For small businesses, every dollar counts to achieve a positive bottom line. When a hard-working employee asks for a raise but your budget doesn’t have the wiggle room right now, but you also can’t afford to lose a quality employee, how can you ensure they don’t start looking elsewhere?
Here are what I suggest as alternatives to pay increases to keep the employees you want without paying more than you can afford:
One survey revealed that 58% of millennials would choose a better work-life balance over improved compensation. Do your employees need to be physically in the office every weekday? If they have everything they need to perform their duties from home and the independence to work on weekends, consider allowing them the flexibility to do so when it may be more convenient for their social or family life. Showing your employees that you care about their life outside of work will likely motivate them to care more about their life at work.
If the employee requesting a pay increase are members of your sales team, consider offering them commission incentives. Commission payouts may sound like they will cost you money, but they encourage your team to hit difficult goals that they otherwise may not have the motivation to accomplish. With increased sales you should be able to afford the commissions that come with them. There are many different commission structures that I recommend you look into before deciding which is ideal for your team.
If an employee is putting in extra time on a project and the results are successful for your business, think about sharing some of that success with an employee with a bonus. This could be a cheque or a Visa gift certificate. Let them know why they are receiving the bonus.
Does your employee frequently use their own car for business-related travel? Reimbursing their per-kilometre allowance may be costing you more than if you provided them a company vehicle. As a Canadian business owner, many expenses related to company cars are tax deductible. Consider the difference in cost, and if the math doesn’t add up in your favour, then it may be better to consider one of the other alternatives on this list.
No matter which industry you’re in, it’s changing. Businesses that don’t grow or adapt to new technology or best practices become stagnant, and your employees want to stay relevant in the industry just as much as you do. In fact, 70% of employees wish they had more growth opportunities within their company. Offering them free learning opportunities to better themselves and develop their skills will allow them to better benefit your company. There would be costs involved, but group workshops, seminars, and conferences benefit multiple employees as well as your business, whereas individual salary increases only benefit the individual employees.
If you would like to hear about other ideas on how to keep your employees engaged and productive for the long-term, contact me today to discuss becoming a member of a TAB peer advisory board!
As a business owner, you dedicate much of your time to communicating with your clients. While this is crucial for your business, equally important is communicating with your employees. Internal communication touches every aspect of your business from announcing the onboarding of a new client, to introducing a new product to your business line. No matter the size, industry, or type of company you own, I recommend having an internal communications process embedded in everything you do.
An internal communications process allows for the exchange of information between all members of your organization, which will save you time and money. In fact, companies with effective internal communications processes experience 47% higher total returns than those that are not effective at communicating.
I’ve outlined below 3 key elements to help you establish an effective internal communications process.
- Have the Right Mechanisms in Place to Keep Employees Informed
Your internal communication mechanisms must be strategic, in order to be targeted and the most beneficial. Consider your company’s current mechanisms, from the methods of communication it uses, to the way your company engages with and seeks feedback from your staff, to the way it measures if the mechanism is successful and identifies any issues for future change.
Choosing what mechanisms to use depends on your size and budget. If your company has multiple locations, you may decide to invest in passive, large-scale communication options to disseminate information. Creating an intranet (a private network only available to a company’s staff) is one great option. If your business is smaller, consider using more conventional communication channels such as an internal newsletter, e-blast, Director’s blog, or notice board. I have even seen some companies benefit from using social networking sites as their primary means of internal communication. More directed options could include Breakfast Briefs for front-line staff, a monthly Director Communications Day, scheduled Director Q&A drop-ins, or Lunch & Learns.
No matter what mechanism(s) you choose, the bottom line is that employees have access to a platform where they can receive important company information so they stay abreast of the information they need to do their job.
- Creating a Two-Way Loop
Having great communication mechanisms in place is vital, but ensuring that they consistently generate engagement between management and employees is a key step. It is imperative that business owners and managers actively respond to feedback received and ensure a loop is created, as opposed to a top-down form of communication. By acting on the honest feedback reported by employees encourages more of the same – staff telling it “like it is”.
- Measuring the Mechanisms
To ensure that the communication mechanisms you choose are working effectively, incorporating measurement indicators, such as scheduled weekly face-to-face meetings with actionable items reported for follow-up, anonymous employee surveys offered at quarterly or annual company all-staff meetings, or through specific activity surveys through the intranet, could help identify gaps, what is or isn’t working, and what methods of communication work best for your employees.
