Such is the case now with the employee acquisition and turnover problem many businesses find themselves facing.
In Stop Calling it a Labor Shortage—It is a Turnover Crisis, John DiJulius shares these alarming statistics:
If you’re going to raise your customer satisfaction score (NPS) first, you need to have superior employee satisfaction (eNPS).
The Biggest Mistake Companies are Making Right Now
“You can’t hire your way out of a bad culture.” ~ John DiJulius
DiJulius offers, “Too many companies are trying to solve this staff shortage issue by hiring people as fast as they can just to fill positions and keeping employees with bad attitudes. Both are huge mistakes. “A” players hate working with “B & C” players. Unengaged employees are like squatters taking up space and sucking the energy out of your organization.
What DiJulius offers is what I’ve discovered with my customers. Those who have a good culture, are not having issues hiring or retaining their teams. DiJulius offers a similar explanation, “I have seen first-hand, companies with the strongest company culture, long before the pandemic, are significantly less affected by the so-called labor shortage…… organizations that churned and burned their team members, where a great workplace culture was only lip service, are the ones being hit the hardest by the employee turnover.”
DiJulius compares the pandemic to people who survived a near-death experience. It’s caused employees to reevaluate their professional careers, not only what they want, but also what they aren’t willing to tolerate anymore. It’s caught a lot of leaders and companies flatfooted.
He feels too many leaders are using The Great Resignation Era as a crutch. A significant percentage of people who have quit over the last 15 months is a result of poor company culture. These are leaders who focused almost exclusively on productivity and bottom-line profits.
Attract A players
A recent article on ScaleUps.com This restaurant company positioned its eateries for fast growth despite the pandemic, offers several actions Pitts
Co-CEOs Raji Sankar and Randhir Sethi, embraced Topgrading, a system for hiring, coaching, and retaining top talent recommended in Scaling Up.
Most hires come through referrals from employees—which Wholesome International rewards with a $500 referral bonus. “We made it very aggressive, especially as the market gets tight,” says Sankar.
To attract talented managing partners, they introduced a compensation system, like ‘Outback Steakhouses’, in which these leaders receive a base salary plus a share of the bottom line based on the performance of their restaurant; they don’t have to put money down to participate. Currently, there are six managing partners in the program.
Creating a worker-friendly culture
Like Chick-fil-A, which is closed on Sundays, restaurants all close at 8 p.m., rather than 9 p.m., to allow employees to enjoy evenings at home with their families. When Sankar and Sethi decided to make the change, they were concerned with the financial impact, yet thought, “By the time other people will be closing down, our team will be home–they’ll love it,” recalls Sankar. Customers, they discovered, began showing up at the restaurants earlier to order.
These practices echo the theme of Verne Harnish’s Scaling Up Compensation: how you compensate your team can be a strategic lever to differentiate you from your competition.
To solve your business employment issues, recognize two important considerations.
“Days of lighting fires under people are over. Days of lighting fires inside people are here.” ~ John DiJulius
This Simon Sinek 9 Minute video provides clues to how to create a company people want to work for.
To create an environment where everyone is inspired to give their best, contact Positioning Systems today to schedule a free exploratory meeting.
Growth demands Strategic Discipline.
Discipline sustains momentum, over a long period of time, laying the foundations for lasting endurance.
Meeting Rhythms achieve a disciplined focus on performance metrics to drive growth.
Let Positioning Systems help your business achieve these outcomes on the Four most Important Decisions your business faces:
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PEOPLE |
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EXECUTION |
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CASH |
Positioning Systems helps mid-sized ($5M - $250M) business Scale-UP. We align your business to focus on Your One Thing! Contact dwick@positioningsystems.com to Scale Up your business! Take our Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.
Automation is absolutely a given in today's business market. It’s how businesses will operate now and in the future. Guest writer, Cristi Waterson, shares Four Different Ways to Handle Your Business Through Automation in our next blog.