So, we are in a totally different economy now. Just a few short years ago, unemployment was high and many businesses were struggling to keep the doors open. Consumer confidence was relatively low and people were hanging on to their cash.
Things have changed. Business is booming and unemployment is at a record low. In fact, the city I live in, Nashville, TN, has the lowest unemployment rate in the nation this month at 2.2%. Everyone is short of help and turnover is ridiculous (especially at entry level positions). It is time for business leaders to start thinking differently.
It’s not always about the money. As millennials become more and more prevalent in the workforce, company culture and good working environment are becoming more and more important. You can complain about it or you can respond to it…your choice.
While it is important to pay a market level wage, if you want premium returns, you might want to rise a bit above the average. But more importantly, company culture is what will keep your team together. In addition to their wages, what else to they get? Flexible hours, team level bonus structures, idea sharing and leadership involvement with front line teams are becoming more important.
One company I know of has very strong culture, and an interesting way of handling resignations. If one of their team members decides to leave for a little more money, they wish them well and tell them that if things don’t work out to give them a call. What they are finding is the good percentage of the people that leave for more money, call within 60-90 days asking to come back at their former wage. It has taken a while, but their turnover has slowed dramatically and the team is performing at peak performance.
It’s a new world with different rules in this economy. The stubborn “old school” managers will certainly find themselves on the losing end. It does not matter how it was back in the day. What matters is how you respond in this day. Choose wisely.
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Source: Craig’s Blog