Connect with us

Managing Staff

Fostering Loyal Employees

Stop managers from leaving and launching competitor businesses with incentives and tight contracts.

Ed Hatton

Published

on

FosteringLoyalEmployees

Challenge

A local funeral manager looking to grow his company with the right staff is struggling to find employees who can carry his vision to the next level. Instead, he finds that employees in whom he has invested time and money are willing to leave his employ and take his ideas with them.

Solution

This entrepreneur has stated a problem that will be recognised by many business owners with businesses in the early stages of development. When he launches his company he becomes responsible for marketing, finance, customer service, technical expertise and many other roles. Eventually he sees the opportunity to grow out of the start-up phase and expand the business, but cannot do so because he is already working to his capacity – and has probably compromised his family life and learned to sleep a lot less while doing so. Some entrepreneurs never get out of this trap and stay in the start-up phase. Not a lot of fun.

In this case the entrepreneur runs a funeral parlour and has recruited potential managers to expand the business geographically. He trained them in the formula which had allowed his start-up to succeed, only to find that as soon as they believed they knew enough about the business to start their own parlours they resigned and attempted to go into competition with him. To compound this problem ex-managers opening their own businesses will frequently compete on price and try to lure customers from their former employer. By so doing they will reduce the price expectation among potential customers. Although many such offshoot businesses either do not get off the ground or fail early, the lower price perception remains.

Entrepreneurs in many fields, PR agencies, small parcel delivery services and IT specialists among them will immediately recognise this problem. Staff members leave to go into competition and then fail after causing turmoil in the market. Why do they fail? It is part of a fundamental problem of would-be entrepreneurs convincing themselves that technical expertise in the chosen field and a lower price than the current suppliers are all that are needed. Of course that is far from enough. Entrepreneurship requires quick thinking, ruthless financial management, excellent salesmanship, capital, attention to detail, the ability to compete other than on price and a host of other attributes. For an ambitious employee who wants a greater share of the action it may be better to talk to the business owner about setting up a subsidiary or franchised operation rather than going into competition.

Recruiting the right staff

To return to the question posed by the entrepreneur – how does he escape the trap of recruiting and training potential managers so that he can grow his business, only to see them leave and open competitive funeral parlours in his target growth areas? He has made a good start by recognising the problem and asking for advice on how to address it.

Next he should define the type of managerial assistance he needs. In this case he has assumed that the right way to go is by having branch managers to open and run satellite branches, but he should also consider other models. For instance, a business development director to supervise the growth and manage branch managers could be more effective. If he does go the route of branch managers he should recognise that they will become reasonably senior people. He must be sure of what responsibilities and authority they will have, and therefore what qualifications and personality types he needs before commencing recruitment.

Risk vs reward

The next steps could be both carrot and stick, to keep the potential manager on board and motivate him to help the business to grow.
The carrot part could consist of bonuses, incentives (travel, prizes, business training or others), profit share or even shareholding options or franchise ownership on achievement of key performance indicators. Clearly both short- and long-term objectives and incentives must apply to ensure extended employment.

The stick part should definitely be a restraint of trade agreement with all potential senior employees. He should not skimp on the preparation of this agreement; rather pay some legal fees now than argue through the courts later.Anyone planning to open their own business could reduce future stress levels by recognising the potential limitations brought about by being the only executive and having no more bandwidth. They should factor solutions to the risk of getting locked in to the start-up phase into their business plan.  And like this entrepreneur, never be afraid to ask for help if they need it.

Ed Hatton is the owner of The Marketing Director and has consulted to and mentored SMBs in strategy, marketing and sales for almost 20 years. He co-authored an entrepreneurship textbook and is passionate about helping entrepreneurs to succeed.

Advertisement
Comments

Managing Staff

How The Digital World Has Impacted HR

Here are a few ways in which HR has changed.

Published

on

digital-human-resources

Almost every conversation that happens within a business environment is around growth and how technology is changing the way we do business. With few industries left untouched, the digital world has radically changed the way individuals work, creating an even bigger demand for real-time experiences.

The HR department deals with an influx of messages and emails on a daily basis, so in order to make things easier, digital has introduced a variety of different online tools that have certainly helped set the tone for the future of organisational management. With employee cultures, engagement and productivity being a few of the most important topics circulated internally, HR has a fundamental part to play in getting existing employees to adopt a digital mindset that supports this new-age culture.

The quicker businesses take advantage of technology to manage performance, make the hiring process easier and give people access to their own personal information, the quicker it will separate traditional workplace thinking from today’s thinking.

