Low employee engagement? These measures will turn it around.

When talking with small to medium enterprises (SME) and family business owners, and I ask them about their major concerns, many will express frustrations around the performance or commitment of their employees - sentences like “they just don’t seem to take the care that I expect” or “they don’t seem to make the connection between keeping my customers happy and keeping their job” or “they just don’t seem to understand our business”.

These are valid frustrations, but does the fault lie with the employee or the strategies and culture of the business that is their employer?

Maybe it’s a combination of both?

Whilst i work primarily with Mortgage and Finance Broking business founders and owners, these factors are common to most SME's and worth looking closely at.

So let’s start by looking at the likely costs associated with replacing an employee if they leave within twelve months of commencing employment. Based on employment information readily available, the costs associated with replacing an employee earning $60,000 per annum can be approximated as follows.

This is a huge cost for any business to sustain. It’s therefore worth the time and effort to ensure that the following measures are put in place to minimise the likelihood of valuable employees not being engaged and leaving.

? Do we have a strategic plan that is clearly communicated to our team members?

? Do we have a succession plan in place that involves the retention of our key people?

? Have we considered things like employee share ownership plans for our business?

? Do we have a productive and vibrant culture?

? Do our employees know what is expected of them?

? Do they receive constructive feedback on performance?

? Do we have a proper system of employee performance reviews?

? Do we have a comprehensive process for employee selection?

Conclusion:

For most SME’s and family businesses, employees represent one of their biggest costs and their greatest resources. The success and failure of a business can very often hinge directly around employee performance and retention. It therefore by implication, also impacts significantly on business value and the stress levels of the business owner.

If you need help in this area, it is worth engaging some good professional help to get it right. An expert business adviser can put your business in good stead to retain and engage your employees more effectively, saving you money and time in the long run.

This is my area of expertise and passion, if you'd like some help improving and maximizing your employee engagement, you can schedule a chat here ? Discovery Call

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ABOUT THE AUTHOR

Ash Playsted - Partner and Value Advisor | Succession Plus

Ash is both a dedicated STRATEGIST and MINDSET tactician who relentlessly pursues his 'higher calling'. Ash been has been building businesses personally plus continuously learning for more than 40 years, all of it deep inside the Mortgage and Finance industry. He's written thousands of loans, hired and mentored hundreds of brokers and business owners, started, built, and successfully exited, multiple award winning Mortgage businesses himself. When he's not immersed helping clients create massive value you can find Ash with his loving family, including his wife Kaz, two children, two dogs, two cats and three parrots! Ash believes in keeping physically and mentally fit and is constantly developing himself through exercise of body, mind and spirit.