Managers have a lot to gain by reducing personnel turnover, which is the single most important indicator of low morale. Although sometimes viewed as inevitable, turnover is a controllable expense. That's the concept that's often missed because it's a cost that's not easy to measure.
When good people don't stick with us, business suffers. Many managers overlook the potentially devastating impact of high turnover on profits until it's too late. Because making money is important, it's essential to examine anything that interferes with profitability. Here are several things that can be done to improve profitability and raise morale.
First, get employees to make long-term commitments by finding out why good employees leave.
In a survey conducted with 500 highly productive employees, I asked why they left their previous employers. Here are their answers in order of frequency.
- "I had insufficient opportunity for advancement."
- "My manager didn't keep me informed about what was going on. I often heard the news from customers and other sources."
- "I didn't feel comfortable expressing my feelings, especially when I had a new idea or different way of doing something."
- "I thought the pay scale was unfair."
- "I received little or no praise."
- "My manager used unfair promotion practices."
Second, it's especially important that new employees go through some type of orientation to the new job.
The more important, accepted, and secure new people feel, the better the likelihood they will stay for the long haul.
Third, find ways to improve the level of morale.
This often surprises managers who ask, "Why fuss with morale? Just get the job done." Morale is tied to profits. That alone makes it important. It also involves efficiency, quality, cooperation, productivity, and financial competitiveness.
Some of the factors that impact morale are:
- attitude toward change
- consensus on the goals of the business
- standards and values
- concern for people
- rewards and punishment
- communication
- market and customer orientation
- team pride
These variables affect morale and the future success of every business. High morale is elusive and often seen as unpredictable or even unattainable. Acknowledging management's responsibility for morale and turnover opens the door to creative solutions for keeping good people.
Fourth, look closely at uncooperative employees.
Every business has its share of troublemakers. How they're managed directly affects how they respond. Some need discipline; others need encouragement and guidance. You may decide to fire the worst of the worst. Others will voluntarily quit. Disruption of any kind impacts business operations.
There's another example in the expression, "You can lead a horse to water, but you can't make him drink." The same is true of employees. Those with bad attitudes or an unwillingness to cooperate are often a lost cause. However, no one succeeds or fails in a vacuum. If an employee is not successful, look in the nearest mirror. Managers share responsibility for the successes and failures of their people.
In my book, "The High Cost of Low Morale … and what to do about it," (St. Lucie Press, 1997), I offer insight into how businesses of all sizes are improving morale, reducing turnover and becoming more profitable. Each of nine chapters overflows with ideas for managers, supervisors, and business owners. Regardless of the size of your operation, the principles are the same for reducing morale problems. Here are some thoughts from several chapters of the book.
Explain the "why"
Just as customers want to know "why" your product or service is best, employees want to know 'why' they're asked to do certain things. In an interview with Jim Tietjens, manager of special sales for Rawlings, a sporting goods manufacturer, he explained:
"Our customers want to know where the merchandise is being shipped, how, when, and 'why' if something goes wrong. Just because a truck pulls away from the warehouse doesn't mean the job is over." He keeps in touch with his customers to assure quality service. He makes it easy to do business with him. Tietjens calls it "out-hustling" the competition.
His customer-oriented focus goes further. "Education and communication is the key to being a good manager. People need to understand the business. For example, when a new assistant joined me, I felt it was important for her to know all of the 'whys' behind the type of sales we make," said Tietjens.
Many of his sales are to middle people who re-sell Rawlings bats, balls, gloves, etc., to the end-user. In many cases their product is purchased and given away to attract more business for their buyers. For example, a Pizza Hut promotion with Rawlings' basketballs increased restaurant sales for their customer.
Tietjens says he meets with his team daily if necessary. He wants to assure a positive end result. He reminds them never to promise what they can't deliver. Motivated and knowledgeable employees are prepared to serve their customers, especially when they're asked "why?"
Your organization may be smaller or larger than Rawlings, however you have the same responsibility to your customers as they do to theirs.
Be a coach, not a cop
Sometimes we become cops when we focus more on discipline and punishment than on helping people reach their potential.
Even though difficult people are the minority, they get more than their share of attention. Certain problems are inevitable, but ignoring trouble isn't the way to lead a team either. Be a coach.
First, find out why things have gone wrong.
Address the problem early. Also, consider what irritates you personally. Some things are just annoying and aren't worth addressing, at least not if you want to maintain peace in the company.
Second, solve the most disruptive problems:
- Define all the recurring problems and prioritize them so that the most difficult problems can be handled first.
- Look below the surface; there may be extenuating circumstances.
- Analyze the problem to determine who or what is responsible.
- Tackle the problem; decide how you're going to handle it and do it.
Third, expect misunderstanding and denial when coaching a poor performer.
Be accurate, clear and impartial. Watch for falsely placed blame.
Last, be sure to follow up.
Although you've asked for change, many people tend to fall into old habits. Employees may not always do what's expected, but acknowledge that they're trying. Encourage and reward progress.
Being a cop is a difficult job. It's much more fun to be a coach and help develop winning teams.