Here are a few ways in which HR has changed:

Cloud computing and online apps

With previous admin and other HR tasks being done by hand, cloud computing has now made everything faster and simpler. Professionals now have access to the latest online tools that will help streamline processes and allow individuals instant access to their own personal information without having to ask for it. This also speeds up the process and takes a lot of extra, unnecessary work off HRs shoulders.

Related: Is Leveraging Your Resources Getting The Job Done Properly?

In the upcoming years, companies can expect cloud-based HR systems to become more automated and mobile friendly. This means that HR and management will be able to access employee payrolls, CV applications and more, with just the click of a button.

People analytics

One of the many benefits that digital has created for HR is the availability of employee data. More companies have started using online applications to monitor employee performance and company productivity. HR departments have started tracking employee behaviour and patterns through their selected app, making employee feedback easier and more efficient. If any employees have complaints, questions or queries, logging these requests online will make it easier for HR to deal with, considering the amount of content they receive, every day. This will also help them to make more effective decisions.

It’s no secret that a company’s most valuable asset is their people, and when looking to motivate employees, track employee training and individual performance or set up a training programme, then online is the way to go. By having a more holistic understanding of your people and how they’re performing, HR can better support a culture of feedback, engagement and motivation. This kind of approach will also enable employees to better align their personal goals to bigger business objectives.

Real-time feedback

Because the digital age has created the impression that things can get done quickly, in real-time, employees feel the need to give and receive feedback with an instant response. Real-time evaluation is much more effective for something that needs to change than an annual or quarterly review would be.

If new procedures, policies, meetings or activities get announced, employees can immediately give their feedback on a specific topic or outcome. This will also help you know when to make changes both within the organisation and with employees. For example, employees who don’t measure up to their KPI standards can be subjected to additional training or can be let go in favour of someone else who can come in and do the job better than they do.

Related: What Happened To The Workplace? How To Make It More Human

AI, VR and AR

Gone are the days where robots, VR and AR were simply jargon used among tech geeks. These terms have officially made it to everyday conversations, between business owners, employees and HR leaders. Virtual Reality (VR) which can be identified as a recreation of reality, is now being harnessed by companies in their training activities, as well as Augmented Reality (AR) which enhances technology. These elements are starting to become far more integrated into internal activities, helping employers engage better with employees, making activities more interactive and fun.

While many advancements have been made to the HR department and even HR management courses at colleges, there are countless others to look forward to. New tech innovations are introduced every day, creating even greater opportunities for businesses to align their goals with HR.

Professionals will need to keep up to date with the latest trends and develop their own strategies to stay within the path of progress. Much like all things digital, we all have mixed emotions when it comes to new trends but in order for companies to stay relevant, they will need to adapt their company goals to meet these challenges. Technology is only going to keep moving forward.

Continue Reading

Managing Staff

A Culture Of Discipline Critical For SMMEs To Thrive

Employees are the heart and soul of every organisation, especially for Small, Medium and Micro Enterprises (SMMEs).

Thabang Rapuleng

Published

on

small-business-discipline

Employees are the heart and soul of every organisation, especially for Small, Medium and Micro Enterprises (SMMEs). As a result, the implementation, as well as enforcement of clear workplace policies and practices is critical to the success of these companies.

With South African Labour Law as strict as it is, we are still finding a significant number of SMMEs that do not have any formal policies and procedures, which increases the risk of these companies not complying with labour laws.

This is often as a result of SMMEs not having the necessary manpower or finances to have fully-fledged human resources (HR) departments. It can therefore be a common occurrence to find SMME owners at the helm of HR divisions.

An owner-run HR department will also not necessarily be overly familiar with labour laws. The company will often do something that is “good for business” but not advisable in terms of the law. This could lead to poor decisions being made and could be detrimental to the future of the company.

Related: 3 Steps To Find And Keep Top Talent In Your Business

Poor communication of policies and procedures is another area of concern for many SMMEs, resulting in employees often being unaware of HR policies and making them likely to infringe on these policies. New employees may also find it difficult to adapt to the business and employees could end up losing what could have been a valuable asset to a growing business.

A culture of discipline is essential

Discipline with regards to the enforcement of policies must be considered as a day-to-day management function, rather than a once-off or ad hoc event. This approach will ensure an issue is resolved before it spirals out of control.

