Employee Engagement

Startup employees

9 Reasons Why Your Employees Are Your Company’s Most Valuable Asset

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When it comes to your company’s most valuable asset, a lot of areas come to mind. Research and Development, marketing, or even a patent might take the top spot. But that’s not even close to your company’s most valuable asset. The answer is the tens, hundreds, or thousands of employees that make up the workforce of your company. In the 20th century, companies considered production equipment to be its most valuable asset.

However, today, it’s considered to be the knowledge of its employees and their productivity. All intangible assets such as patents, copyrights, intellectual property, brands, trademarks, and R&D are created by people. Therefore, people matter most to you and your business. They are the most essential contributors toward profits and shareholder value. That said, people are key assets for any organization. In today’s continuously changing business world, it is human assets, not the fixed or tangible assets that differentiate an organization from its competitors. The knowledge economy distinguishes one organization from another.

How people benefit your business

Employees champion your business and determine the success or failure of it. The work they do determines what customers and partners see, so it’s important for you to treat your employees with the value they bring. Employees leading an organization might be able to be replaced physically, but their skillsets and knowledge can’t be. This is because each person hired brings a different set of skills to the table even though the job yields the same set of skills.

Besides, the skillset of employees accounts for 85 percent of a company’s assets. Therefore, employee efficiency and talent determines the pace and growth of an organization. Organizations need to recognize the value their employees have and praise them accordingly. This includes their knowledge, expertise, abilities, skillsets, and experience. These are all invaluable and intangible assets for securing a future for the company. So when employees feel valued, they will gladly compete in the race and beat the competition.

Photo by Marten Bjork on Unsplash

Reasons employees are considered invaluable assets

1. Essential to providing goods or services.

Improving employee efficiency and performance are major priorities for an organization. Employees produce the final product, take care of finances, promote your business, and maintain the records for decision making.

2. Employees are the first customer of any organization.

If the organization does not have happy and satisfied employees, they will not deliver performance-oriented results. Therefore reducing the profits of the organization.

3. Employees give their 100 percent to any organization.

No matter what size the business is, success is the result of continuous hard and smart efforts put in by happy and valued employees. This results in keeping the organization going, competing with its competitors and elevating ahead of them all.

4. Employees are the face of an organization.

It’s the satisfaction level of your employees that matters the most. So, if an employee isn’t happy, she might spread a negative word about the organization, even after leaving it. What’s more, is that an unhappy employee will lack motivation and will not perform well, leading to unsatisfactory performance. This results in unachievable performance targets, low profits, and employee churn.

5. They are the nurturers of the organization.

Employees are the ones who give their heart and soul to an organization. Similar to how parents raise their children, employees nurture their organization with their values and endless efforts to take it to the top.

6. Skilled people with knowledge.

The most irreplaceable factors employees bring to the table are their skillsets. Their skills include training and development programs, experience in a specific field, and an understanding of companies’ cultures, systems, and work procedures.

7. Employees are the base of a strong and long-running organization.

Employees run the organization, no matter what level. This means their strength, commitment and dedication, and their emotional connection with the organization can’t be judged as assets in monetary value.

8. Motivated employees make a significant difference.

Employees reach new targets, meet customers’ demands and needs, develop new and innovative products, and perform enormous and huge efforts to achieve the company’s objectives.

9. Employees are major contributors to profits and worth of the organization.

It goes without saying, but employees can’t be given a monetary value for the effort they put in to help the business earn profits. This results in excellent customer reviews and creating brand loyalty from customers. Therefore, employees are the most valuable assets an organization has. It’s their abilities, knowledge, and experience that can’t be replaced. So, going forward, organizations need to place emphasis and importance on the contribution that employees that they have in order to propel themselves ahead.

Talking with boss

6 Tips for Having a Tough Conversation with Your Boss

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Just like managers need to have tough conversations with their employees, employees need to have tough conversations with their bosses. Whether it’s a raise, a promotion, or an office conflict, employees need to feel like they can have tough conversations with their bosses without backlash.

