Posts Tagged ‘Employee Retention’

How Flexible Is Your Company’s Management Style?

Monday, April 25th, 2016
Multi-Generational Workforce | Management Style | Ohio CPA Firm

Are you able to successfully manage a multi-generational workforce? Read on to find out why you may need to adjust your management style to achieve optimal productivity and general sustainability of your business.

Never before has the American business owner had to manage a workforce consisting of employees whose ages span five generations. And because each generation is unique, your company’s leadership team is left with the impossible task of adopting a management style to accommodate an incredibly diverse workforce.

Listen To: Mastering The Un-Manageable Magic Of Millennials

Today, an effective management team is required to be fluent in a traditional management style to accommodate the Baby Boomers while adopting an effective hands-off approach to appease the up-and-coming Millennials and a variety of other techniques to motivate and inspire the workers who fall somewhere in the generational middle ground. AND all of this has to be done effortlessly. …

You’re probably wondering if all this extra work to understand the generational differences of today’s workforce even really matters. If so, worry no longer – it does matter, a lot. Here’s why:

Marketplace Competition

The marketplace is changing and in order for your business to stay competitive, you have to be fast and agile. Who knows how to do this better than the Millennials? When I was growing up, if I wanted to make a purchase, I had to drive to the store and browse the aisles before making a purchase. Today, all the consumer has to do is pull out the smartphone, browse the products, read reviews and buy the product – and this whole transaction happens very, very quickly.

Employee Retention

A lot of businesses are having a real problem when it comes to employee retention. Companies that are not willing to adjust to their employee’s needs are going to have a difficult time retaining them for a significant period of time. Rather than try to fit a square peg into a round hole, your business might have more luck keeping that star employee around if you were to adopt a different management style. Otherwise, be prepared for the company rock star to look for employment elsewhere.

Improved Productivity

Millennials have already changed the way business is conducted in America, and we’re only getting started. One of the most extreme changes we have seen centers around the productivity of the younger generation. A lot of times we will hear that they are unwilling to get to work at 8 a.m. or that, when they do get to work, they are rarely focused on just one task. To the older generations, this can be frustrating because it flies in the face of the traditional workstyle. However, when the business can harness the unique skills and dedication of the younger generations, business owners are bound to see the productivity of these employees significantly improve.

Pat Porter talks a lot about how businesses can make since of an increasingly diverse workforce on episode 29 of unsuitable on Rea Radio. You can listen to the episode, Mastering the Un-Manageable Magic of Millennials” by clicking play on the media player below, or you can visit the episode’s webpage to listen and tap into some other great resources to help you along. And, of course, you can always email Rea & Associates for even more, specific tips and insight.

By Renee West, SHRM-CD, PHR (New Philadelphia office)

Are you looking for some more HR insight to help your business? Check out these articles for some helpful advice:

No People, No Growth

Fully Staffed & Operational: How To Master Your Employee Recruitment Strategy

Can You Afford To Lose Them?

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Can You Afford To Lose Them?

Friday, March 4th, 2016

Know The Costs Associated With Replacing Team Members

Costs Associated With Replacing Team Members | Rea & Associates | Ohio CPA Firm

Did you know that it takes about 12 months before your new hire will reach their maximum potential? That’s a lot of time and, as you know, time is money. Read on to discover some other costs associated with losing a member of your team.

When you lose a member of your team, regardless of their position, you can expect their departure to impact your organization’s bottom line. That’s why it’s so important to take a proactive stance with regard to staffing and minimizing your financial burden.

Start by becoming knowledgeable about the costs associated with losing, and ultimately replacing staff. Then, develop a plan to address staffing concerns in a way that promotes a strong retention strategy and positive recruiting tactics.

Read also: Fully Staffed & Operational: How To Master Your Employee Recruitment Strategy

Read on to discover some of the more prominent monetary and emotional costs associated with losing a member of your team.

Monetary Costs

  • Productivity

o   The obvious productivity cost accrues from work missed due to the position being left vacant. A secondary productivity cost results when others have to take time out of their days to conduct interviews, onboard new hires and oversee the training process.