Regardless of which avenues you choose, the main goal is to ensure employees have several effective paths available to them where they can communicate with senior management and feel heard.
Communicating with your employees is essential for the productivity of your business. Does your company have an internal communications process in place?
One of the biggest challenges I have seen many small business owners struggle with is that of delegation. Most owners started their businesses on their own being the person who does everything and so letting go or delegating can be difficult from many angles. Let’s face it, if you continue to do everything, then why do you have staff and how can you ever hope to grow your business?
Delegation means letting go of the day-to-day tasks associated with that responsibility, but by no means does it mean completely letting go of that responsibility. In other words, if you have hired a sales person to take on the responsibility of sales for your company, although you may not be making the sales calls, you do need to ensure that your sales person has the right sales processes, sales metrics and that they are in fact the right person for the role.
Without the right processes, metrics and people in place, it’s likely the onus will fall back on you to get things done. Sounds familiar? Letting go isn’t easy, but having a proper delegation structure in place will allow you to focus your energy and resources on building a successful business. Here are my recommendations for effective delegation:
1) Have the right processes
Ensure you have the right processes in place to ensure that the task or responsibility will be done correctly and in accordance with your standards. For example, if you are delegating writing you will need to ensure what type of writing, how much time the writing should take, what structure the writing must have, what approvals are required, what source materials, and how the writing must be started. The process needs to be written down, explained to the person who you are delegating it to, and followed up with by you to ensure the process is being followed.
2) Measure your success
The only way you can truly know if the process is working right is to measure its effectiveness and subsequent success. To measure the success of the objective, you may want to consider KPIs as they are an effective way of measuring key business objectives, as are analytics. There are numerous measurement tools available, so finding the one appropriate for your business is important. Whatever metric you choose should be spelled out and communicated to the person taking on the delegated task or project. They need to understand that they are being measured in their responsibilities.
3) Have the right people
In a previous blog, I discussed the importance of building a solid team. Ensuring you have the right people working for you means that you can delegate appropriate tasks with the confidence they will be completed accurately and efficiently. Trust and communication are two qualities that can make or break a business. In my many years as a business advisor, I’ve witnessed numerous business owners cycle through employees simply because they had the wrong person in the role who was not fully capable of handling the responsibilities despite having the right processes and metrics in place. Invest wisely in securing the right team. With the right team in place, you’ll experience no hesitation in delegating important tasks and responsibilities.
Delegating is what most business owners crave – you want someone or something to take the huge responsibility of doing it all yourself off your shoulders. Have no fear, by ensuring you have the right processes, metrics and people in place will mean you can lessen your load, and free up the much-needed time to do what you have always wanted to do: focus on building your business.
As a business advisor, a common question I’m often asked is if team-building activities are actually important. The answer is a resounding yes. You may not realize it, but you may be doing yourself a disservice as a business owner by not taking the time to focus on building the strength of the relationships between your team members.
It is no secret that a cohesive team of employees leads to greater success for any business. Why exactly? I’ve outlined below a few key benefits of team building that are worth considering:
- Increased Trust
- When you have a team that is constantly working together, a mutual trust between all employees will make every process much smoother. Employees are able to depend on one another and become more productive as a result of trust.
- Greater Communication
- A team that can’t communicate will never get anywhere fast. While everyone has different styles of communicating, understanding these differences will make your team more efficient and better functioning overall.
- Greater Collaboration
- An “every man for themselves” mentality is detrimental to a successful team. Creating strong bonds between your employees will help them realize the interdependency of the team and appreciate the collaborative opportunities available to them.
- Easier Conflict Resolution
- Team building is a great way for your employees to get to know one another on a more personal level. With large groups, you’re bound to have varying personalities, and team-building activities are the best way to become accustomed to each other’s dispositions.
There are a variety of team building activities to choose from that focus on these specific outcomes. While you try to make team-building fun, you want to ensure that the takeaways of the activities directly influence your employees working environment, so your team members recognize the benefits of participating.
As a business owner, it is vital to pay attention to your employees and understand what team dynamics they may be lacking, and react accordingly, after all your employees are the core of any successful business.
What is your favourite team building activity, and how did it influence your team dynamic? Share your experiences with me in the comments!