the company and their fellow employees. Using your HR department to conduct formal and informal surveys could help this effort. If affordable, it might be a good idea to have an objective, outside party conduct such surveys.

Supervisors should be sensitive to the problems faced by employees outside their work and how they might be affecting their performance. If the performance of an employees does not meet expectations, determine whether it is related to the abilities or skills of the employee or whether it is related to his/her attitude.

Entrepreneurs based on collected data should develop programs that improve employee attitudes thereby enhancing performance. It is by no means a one-time effort, but should be reassessed and revised  periodically.

Ravi Patel

www.patelCFOservices.com

 

Identifying Top Performers

There are several ways to classify employee performance  in your company. Most traditional ways focus on actual performance against expectations or against established goals.

Here is a different perspective. Entrepreneurs should categorize employees into three categories – those who add direct value to your business, those that are neutral or add indirect value, and those that reduce company value.

Clearly, you should pay special attention to the first category by training and motivating them so that they continue to add value. Have a strong retention program for these individuals so that they don’t leave your organizations.

Deal immediately with people who reduce the value of your company. These are the bad apples that need to be removed from the company as soon as possible.

The people who are neutral as far as their contribution to company value need to be either moved to the category of employees that add value by training, or red-circled if they are providing a support function to the first category of employees. If there is a chance that they would reduce the value to your company, they need to be transitioned out.

Identifying the three categories of employees and dealing with them appropriately will go a long way in building the value of your company.

Ravi Patel

www.patelCFOservices.com