  • Cash Flow

o   Negative impact on the organization’s cash flow could occur, for example when you are required to pay benefits in a lump sum rather than over a period of months as originally projected.

  • Sourcing

o   While referrals often result in higher quality hires, if you have implemented a referral program, there’s likely a cost associated with it. When looking for external sourcing assistance, prices vary depending on the company and the services provided.

  • Market value

o   Market costs relate to the “negotiation” period spent making offers to the desired candidate that are comparable to offers they may be receiving elsewhere.

  • Onboarding

o   It takes about 12 months before your new team member will reach their maximum potential. Over the course of that time, a lot of time and resources will be spent getting that person up to speed.

  • Bad hire

o   Of course, if it doesn’t work out you may need to try again. And that means ongoing costs. Therefore, while it may be tempting to rush through the recruiting process, making a good hire will cost a lot less than having to relive the bad hire experience any day.

Emotional Costs

While the emotional costs associated with the loss of a team member are hard to quantify, they should not be ignored as they greatly impact others throughout your organization. You may never fully realize the scope of one’s relationships with their co-workers until they are gone, so you will never really be able to predict the impact their departure will have throughout the organization. Here are some emotional costs to consider:

  • When a member of your team leaves, especially if they spent a lot of time with your clients, their departure may impact your organization’s external relationships.
  • The urge to say goodbye may be stronger than the urge to maintain productivity. This behavior could have a ripple effect throughout the entire organization.
  • When one person leaves, depending on their personality, the entire team dynamic may change. Getting back to normal could take some time.

Are you looking for advice to help you grow your business and improve your company culture? Check out unsuitable on Rea Radio, a unique financial services and business advisory podcast that challenges old-school business practices and the traditional business suit culture.

By Mark Van Benschoten, CPA, CGMA(Dublin office) & Renee West, CHRM-CD, PHR (New Philadelphia office)

Are you looking for more ways to master your employee recruitment and retention strategy? Check out these articles.

No People, No Growth

Can Your Business Survive An Employee Exodus?

Are Your Employees Stakeholders In Your Business?

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Fully Staffed & Operational

Thursday, February 25th, 2016
Recruitment & Staffing Strategy - Ohio CPA Firm

It’s very rare to be able to fill a vacant position after interviewing a single prospect, which is why you should identify the average number you typically have to interview before you find The One. Then, work to keep your prospect sourcing funnel full. Read on to find out how.

How To Master Your Employee Recruitment Strategy

Don’t make the mistake of thinking about your employee recruitment and retention efforts as a line item on your to-do list. You should always be thinking about ways to keep your company fully staffed and operational. While there is no way to predict how many employees you will need to hire over the next year, or even the next five years, you can create a solid recruitment plan by paying close attention to your company’s historical data. Here’s how.

Know your company’s average turnover rate.

For example, say you are responsible for keeping your company of 300 employees fully staffed. Now, for the sake of simplicity, imagine that your average annual turnover rate over the last few years has held steady at 10 percent. If this year is consistent with historic trends, you should be actively looking to hire 30 people.

Read Also: No People, No Growth

Of course you are going to need these 30 potential employees to have a range of different skills and levels of experience. To develop your strategy, simply take an even closer look at the data to determine, on average, how many managerial vacancies you should expect to fill versus hourly employees. Once you have narrowed down your search criteria, you can start sourcing candidates and filling your recruitment funnel.

Plan for business growth.

When we talk about recruitment, we need to take a closer look at the talent pool that currently exists within your company; meaning you should always be aware of your existing employee’s knowledge, skills, abilities and experiences and make it a point to invest in their ongoing success. This strategy is particularly important in times of growth. Consider, for example, prospects with specialized skills, advanced degrees and adequate experience can be a lot harder to find than an entry level prospect. Therefore, if a management position opens up in your company, an existing employee can readily fill the vacancy while ensuring that the transition is as seamless as possible.

Think about recruiting every day.