For example, if an employee takes an extended lunch break, and the employer allows it to happen, it will send a message to other employees that this is perfectly acceptable. Employers will soon find other employees adopting a similar approach, possibly resulting in a large-scale disciplinary process. If the employer took the time and initiated a disciplinary discussion with the one employee, it would have communicated to other staff that this type of behaviour is not tolerated, avoiding a potentially bigger issue.

This is not just an issue in SMMEs. CDH often finds large corporates also struggling to maintain discipline on a day-to-day basis. In some cases, corporates tend to wait until an employee has made a significant mistake or serious act of negligence before intervening.

Record-keeping is your ally

Keeping a record of all disciplinary matters is an essential part of creating a culture of discipline in the workplace. It is critical that all verbal and written warnings are recorded and kept in the employee’s file.

Related: Servant Leadership – Will You Serve?

Under South African Labour Law, an employee must always be allowed to state his/her case in all disciplinary matters, irrespective of the seriousness of the infringement.

Before the employer issues a verbal or written warning, the employer must notify the employee of his/her infringement. The employees must then be given the opportunity to state their case and if the employer is not satisfied with their explanation, the employer may then legally issue the warning.

For more serious matters, which verbal or written warnings will not solve, you must follow more formal steps, such as disciplinary hearings. However, if you maintain a culture of discipline on a daily basis, you will rarely have issues escalating to such a degree.

Correcting an overall workplace culture is far more difficult than rectifying a small incident. When an employer has to correct an entire culture that is deeply entrenched in their business, the process can be more expensive and take much longer.

Continue Reading

Managing Staff

8 Ways To Upskill Your Call Centre Team Before Year-End

For South African call centres, November is the busiest month of the year, so to get in on the action, it’s only appropriate for Olico to provide a few tips on how to upskill your call centre agents.

Gareth Moutain

Published

on

call-centre-team

As we’re heading into the 2017 home-stretch, many companies will be concerned about hitting those final sales figures. Apart from being a tough year financially, traditionally sales tend to lag behind at this stage. But there is hope.

For South African call centres, November is the busiest month of the year, so to get in on the action, it’s only appropriate for Olico to provide a few tips on how to upskill your call centre agents.

1. For sales, balance is key

A firmly held belief is that the more leads allocated per seat, the more sales that seat will bring in. That’s incorrect. Give the agent too many leads, and they will give up too easily on a call, stopping at the first hurdle experienced. Too few leads mean they might miss out on sales opportunities. Finding the right balance is essential, bearing in mind that all leads should be made the most of.

2. Improve the opening script

In a call centre environment, agents must know how to capitalise on that brief period of time to get a foot in the door. The opening script is absolutely vital, and it can be enhanced by simply adding personalisation to it. Make sure the person is greeted by their name/surname, with agents encouraged to add some energy to the lines to make it stand out from other call clutter.

Related: The Festive Season Might Be Over, But There’s No Rest For Call Centres

3. Provide the origin of the lead

Tying in closely to the above, sales will improve if agents know where the lead comes from. If the lead is from a person who responded to an email campaign, it must be mentioned in the script. Once the person knows the call is related to a request they sent, they will immediately form rapport with the call centre agent.

4. Product refresh training

Much like a car sometimes need a retouch to bring back the shine, so too do call centre agents need a refresh on the products they are selling. Products also evolve, so providing agents with a short course on new benefits, while re-emphasising the key ones, is a great idea.

5. Objection handling

Closing a sale through the telephone is hard work, and call centre agents must be made aware of all the tricks of the trade to seal the deal. If a consumer is not keen, sell harder. If there are regular excuses, find their counterpoints. Is the client’s home language isiZulu? Find the agent who can help. Give them a reason to stay on the phone.

6. Stick to the appointment

Time is money they say, so if the person requested a call back on a specific time, make sure the appointment is kept. Customers don’t respond well if a time slot was missed and yet another call catches them at a bad time.

Related: Why Tyra Banks Cold-Called Zappos’s Tony Hsieh

7. Improve quote ratios

It’s easy – more quotes mean more sales. If the potential customer is provided with a quote, the chances of them converting to a sale is considerably more certain. Where the problem comes in, is guiding a lead through the call to be able to quote. For call centres this means tailoring the script to elegantly move from “Good morning, Mr. Williams,” to “Our life policy will cost you R350 per month”.

8. Incentivise!

With the holidays and Christmas coming up, everyone needs that extra cash, that’s why the time is now to really incentivise sales. Big paydays for agents and teams who sell the most will provide the kindling needed to get those sales fires burning.

Continue Reading

Trending