As an employee, you want to feel empowered and confident to be able to speak to your boss. You want to build a relationship with your boss where they can be your mentor and advocate. Not only do you want to have that professional relationship, but you also want to have a personal relationship too. This relationship allows you to bring problems to their attention freely and openly.

Without further ado, here are six tips we have for having a tough conversation with your boss.

Explain the situation and context

One of the first steps when approaching your boss with a situation is to state your issue explicitly and give context around the issue. Your boss isn’t going to know what you’re thinking or feeling so you need to explain it to them. You also need to help them understand why you’re feeling a certain way and what prompted that.

Don’t waste time beating around the bush, just go straight into your issue. This doesn’t mean you’re being aggressive; you are just sharing facts from your point of view. By explaining your situation with “I” statements, you can explain your feelings to better explain your situation without coming off as aggressive.

Be honest and truthful

Though this may be a no-brainer, it’s a lot harder than you think to be honest and truthful when approaching your boss. While you want to exhibit candor, you don’t want to do so in a way that comes off as obnoxious. Be graceful and respectful when approaching your boss, choosing your words carefully. Don’t throw people under the bus or play the blame game. Make the conversation about you, not everyone else.

That being said, if something is bothering you, bring it up with your boss sooner rather than later. You don’t want to reach your tipping point before going to your boss with an issue. If you a non-confrontation person, this may be difficult for you because you anticipate the worst-case scenario if you do say something. However, it’s quite the opposite; it might be the best-case scenario if you have the courage to speak up.

Ask for your boss’s perspective

As an employee, you don’t have all the visibility into why your boss makes the decisions they do. You have no idea why they picked your co-worker for a project over you. That’s why it’s key to ask their perspective on the issue you bring to them. Don’t be afraid to ask them why they gave the project to your co-worker and ask what you can do next time, so you are at the top of the consideration list.

Go into the conversation with an open mind. Don’t think that your boss has it out for you because in most cases, they probably don’t. Finding out the reasoning behind their decisions can help you better understand their thought process. As a result, you might end up shifting your attitude and perspective to something more positive by the end of the conversation.

Make sure you reach a resolution and decide next steps

The worst thing you can do when talking to your boss is leaving the conversation unresolved. The whole purpose of meeting with your boss was to resolve the issue by the end of the conversation. You don’t want to leave anything unresolved. Use the time with your boss to bring up any and all issues to make sure you have answers for all of your concerns. Not only will laying everything out on the table will help with your conscious, but it will also help your boss’s too.

A way to do this is by assigning each party action items to complete. Maybe you need to follow up on something or your boss needs to talk to their supervisor. Whatever it is, make sure you decide what needs to get done before you end the conversation, so you have something to circle back on.

Ensure that you and your manager are in a trusting relationship

When talking with your manager, you want to make sure that you can trust them. Like a friend, you don’t want them to spread your conversation around as office gossip. You want to make sure they approach your conversation seriously and with full confidentiality.

In the case that you don’t trust your manager, reach out to another colleague in the company who you can trust and feel comfortable talking to. You want a good gut feeling about the person you’re talking to without questioning their level of trust. If employee-manager confidentiality becomes an issue, reach out to their supervisor to bring the issue to their attention.

Find a time to meet with your boss to make sure you have their full attention

Like many bosses, your boss is probably busy every day between meetings they have and work they need to get done. Set up your meeting with your boss at a time where you know you’ll have their full attention, so they can focus on the conversation with you without getting distracted by other work.

You also want to set up a meeting in person and in private. While a phone meeting is great, it doesn’t lend itself to emotion and body language, both of which convey how you are really feeling. Make sure your meeting is in a private room or your bosses office to have full confidentiality without the office hearing what you have to say.

It’s no easy feat talking to your boss. For some, it’s the hardest thing to do. However, it’s necessary to not only address conflict but build a relationship with your boss. With these tips, you’re sure to feel comfortable talking to your boss the next time a conflict comes up.