It’s very rare to be able to fill a vacant position after interviewing a single prospect, which is why you should identify the average number you typically have to interview before you find The One. Then, work to keep your prospect sourcing funnel full by:

  • Maintaining positive relationships with prospects and employee referral sources.
  • Conducting ongoing interviews and continuing to accept resumes from qualified prospects.
  • Targeting prospects where they hang out. This could be done by strategically targeting your marketing to ensure you are reaching the most qualified prospects at the source. If you are looking for entry level prospects, pay more attention to social media, college job fairs and open houses. If you are looking for professionals to fill managerial positions, consider focusing on employee referrals, LinkedIn and targeted digital and traditional ad campaigns.

Are you looking for more advice to help you grow your business and improve your company culture? Check out unsuitable on Rea Radio, a unique financial services and business advisory podcast that challenges old-school business practices and the traditional business suit culture.

By Renee West, SHRM-CD, PHR (New Philadelphia office)

For more tips to help you establish your employee retention strategy, check out these articles:

Are Your Employees Stakeholders In Your Business?

No People, No Growth

Can Your Business Survive An Employee Exodus?

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No People, No Growth

Thursday, February 18th, 2016

Keep Your Prospective Employee Funnel Full With These Recruiting Best Practices

Maximizing your company’s recruitment and retention strategy is essential for securing business growth – not to mention sustaining that growth once you’ve achieved your goals. Here are seven quick tips to help you help you boost your existing human resources efforts and take your search for talent to the next level.

Read Also: Fully Staffed & Operational: How To Master Your Employee Recruitment Strategy

Get the team involved.

Traditionally, the best hires are those that have been referred to your company by an existing employee, which is why it’s so important to get your entire team involved in your recruitment strategy. This means that your 100 employees are the equivalent to 100 brand ambassadors – armed with experience and ready to help you spread the word about your company.

That being said, encouraging your existing employees to get involved isn’t always easy. Start thinking of ways you could show your appreciation for their recruiting efforts. One effective tactic is to implement an employee referral program that gives them a monetary reward for their efforts.

Make sure management engages.

Not only is engagement and transparency in management an important part of a strong retention strategy, if you want to encourage your team to actually get involved you need them to believe in your company and genuinely enjoy their jobs. If they are just there for a paycheck, they will be more likely to leave if another, better opportunity comes along and they will be less likely to “sell” the company to prospective employees.

Listen to the chatter.

What differentiates your company from the competition? Is there a reason why your employees would rather work for you than somewhere else? What does your reputation look like in the community and to the men and women you are targeting as potential employees? Your business is a representation of stories told by your employees, customers, vendors, neighbors, competitors and many others. You won’t always be able to control what is being said about you and your company, but you can listen and make an effort to be an active participant in the conversation. Not only does a strong listening strategy put you in a great position to address issues as they occur, it helps you identify potential concerns the public (particularly prospective) employees may have about your company. You can then make an effort to promptly fix any issues that may arise.

Get strategic.

Not only should you be strategic in your sourcing strategy, you should be anticipating your company’s future staffing issues. Pay attention to your turnover rate and identify which positions will likely need to be filled over the next 12 months. It’s also a very good idea to maintain positive relationships internally and externally. You should also formalize a plan to focus your efforts strategies that have proved to be fruitful in the past. For example, what is the best way to target managerial prospects? Which methods proved to be the most successful when recruiting long-term entry-level positions?

Are you looking for advice to help you grow your business and improve your company culture? Check out unsuitable on Rea Radio, a unique financial services and business advisory podcast that challenges old-school business practices and the traditional business suit culture.

By Renee West, SHRM-CD, PHR (New Philadelphia office)

Want to keep your business fully operational with high-quality employees? These articles could help:

Can Your Business Survive An Employee Exodus? 

Are Your Employees Stakeholders In Your Business?

Retirement Plan Design: One Size Does Not Fit All

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What Are The Top 5 Challenges Business Owners Face in Today’s Economy?

Thursday, September 26th, 2013

You may find that being your own boss is extremely rewarding. Starting a business from the ground up takes a lot of hard work, and you’ve been seeing the fruits of your labor. But your success doesn’t come without challenges. Business owners are facing some tough challenges these days, and you yourself may be experiencing some of these growing pains. Here’s a list of the top 5 challenges I’m seeing business owners like yourself facing in today’s economy. Do any of these resonate with you?

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