In prosperous economic times, businesses look for ways to retain employees. When the economy is less robust, discussions about employee retention give way to brainstorming how to best "squeeze" more work out of fewer employees, reasoning that since it is more difficult for employees to find work in tougher times, the employees will gladly accept the additional work.
While this scenario is popular, it is short sighted. Employees remember, during more prosperous times, how their employer treated them when times were tough. Moreover, countless studies have shown that stress, poor communication and the perception of unfairness adversely affect an employee´s productivity and are the primary contributors to absenteeism. Contrary to the beliefs of some employers, an employee who is afraid of losing his job will not work harder, but rather, will be less productive (resulting in decreased revenues) and more preoccupied (affecting the company´s work product).
Countless studies have shown that stress, poor communication and the perception of unfairness adversely affect an employee´s productivity and are the primary contributors to absenteeism. Employers who actively sustain a positive work environment reap vast benefits - according to the Journal of Applied Psychology, companies could experience up to a 25% improvement in the quality and quantity of production. Happy employees are more likely to remain with their company, take more pride in their work, are more efficient, and they tend to work harder, much to the joy of their employer and its clients. This has a direct impact on the company´s bottom line, by increasing the company´s profit margin and reducing the costs associated with hiring and training new employees.
Thankfully, there are many simple, inexpensive ways to entice employees to become more diligent, hard working members of the team:
Extend common courtesies to all employees
Simple common courtesies, such as a simple hello and "how are you doing," go a long way to foster a warmer office environment. Employees believe that supervisors who ask how they are (and listen to the answer) genuinely care about them. They become more vested in their work, and more eager to help around the office to ensure smooth operations. By contrast, an unhappy employee will do only what his job description specifies, and contend that other tasks are "somebody else´s problem."
Remember also to thank employees for a job well done. Recognizing their contributions makes them feel like a part of the team, and they will adopt a team mentality. Simply extending social courtesies like saying please, thank you and admitting when you are wrong is an easy, cost-efficient means by which to make the workplace a happier place.
Foster positive relationships
Studies have shown that the better people know one another, the more willing they are to "help out" in a bind. To that end, you may consider taking the office (or department, in a larger firm) to lunch once a month and forbid them from talking about work. This will encourage coworkers to relate to one another on a personal level, which will shape bonds between coworkers. These bonds are necessary to instill a sense of teamwork in employees. For firms short on petty cash, a monthly potluck organized by employees will also serve this end. If the office is full of families, organize a work outing involving families, such as ice skating or miniature golf.
Employers must not confuse a congenial work environment, full of satisfied employees, with one that necessarily involves excessive play and insufficient work. Employers may avoid excess play by setting aside specific times for employee interaction and company events. By limiting the time and place of such activities to monthly scheduled activities, the employer can maintain the decorum appropriate for the workplace, yet cultivate the kinds of relationships upon which trust and loyalty are based.
Provide snacks and drinks
Everyone is familiar with the three (or four) o´clock slump. By providing snacks and drinks to employees, the employer can ensure that the slump is brief, to the benefit of productivity. Buying in bulk will help the company keep costs down while stocking the shelves with water, sodas and juices, chips, muffins and granola bars. The firm may even consider allowing employees to select the snacks and drinks before ordering, to prevent waste.
Celebrate birthdays
A card and a cake go a long way, and are inexpensive ways of expressing appreciation on an employee´s special day. The company may also consider giving the employee a gift, such as a $50 gift certificate to a bookstore or restaurant. The bookstore gift certificate may lead to a better educated employee, and a gift certificate to a restaurant allows the employee to enjoy an evening with his or her family, who may recall this kind act next time the employee has to work late or come in on the weekend.
Showering employees with birthday cards, cakes and gifts are particularly nice gestures requiring minimal investment, and producing large returns from very grateful employees. If the firm can afford it, a small gift could also be appropriate to celebrate an employee´s anniversary with the firm.
Host breakfast once or twice a month
Another inexpensive way to brighten employees´ day and provide for a more gratifying work environment is to bring in donuts, muffins, pastries or bagels with cream cheese a few times a month, telling employees that it is the company´s way of thanking them. This is also a small gesture requiring little effort, and will make employees feel appreciated.
Take charge of company holidays
Work tends to be light around the holidays. On certain days that you expect very few clients will call, give the staff the day, or at least part of the day, off. For example, very few clients will call the day after Thanksgiving, Christmas eve or New Year´s eve. Consider giving receptionists and secretaries the day off, or require only a half day to complete those projects requiring immediate attention. They will appreciate the gesture and will work harder for you the day before and after, in appreciation of, and to make up the work for, the day off.
Mentor your employees
The most effective way to retain employees, of course, is to have a vested interest in their learning. Help them become better at their jobs, offer constructive criticism and explain why things are done a particular way. They will become better employees and they will be thankful to you for having taken the time to train them.
Institute an incentive-based bonus system
Incentives encourage higher productivity, improve morale and discourage employee flight for higher paying jobs. Companies rely on their employees not only to sustain business, but also to attract it and to advertise for the company. Some companies benefit from offering monetary incentives for hard work or client referral, and reimbursement for participation in outside activities that may reasonably lead to client referral. Such a system will ensure that the company pays bonuses when it knows that additional money is flowing in, and additional incentives can be supplemented, such as event tickets or dinner, or additional time off as a reward for good work.
Lead by example
If you want employees to invest their efforts in the firm, do the same. Take an interest in what is going on at the firm and with your employees. Try to solve problems as best you can. Put forth your best work. Advertise for the firm. Ask for help when you need it. Encourage your employees, by example, how to be the best they can be. Providing leadership is probably the most difficult aspect of management - and you don´t have to be right all the time, but you do have to make an effort.
Of course, it will take more than just a few gatherings, niceties and theater tickets to maintain a company full of happy employees, but minimal efforts can produce considerable rewards. Best of all, these efforts need not be costly, and even those expenditures will likely produce profits several times the investment.
