Absorb the Hit
This employee retention speaker and employee retention author has watched the economy go from boom to bust and back again more times than he cares to recall. Amazingly, I see organizations make the same mistake of cutting people from the payroll during slight dips in their business. This is one of the worst employee retention strategies. It is also a lousy business strategy. In the end, the organization pays for it because they are unable to ramp up nearly quickly enough as they need to when things turn around and then they lose orders because they are not able to service their customers. The people they laid off have already moved on to other opportunities and are reluctant to make a move back to their former employer because they know the next time that things slow down they could be the one cut.
It’s time to shift our mindset and build a culture that values employees in the long-term. By absorbing a short-term hit to the bottom line, they will foster a culture where employees feel secure. When that happens, you build loyalty and a committed workforce. Don’t for a minute think this employee retention trainer is doing this out of sheer benovalence! You keep people because, in the long run, it’s good for business.
The reality is that with the shortage of talent we will face over the next decade, an organization’s ability to keep talent for long periods of time will be challenged. Those organizations that are able to do so will have a huge competitive advantage. This is about the bottom line. It is also a shift in mind set that by building the right culture, you build a bottom line that is sustainable in the long haul. In order to do that, organizations are going to have to begin a strategy of absorbing a short-term hit to the bottom line.
This employee retention consultant knows that this thought process may be heresy to those that believe purely in the bottom line. It isn’t. It’s even more bottom-line oriented. It’s just a different way to get to the same goal. We are not back in the 1970’s any longer. It’s a new era that is marked by a shortage of people and people will be the biggest constraint on the ability of an organization to survive and thrive. If you want that to happen, it’s time to rethink how you do business and absorb the hit to the bottom line when things slow a bit.