Have you made a recent quick hire that isn’t quite fitting the bill? Or perhaps you’ve realized that an employee’s quality of work isn’t what it used to be? For smaller businesses especially, an underperforming employee can have a large impact on the organization as a whole. But what should you do if you encounter such a scenario in your business?
Letting employees go isn’t always the easiest decision to make, but sometimes it’s necessary, especially if all other options, such as coaching and job accommodations, have been exhausted. Before making your final decision, you may want to consider how the termination of an employee could affect your overall business. Consider these factors:
- Customers are perceptive. If you have employees with low morale, customers may sense that something is off.
- Employees startle easily. Discharging one employee could cause others to worry that they’re the next to go. This can result in a decrease in office morale.
In order to keep your customers happy and avoid employee turnover, I have put together a list of suggestions to hopefully minimize low morale within your business after letting an employee go:
Plan for the Increased Workload
Before terminating the employee, if you don’t already have a replacement lined up, I suggest having a plan in place for the increased workload. One in four Canadians have left an employer due to work-related stress. Note which team members would be best suited to take on which additional tasks, and try your best not to overload any one employee. You may even want to consider taking on some of the tasks yourself, to show your solidarity with the team.
Communicate, Communicate, Communicate
After the employee has been let go, communication is key. Carefully prepare how to explain the termination to your team without possibly opening yourself up to legal repercussions. It’s also important to assure your employees that they are appreciated and that their jobs are secure.
Remember, communication is a two-way street. Not only should you keep them in the loop, but also you should give them the opportunity to provide their input and ask questions. Employees are 4.6 times more likely feel motivated at work if they feel their opinions are heard and valued.
Get Out of the Office
I’ve found that the quickest boost to office morale is getting your employees out of the office. Organize outdoor team-building activities or a team lunch. Maybe put your teamwork to the test in an escape room. Such outings can remind your employees that you care that they are members of your successful, ambitious team.
Deciding when it’s best to dismiss an employee is not an easy task. If you need help preparing your business for change, contact me today!
At a few TAB meetings I’ve recently facilitated, the business owners around the table have asked how they can ensure their customers keep coming back. When the cost of acquiring a new customer is five times more than the cost of customer retention, we need to show our customers that we care.
Many of you may be familiar with loyalty programs in your personal life such as from your gym or a preferred airline, but loyalty programs are also relevant for those who sell B2B products and services. So, what constitutes a loyalty program?
Loyalty programs can encourage your customers to continue purchasing your products or services by providing them rewards for their continued business. Such rewards may include discounts or free products by spending earned points, advance notice of a new product, or participation in loyalty members-only sales.
I’d like to share with you four possible benefits of implementing a loyalty program:
Not all money-saving offers, such as frequent sales and deeper discounts, are likely to be ideal for your business, but some loyalty programs allow customers to earn their own personal sale so you don’t need to cut prices across the board. A good example of this is programs that give money back after spending a certain amount (Spend $X, Get $X Back). You could create service packages like this as well. The customers get the satisfaction of feeling like they are saving money, but in reality they tend to spend even more money at the time of reward redemption.
Loyalty programs can increase your sales without needing to lower your overall prices, giving your bottom line a valuable boost.
Promotion of New or Less-Popular Products
As a business owner, you might find that your business has difficulty selling certain products/services or getting customers to try something new. A well-designed loyalty program can offer greater rewards – and greater incentives – for specific purchases, which can compel customers to add or explore products or services that they would normally ignore.
Collection of Unique Customer Data
In order to sign up for your loyalty program, you’ll need your customers to provide you with some basic information. This is an opportunity to ask for more targeted information than what you may already have on your customer, which in turn allows you to customize future offers to them. You may ask them about their preference for certain services, packages, or types of offers they’d like to see. Keep the questions brief, and offer dropdowns with possible answers for a simple user experience.
Knowledge of Your Customers’ Spending Habits
Once a customer is registered for a loyalty program, you can track their activity with your business through an identification number or membership card. The more they use the program, the more data you collect on how often they make purchases, when they tend to shop at your business, and what products/services they buy and in what combinations. You can never know too much about your customers’ spending habits.
If you do decide a loyalty program is a right fit for your business it can become an integral component of your customer retention program, but it can also be a deciding factor for a potential customer to choose you over one of your competitors.
