Employers have had it all their own way for a decade or more. They have been able to freeze wages, cut benefits, force overtime and even deny vacations with impunity. Now, for many, it's time to pay the piper.
There is a saying, "what goes around, comes around," which means in this case that if you have spent years abusing your employees, the first company that offers them even the slightest uptick in benefits or salary will pick off your best workers in the time it takes to sign on the dotted line.
I can walk into a company and tell you within seconds whether or not its employees are well treated and happy. I'm sure you can, too. It shows on their faces, in their body language.
Spend a little time talking to them, and you can easily measure a worker's engagement, warmth and sense of shared purpose.
As unemployment declines, wages rise, and good workers become critical to your bottom line, you might want to consider that happy employees are critical to on-going productivity and talent retention. It has been shown over and over again that the better the corporate culture, the more a company will earn.
Don't just take my word for it. The 100 best companies to work for, according to Fortune Magazine, consistently outperform their competitors in sales and profits. They also add new employees at five times the rate of the national average. Fortune uses a "Trust Index" which measures employees' workplaces, including the honesty and quality of communication by managers, degree of support for employees' personal and professional lives, and the authenticity of relationships
While Fortune 500 companies, for the most part, strive to offer employee benefits such as retirement plans, healthcare insurance and the like, what really wows employees are the perks that many small and medium-sized businesses provide. Unlike the cookie-cutter benefits of mega-firms, these are a more tangible sub-set of service-oriented perks, each customized to address individual employees' everyday needs.
What, you may ask, are some examples of these kinds of perks? Take my company as an example. When I went into surgery for six hours for prostate cancer last year, the company's management team sat with my wife in the waiting room for the entire operation.
When our dog, Titus, required spine surgery this winter, both my wife and I were paid for the two days we were out caring for him. In addition to our 401(K) and health insurance, we also have a SEP IRA, dental insurance, unlimited time off, first class travel, company pets come to work (unpaid), unexpected bonuses, financial help for our parents in time of need, gifts, parties, presents etc. Naturally, everyone in the region wants to work for us.
But here's the point. None of us take off more than two-three weeks a year because we love it here. Prospective clients are struck by the attitude and team-work of our employees. This is no accident.
We have practically no turn over, despite constant offers from other firms.
The power of these perks cannot be understated. You may not be able to provide the level of personalized incentives that we enjoy here, but that does not mean your firm must settle for simply "me-too" kinds of incentives. Remember, aside from showing that you care, these efforts go right to the bottom line. And who among us would not want higher sales, profits and return on investment?
Bill Schmick is registered as an investment adviser representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.
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Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.