Employees looking at a computer

10 Ways to Reduce Employee Turnover in 2019

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High employee turnover can be extremely costly and detrimental to an organization. It’s normal to encounter some level of turnover in an organization due to reasons such as retirement. However, turnover due to other reasons, such as poor employee morale, is not good and should be fixed.

A higher than normal amount of turnover is usually one of the first signs there are significant issues in an organization, and if it’s ignored can lead to even further issues such as a decline in workforce productivity. All of this will eventually trickle down into affecting the bottom line.

In short, turnover can’t be ignored and won’t go away without intervention. It’s essential that you improve your communication strategies, amongst other things to take action to limit your employee turnover.

Management studies on reducing turnover are plenty. In this post, we’ll distill the many mitigation techniques out there and go through some easy and practical ways of reducing employee turnover.

We’ll distill the many mitigation techniques out there and go through some easy and practical ways of reducing employee turnover.

1. Analyze Turnover

The first step in reducing employee turnover is getting a good grasp of how it’s happening and more importantly, why.

This means keeping track of how many employees are leaving an organization in a given year and how these numbers compare with the years before. If there’s been a sudden spike one year, look into why this might be the case. Did a major event happen that year such as an acquisition by a bigger company? Where is the turnover happening? If it’s only within a specific department, was there a new leader hired there that may be causing issues?

Drilling down may help uncover possible hypotheses on why turnover has spiked and ways to solve. Numbers alone aren’t enough; it’s essential to know the underlying reason – the why?

Qualitative insights also help. This is where implementing practices such as exit interviews can be very beneficial.

Most employees that have decided to leave an organization are willing to state why. Be sure that these exit interviews are conducted by an unbiased party such as an HR practitioner and are done confidentially so anyone who reads the takeaways from the interview won’t know who the interviewee was.

Establishing monthly employee surveys can also help raise red flags to leadership if employee morale is sinking, and there’s a chance of high turnover happening. It’s important these surveys are anonymous when completed and isn’t collected at a level where employees or managers handling the data could determine who might have completed it.

Monthly employee surveys are a great preventative measure in flagging potential turnover before it happens.

2. Don’t shy away from praise and recognition

The next tactic to reducing employee turnover is quite simple, low-effort, but very effective.

Make sure employees, managers, and the overall company culture value the practice of giving recognition and praise.

If employees are doing a great job, submit an excellent deliverable, or have gone above and beyond in any way – recognize them for this in front of their colleagues. Or if certain events have happened such as the colleagues being promoted or certain milestones being met by a team during a project, recognize them for the work done.

Praise doesn’t always have to be public. It can also be privately done and still be effective. Take employees out for coffee and let know their hard is work is appreciated.

Don’t go overboard with this and only give praise when employees genuinely deserve this.

Praise is a great way to reduce turnover. Employees will feel like their hard work is being noticed and appreciated – boosting their morale.

3. Show employees the end goal and how to get there

Feeling a sense of progress is critical towards employees feeling fulfilled in their jobs.

This means if they think they’ve stayed stagnant in a particular position and begin to get bored of their job – they’ll start looking elsewhere for new opportunities.

Luckily, this one’s easily avoidable by ensuring that there are clearly defined roles and career progression in an organization.

By formally establishing these and communicating it with employees, they’ll start to understand what’s the next step in their time here and what might be the tasks they need to show they’ve accomplished in order to progress to the next level.

This doesn’t always been dishing out a promotion. Sometimes this can be adding more responsibility to their current role or rotating them across different functions to keep things interesting.

Keep career paths transparent, detailed, and supplementing this with regular performance reviews. This means employees will know what to work on to get to the next level and progress through the company – instead of leaving for the competition.

4. Let employees manage their own time

The next trick to reducing employee turnover is simply providing them with autonomy. When it comes to their daily tasks, this may be hard due to a lack of experience, but freedom and independence in how they manage their time to completing work on their plate are surely doable!