Building customer loyalty is just one of many solutions to help business owners grow their business. Contact me today to discuss the benefits of working with TAB and growing your business!
As a business owner, you know how important it is to keep things fresh and innovative in your workplace, but when making changes, you’ll need to consider how your plans might impact your employees.
If you are in the process of job redesign where employees are assigned new roles that play into their strengths and contribute to a more successful business, these changes can be stressful to your employees. If someone has been hired for a particular job and then he or she is suddenly expected to perform a different role in the organization, tension and stress can result.
A recent report found that 46% of 1,018 Canadian employees recently surveyed had taken time off work or noticed other employees taking sick leave following workplace changes, a common symptom of a stressed-out workplace.
I’ve outlined below a few tips on how you can shift roles in your organization without contributing to employee stress:
- Share your vision.
Why are you doing this? What is this change going to accomplish for your organization? Sharing this vision with employees will allow them to understand exactly why this is happening, and help them find their part in it.
- Keep the lines of communication open in regards to role change.
Ask employees how they feel they can contribute to a new role and encourage conversation. By doing this, you can evaluate each employee’s strengths and weaknesses, while giving them an opportunity to work in a new role they would truly enjoy.
Make sure employees stay up to date as things begin to shift. For example, when you have made some final role decisions, send out an email to all staff informing them of the new structure. Keeping everyone in the know will ensure a smooth transition process.
- When your employees begin their new role, make sure they feel supported.
Assuming a new role can be challenging, especially if the employee doesn’t have a lot of previous experience in the position. Positive reinforcement can go a long way, as employees are less likely to experience stress when they report a positive and supportive workplace culture.
In today’s workplace, you need to keep things fresh, but maintain a balance against a backdrop of inclusiveness and communication. Learning how to handle change effectively is what will keep your team on the right path to growing your business.
How have you successfully restructured your business?
Customer retention relies heavily on customer experience, which is why it’s so important for business owners to really hone in on what will make their customers have a positive experience when interacting with their business.
Regardless of the size of your business, you can all take steps to ensure our number one asset – our customers – are happy. Here are a few key tips to help you improve that experience for your customers:
One of the most important ways to keep your customers is to keep in touch with them on a regular basis, whether that is through daily/weekly/bi-weekly calls, meetings, or emails, you need to make an effort to touch base with your clients. These are not sales calls, but rather opportunities to hear more about recent triumphs or challenges they are having in their business. The more you know about their business, the better able you are to serve them. When you listen, a customer feels heard.
Good As Your Word
A common complaint of customers is that business staff do not follow through on promises they make. When you tell a customer that you will email them a document by noon, for example, and they have not heard from you by the next day, they might feel that they are not a priority. Every customer wants to feel as if they are the only ones you take care of, so when you say that you will meet a deadline or deliver a report and not do so, nor call to explain why, they are left in the dark and this is when they are telling others about the poor service they are receiving from your business.
Thanking Them Differently
When a customer has purchased your product or service, particularly an expensive one, be sure to thank them in appreciation, ultimately for their choosing to work with you and not your competition. A phone call or handwritten card with the express purpose of saying thanks will be appreciated, but think of taking it to another level through a congratulatory lunch or a basket of sweets delivered to their home or business. You will be remembered, talked about favourably to your customer’s contacts, and will likely receive repeat business.
Access and Availability
If the main contact number to your company goes straight to voicemail or is automated, this could result in an unfavourable experience for your customer. You want to always make sure they feel that their business is important. You might want to consider:
- Forwarding the main line to one of your customer service reps or an executive assistant
- Make sure your automated system provides a directory with your employees’ names and extensions
- Create a company-wide policy on returning voicemails in a timely manner e.g. calls are to be returned within 24 hours
With so much business happening online today, it is important to set out clear expectations for your customers in terms of how to reach you and when. You might want to consider:
- Making sure your website clearly states your hours of operation
- Adding a simple contact form on your site with a specified time that a company rep will respond, or adding an online chat for immediate answers to any customer questions
- Adding a cell number to your email signature for any immediate calls
- Creating an email policy for your staff to ensure emails are returned to customers in a timely manner e.g. within 30 minutes
The key to customer retention is to strengthen your relationships at every contact point and to be mindful of not alienating them along the way.