That's why I try to incorporate Henry Ford's approach to employee retention and productivity. I have implemented a variety of tactics, such as high pay, opportunities to serve on a "President's Council" with the company's top executives, and constant recognition and rewards for accomplishments, to ensure that valuable employees stick with the company. These efforts have paid off. Value has achieved "World Class" distinction from the Gallup Organization for its employee satisfaction and customer service. I have also spoken across the country on the importance of people in a company, and as a result of my experience I have put together the following six tips to help boost your business's employee retention.
- Remember that people are the foundation for success. Profits don't generate on their own — they're born from capable, diligent employees who produce a superior product or service that the public desires. If people are happy, they'll work harder for you and generate greater results. Companies often make profit their bottom lines, forgetting that without the right workforce to create and deliver goods and services, production will be inefficient, and the business will lose money. Keep the right people in place by keeping them happy…and watch your company's earnings rise.
- Create your own "metric system." If you expect your company's employees to succeed in their positions, they need to know exactly what their positions require. It's up to a business' top-level executives, as well as its human resources department, to define expectations for each and every role in the corporation. In addition to delegating tasks for each position, it is important to create a way to measure the desired performance for each role. Also, make sure to communicate this to all employees, so they understand the demands of their jobs — and have a fair description that will enable them to meet expectations.
- Stay, go, role. Decisions about whether to dismiss someone — or to retain him or her — aren't always cut and dried. Often, an employee will be motivated and hard-working, but not right for his or her current position with the company. Rather than simply releasing someone, evaluate whether or not the problem is the person or the position. For example, someone who fails as a manager in one of Value's stores may excel as a salesperson. If employees have potential and value in a company, consider moving them to a better-suited position. However, if they are unmotivated or lacking skills across the board, it may be best to let them go.
- Nudge people up the ladder. When deciding whether to stay or stray, a major consideration for many employees is job mobility. Workers are often motivated by the prospect of a new title, a new raise or a new position. Rungs on a business's corporate ladder represent options and opportunities for many people — and subsequently entice employees enough to build motivation and allegiance. Create a business model that allows for upward mobility so you can nudge people up the ladder.
- Make honesty your policy. In order to build company loyalty, workers need to trust their employers — which means employers shouldn't make promises they can't keep. Make sure to deliver on your pledges. Don't promise raises you can't give, in the hopes that employees will be momentarily satisfied and forget about it later — they won't. Once enough expectations are left unfulfilled, employees will move on to a company they can count on.
- Practice what you preach. Everyone needs a role model, so make sure your company's top-level executives are leaders. People are more apt to work hard for someone they respect and would like to emulate. Hire managers who aren't afraid to roll their sleeves up and regularly interact with all levels of employees. Each member of Value's executive team spends one day each month working in Value's retail stores, pitching in wherever needed. Don't just talk about hard work and loyalty — reflect hard work and loyalty. Leadership isn't just about running meetings and creating budgets — it means knowing employees' names, showing them you care, and pitching in wherever needed.
About the Author
John Thedford is president, CEO, and founder of Value Financial Services, Inc., which operates pawn and jewelry stores under the banner of Value Pawn & Jewelry in Florida and Georgia, and Check Jewelry and Loan in Tennessee. Value is one of the largest privately held pawn chains in the country and has been named to the Orlando Business Journal's "Golden 100" list as well as to Inc. magazine's "500 Fastest Growing Private Companies." The company has a distinguished record of being the most innovative operator of multi-unit shops in the industry and has achieved "World Class" ranking by the Gallup Organization for its excellence in employee satisfaction and customer service.