Create 'Olympic' performance events
The centennial Olympics offered opportunities for volunteers to experience the event's energy and excitement from opening to closing. One of the volunteers was Gregory P. Smith, internationally recognized consultant and trainer, and president of Chart Your Course International. In an interview with Smith he shared some ideas on why Olympic Performance Events (OPE's) keep organizations and their people excited about work and what they do.
"I wanted to be a part of the whole magic of the Olympics. That experience supported my research in the area of the difference between low and high performance companies. People want to be a part of something greater than themselves. Thousands of people gave 12 to 18 hours each day without pay doing something significant," said Smith. He believes that some businesses are factories where people mentally punch a clock. They feel no more valued or able to contribute than someone working at a minimum-wage job in a high-stress, high-turnover industry.
During our conversation, Smith referred to his book, "The New Leader Bringing Creativity and Innovation to the Workplace," (St. Lucie Press, 1997). In his book he talks about "zest factors," identified by Robert Schaffer in an article in The New York
Times, which create high energy and motivation. They are:
- A clear and compelling goal.
- Success within reasonable grasp.
- A collaborate mode.
- A genuine sense of fun and excitement.
The "zest factors" are behind the success of every organization. Without them businesses often flounder or fail.
The news media didn't have to remind us that when the Olympics were over some people went through withdrawal, even a mild form of depression. According to Smith, it's no different when a woman gives birth or when an athlete finishes a competitive event.
Something significant has ended.
To capitalize on those times of vitality, energy and enthusiasm, businesses should create their own OPE's. Even those done on a small scale can be effective. These OPE's have a bottom-line impact and help people feel energized. No business can create a fun and motivational environment 24 hours each day people would get burned out. "But by creating OPE's in your business throughout the year whereby people look forward to planning and participating, you can't help but maintain high morale," explains Smith.
In addition, as long as the events have a purpose, such as to improve profitability, reduce waste or increase productivity, they are worth the money invested. The big pay-off is employees who are committed to the goals and objectives of their employer.
Modify the nature of the work
To many, repetitive work becomes boring. There are ways however, to add new elements to a job and make it more interesting. For example, rather than have an employee do only one part of a large job, expand the assignment to include the complete project from beginning to end. This varies the job, uses a wider variety of skills, and gives the employee a greater feeling of accomplishment. In addition, increase the employee's responsibility by providing greater autonomy.
Given the trend today to create work teams, assign employees to teams where they will complement other team members. Allow them enough time to adjust to their new roles and build on their strengths. When appropriate, ask for their help in training new employees.
Consider this example: Terry hated his job, or at least that's what he told everyone he worked with everyone except his boss, who didn't see the whole picture when it came to Terry's dissatisfaction. Until recently Terry had seemed comfortable with his assignments. His supervisor didn't realize that Terry was about to explode. When the supervisor finally took time to listen, his employee's negative attitude surprised him. The work bored him in—fact, it had never challenged him—because it was the same old task repeated. Obviously something had to change.
And it did. He and his supervisor decided that he needed more responsibility. The supervisor made Terry a team leader. His attitude improved and, before the year was over, Terry had earned a promotion.
Results like this don't happen overnight. However, by simply changing the nature of an individual's work we could find ourselves with a whole new perspective on our employees.
Can you afford to view employees as disposable assets? The investment of your time and effort to plan and implement ways to improve employee morale can have long-range positive results for both the human and financial factors in your company.
About the author
Carol A. Hacker is an educator, speaker and founder of Carol A. Hacker & Associates, one of the country's foremost skill-building enterprises on human resource management. For more than two decades she's been a significant voice in front-line and corporate human resource management to Fortune 500 companies as well as small businesses. With hands-on experience in managing a wide variety of public, private and non-profit projects, her client list spans North America and Europe.
She's a graduate of the University of Wisconsin, where she earned her B.S. and M.S. with honors. Prior to starting her own firm in January 1989, she held a number of management positions including that of Director of Human Resources for the North American Division of Bahlsen, Inc., a European manufacturer.
Hacker is the author of the highly acclaimed books, "Hiring Top Performers: 350 Great Interview Questions for People Who Need People" (1994), "The Costs of Bad Hiring Decisions & How to Avoid Them" (1996, St. Lucie Press),"The High Cost of Low Morale …and what to do about it" (1997, St. Lucie Press), "Job Hunting in the 21st Century - Exploding the Myths, Exploring the Realities" (1999, St. Lucie Press), "450 Low-Cost, No-Cost Strategies for Recognizing, Rewarding & Retaining Good People" (1999), "366 Surefire Ways to Let Your Employees Know They Count" (2000, InSync Press), and dozens of published articles.
She is a member of the National Speakers Association, and speaks for professional and trade associations, as well as for private corporations and government agencies. Her motivational presentations are practical, positive and entertaining. Her interactive workshops have helped thousands of managers become better leaders.
Hacker is a featured speaker of the value-added MATRIX Executive Seminar entitled, “Keeping Winners: How to Retain Top-Notch People.” She is available to speak at companies, at association meetings or conferences, or to consult with organizations on the topics of selecting and keeping winning employees. She can be reached at
770-410-0517. |