Be good to your staff and they’ll be good to you

Peter Switzer

What does your staff turnover say about you and your business? Happy employees mean good customer service and high retention rates.
There are many things that you can do to encourage your employees to achieve the best they can — for their own growth and for that of your business. Here are some tips.

Hire the right person for the job

• Employ the right people and, if necessary, seek help from a recruitment agency.
• Hire sales people who know your clients well, or train them so they do.

Training

• Train management and staff regularly: it is an investment for your business.
• Conduct regular training to teach your business system.
• Don't use half-measures with training. If you can't afford training in the early days, then pass on as much information as you can to your staff. When possible, allocate part of your profits to training.
• Use a staff mentoring system to train new employees. Never leave a new member of staff to fend for themselves.

Empowerment

• Empowering your staff makes them feel they are part of decision making for the business and have a degree of ownership.
• Delegate key management tasks. You can't do everything yourself and the art of delegating is something that needs to be learned.
• Write an Innovation Plan and try to get your staff involved in idea production.

Payment and reward

• You can't expect to retain good staff unless you pay and reward them well.
• Pay for the best people for the best results.
• Provide scope for staff equity to improve loyalty and commitment.
• Give profit incentives to staff. If they think you're making huge profits and not rewarding them sufficiently they'll leave you.
• When it comes to paying your staff, be fully aware of the state award and all its complexities.
• Aim for better dollar-per-hour work practices.

Environment

• Create a “family” atmosphere to reduce staff turnover. Many people are happy working for others as long as they feel valued.
• Incorporate enjoyment in your business. People want to enjoy their work and respond to a positive environment.
• Create a pleasant workplace environment to retain staff — especially mobile, young high fliers. This means having a bright office with lots of light and an atmosphere conducive to enjoyment.

Know your obligations

• Understand the importance of industrial relations and sensible dealings with key unions. You have certain legal responsibilities to your staff and the last thing you want is trouble with unions. Understand your legal obligations in the first place to avoid any conflict. Join an employers group to help you in this area.

Build good relationships

• Integrate your staff cultures for better understanding and productivity. Clearly communicate what you expect from the start and include your goals and objectives in your mission statement. Put internal policies in writing and prominently display them.
• Try new things to keep staff enthusiastic.
• Build a terrific relationship with your staff and lead from the front.
• Emphasise teamwork.
• Like and respect your workforce.
• Build your people around the business, not the reverse.
• Learn about people management skills.

Where to find out more

• Staff hiring checklist
• Managing high performers
• Managing poor performers

 

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More advice

• Read more practical advice on hiring, firing & managing.

 

• Important information
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. All products mentioned on this web page are issued by the Commonwealth Bank of Australia; view our Financial Services Guide (PDF 59kb).