Provide employees as much freedom to set their own schedule, and even where they work from. Introduce options such as work-from-home days, and flexible work hours so that it’s not mandatory for them to be in-office, 8 hours, 5 days a week.

Employees can pick a work schedule that’s optimal for them but also gets work done effectively. Having the option to do this might keep them in the organization cause ultimately, there’s no price one can set on freedom.

5. Pay employees well and offer bonuses

Money matters. And this means employees want to feel like they are compensated well or else they’ll leave.

Make sure annual salary reviews are in place and that compensation is benchmarked with the market rate and to what competitors offer.

This can extend beyond just base salary to include other benefits such as bonuses. Make it attractive and it doesn’t all have to be monetary. Pairing market salary along with flexible work-at-home policies can shrink turnover as employees start to value the flexibility over more pay elsewhere but restricted to being in the office all the time.

6. Align values and purpose

Everyone want’s to feel a sense of purpose to what they’re doing. This is the same at work.

Communicate to employees what it is the organization is striving to achieve, and why their contributions matter. This doesn’t have to be altruistic. The effort just needs to go into helping employees see the purpose in what they’re doing. The key is being able to articulate a company’s purpose in a way that connects.

This might sound complicated. But to keep it actionable, translate this down by ensuring managers communicate the bigger context of what their direct reports do.

An analyst helping crunch numbers in an excel sheet just needs to know that this analysis is going towards identifying bottlenecks in the shipping process – which in turn could be fixed and speed up delivery times for customers. It can be that simple and be enough to give an employee a sense of purpose in the work they are doing.

7. Check-in with employees often

This trick is all about habit and it can be implemented in a fairly easy way within an organization.

Simply ensure that time is carved out for direct reports to have casual conversations about how their job is going with their managers. Make this mandatory for managers to schedule into calendars on a recurring basis with every direct report. Keep them accountable by measuring such practices and making it a part of their annual performance reviews.

This should be a casual check-in for 30 min. or an hour and involves going for coffee or a walk to ask how things are going. This practice alone can be hugely beneficial in making a frustrated employee who’s a flight-risk feel heard and reconsider leaving.

8. Create a rewarding culture

Although rewarding for a job well done is great and much needed. Most often, employees want more than that. They want their time with a company to be more than just work so it’s important to create a sense of culture.

This means hosting regular ‘after work’ events such as having managers gather everyone to go for drinks nearby. Or having monthly team lunches that allows everyone to get together.

Cheeky traditions at work also help such as telling employees to dress up in whacky costumes during Halloween or creating a fantasy football league for employees to participate in.

All this boosts camaraderie and makes the work team feel more like family. Leaving your ‘family’ for a job somewhere else is a lot harder to do and starts to reduce turnover!

Moreover, having a team that’s well bonded also means they’ll be more comfortable in voicing any issues that creep up proactively. This allows an organization to address any problem quickly before leaving their job becomes the only solution.

Though hiring the right employees who are a good fit for an organization is important in reducing turnover. The other often overlooked aspect is hiring or training up good people managers.

Some employees can be high performers that excel at their work but can be horrible people managers who don’t really know how to lead, develop, and instill a sense of culture in their teams. They may often prioritize actual work over activities such as hosting check-ins with their employees to see how they are doing. Because of this, direct reports to some of these managers may have no issue with the company but hate their boss so much they decide to leave.

To fix this, if hiring for managers, be sure to vet their people management skills thoroughly, and if promoting from within, be sure to train them on effective people management!

10. Make wellness a key priority

Tackling a sudden spike in turnover can seem daunting, but there are simple, habitual strategies that can do wonders in reducing turnover in an organization. Take our suggestions above and put together a task team to apply it to a company. Remember, high turnover left unchecked can be disastrous in the long-run.

Takeaway

Tackling a sudden spike in turnover can seem daunting, but there are simple, habitual strategies that can do wonders in reducing turnover in an organization. Take our suggestions above and put together a task team to apply it to a company. Remember, high turnover left unchecked can be disastrous in the long-run.