By Jennifer Blanchard | HRTools.com Business Writer
During times of economic meltdown, it’s normal for a company to want to pinch every penny it has and find additional ways to reduce costs—layoffs usually being the first thought that comes to mind. But before you hit that “execute” button and downsize your workforce, think about this:
- How will you continue to be successful (and successfully compete) in the future without your top-performing employees?
- What will you do after the economy gets better and your competition is smooth-sailing while you’re stuck trying to find and hire people to replace the employees you laid off?
Your Employees are Your Best Asset
Although you might not see it right now, your employees are truly your company’s best asset. And the way you’ll start to realize this is by shifting your thoughts from “employees cost money” to “employees make money.”
Think about it this way…how do you make money at your company? Answer: By selling products and services, by offering your customers good customer service, by being the best in your market, etc. And all of these pursuits start with your employees, which is why it’s time to stop viewing them as “costs” and see them as “profit-agents.”
You need to:
- Think Partners, Not Employees—You hired each and every one of your employees. You explained to them your goals and mission for your company. They have stuck with you and have spent 8-plus hours of their days and 40-plus hours of their weeks working hard for you. They are not just employees; they are your partners. You are all striving to reach the same goals, together.
- Think Investment, Not Expense—When you recruit, hire and orient an employee, it costs money. It also costs money to train and continue to train employees. It costs money to give employees benefits and vacation days and paid holidays. But all of this money you’re spending is not just money spent, it’s an investment in the future of your company and the future of your people. After all, you have to spend money to make money, right?
- Think Foundation, Not Burden—Employees are the foundation of your company. Your company won’t work without them. Which is why you need to give your employees everything they need to succeed, including training, counseling, relationship-building, benefits, rewards and recognition—the works. When you start to view giving employees everything they need as a way of building a strong foundation for your company, you’ll see all employee-related tasks as less of a burden and more as a way of making your company strong and successful.
Steps to Take
Here are a few steps employers can take to ensure they are protecting their greatest asset—their employees.
- Hang On Tight!—During hard economic times, it’s easy to look to layoffs and downsizing as “quick fixes” for saving money. But in the long run, this is a huge mistake. If you lose your best people, who will keep your company running successfully once the economy gets better? It’s not like you have the time, energy or resources to do everything yourself.
This is why you need to hang on tight to your employees and do everything you can to make sure they weather the economic storm right alongside you.
- Build Relationships—One of the best ways to retain your employees is to show them that you care. And you do this by building better, stronger relationships with them. They are your partners, your people. Get to know them like you would your best friend. Find out what they need from you. Ask them about their goals in life. Learn what makes them tick.
When you build working relationships with employees, you are helping them to know you better as well, which in turn can create trust and loyalty to your company. Treat your employees well, show them that you care about them and they’ll always be there to stand behind and support you, especially when times are tough.
- Offer Low-Cost Rewards—Rewards don’t have to cost a lot of money to be appreciated. Employees just want to know that the hard work they put in and the results they produce aren’t going unnoticed. And rewards can be anything from allowing employees to wear jeans one day a week to bringing in breakfast one morning as a thank you for a job well done to letting employees leave a couple hours early on a Friday afternoon so they can start their weekend.
Employees aren’t looking for monetary hand-outs (although that is a very nice reward if your company can afford it); they’re just looking for their employer to recognize them and the work they do. Recognition is one of the easiest ways to make employees feel appreciated, which will also help you retain them.
- Find Alternatives to Downsizing—Although it sometimes seems easier to cut costs right away by laying off employees, it’s usually a big mistake. You need your employees to continue being successful, period. (Admit it, you wouldn’t be half as successful as you have been without your employees.) And now is really the time to show them that you care about them.
You need to try and look at things from their perspective—the down economy is taking a toll on them as well. So why make things even harder for them by laying them off? Instead, find alternatives to downsizing that will help you cut costs without cutting out your company’s most important asset.
Additional Resources
Once you are able to view your employees as an asset, then you need to know how to retain them and keep them happy, motivated and productive. To help you do this, here is a list of HRTools.com Insights that will get you started on the path to creating employee bliss at your company:
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