Building a loyal workforce
How to ensure that your workers won’t leave you high and dry.
Steve Berry, Flagstaff, Ariz.
I own a company that focuses on the construction of high-end custom homes. Because it is expensive to live here, it is difficult to hire and retain skilled employees. Skilled workers who choose to live here have no loyalty to any company and demand wages that are out of line with the industry standards. Companies offer excellent benefits, health insurance, incentive plans, etc., but nothing seems to work. How do I stay competitive with other companies and build a loyal workforce without driving my costs through the roof?
By Myrlande Davermann, Fortune Small Business contributor
Dear Steve: Your problem is not uncommon these days, says Barry Nathan, vice president of workforce initiatives at Catalyst Connection, a management consultancy based in Pittsburgh.
“This is a demographic problem,” says Nathan. “We’re seeing worker shortages in a few industries, not just one.”
Start by asking yourself a few simple questions. Is the pay you’re offering truly within industry standards? Do your employees feel appreciated? All these factors play into an employee’s decision to stick with or leave a job.
“If your pay is not reasonable and your employees are not treated well, they can walk,” says Nathan.
Assuming that you are paying competitive wages, try offering other incentives that will motivate skilled workers to stick around. Maybe you can provide them with tools and uniforms (and cover their cleaning bills).
With gas prices skyrocketing, you might also consider reimbursing a portion of their fuel costs.
Most employers don’t find out why their employees are leaving, says Paul Dorf, managing director of Compensation Resources, an HR consultancy in Upper Saddle River, N.J. So be sure to conduct an exit interview whenever any employee decides to leave.
“Some exit interviews provide limited information,” says Dorf. “But limited information is better than nothing at all.”
It’s also helpful to have an open and honest conversation with employees about what their benefits are truly worth and how much benefits cost the company on a monthly basis. Dorf suggests providing monthly statements to employees so they can actually see the proof.
Along the same lines, try getting your employees to see that they have a personal stake in the company’s success. “Ask your employees: What can we do to make more money so I can share that money with you?” says Dorf.
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From Daniel, Raleigh NC Steve,
The easiest program to start in your situation is profit sharing. If done properly, profit sharing gives the workforce not only a reason to be loyal but it also get them to think of ways of being more efficent. It can build a sense of ownership.
Perhaps you might want to even set aside one day a month to go around rewarding your employees. Stop by workstations and chat with them for a bit to show them you care.A chat with the boss can be big! Remember to reward your employees, it don't have to be something big a gift card, lunch, or a tank of gas would be a help.
Daniel,
Thanks for the answer. I have tried most all of these suggestions, except a full blown profit sharing plan. This is something I've thought about alot and how to do it. Well, more thought.