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Valuing precious assets

24th Oct 2013
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As a business owner, if you invest a great deal of money in an asset, you’d spend time, effort and money to look after it wouldn’t you?

You would not allow a machine to rust or stock to perish. And you would look after your customers who, after all, ultimately pay your wages. But it is surprising how many managers overlook some of their most valuable resources – their staff.

In many service industries (including insolvency) the future of the business depends on the quality of service provided. The biggest cost is the wage bill. If staff turnover is high it is generally an indicator of underlying dissatisfaction amongst the workforce.  

High staff turnover means:

  • Recruitment costs
  • Hidden expenses of the time taken interviewing and selecting
  • Costs of training new staff
  • Negative impact on service standards
  • Disruption for existing staff and customers

Keeping staff is not rocket science – it’s just part of good management technique. Here are a few basic ground rules which should minimise staff losses:

  • Recruiting the right people –select somebody who not only has the right experience and qualifications but who seems to fit into your organisation
  • Communicate – a transparent, open management style ensures that staff do not feel alienated or left out. Apparent secrecy results in unfounded rumours and mistrust.
  • Respect – should be shown to all staff. They should be involved and encouraged to offer constructive feedback about aspects of the business. Even if they disagree managers should listen and consider opinions
  • Making sure that staff know what is expected of them – sounds obvious but a good way of demotivating staff is criticising them for not doing something when they were never told what was expected of them. Employees should have a clear understanding of their role and responsibilities.
  • Praise – it’s very easy to value somebody but forget to tell them – especially when it is busy, but reminding somebody that they are valued does a huge amount for self-esteem. Conversely, it can be very demotivating never to receive recognition.
  • Benefits – assuming the company can afford to, it should pay a realistic wage – roughly in line with the going rate for the job in that geographic location. Paying well below par can cause resentment. There are low cost alternative benefits to pay rises when cash is tight.
  • Development  - a structured strategy for staff development gives individuals a clear view of what prospects (if any) lie ahead. Many staff get job-satisfaction by being stretched and facing a challenge.
  • Social events – are a brilliant way of cementing a team. These don’t have to be lavish affairs and it is good to see staff at all levels attend.

If there is a feel-good feeling amongst your staff it will permeate through to your customers in better service, staff turnover will be low and you won’t have the aggravation and cost of recruiting.

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