Business Education

My Best Employee Plans to Leave in the New Year, What can I Do?

The Great Resignation continues to unfold. At least, that’s what’s it’s been dubbed in the press to describe the phenomenon of a mass departure, largely regarded as due to the global pandemic shutdowns which caused a huge number of workers to rethink their career paths. So, an unprecedented amount of employees are leaving their current (or previous) positions, seeking out other opportunities. Couple this with the impending New Year and it makes for a particularly precarious employment environment. That means it’s quite possible, you’ll find yourself facing the same situation. Fortunately, there are preventative steps you can take to keep your best employee on board.

Biggest Mistakes to Avoid

Obviously, this will stir a number of negative feelings. You’ll likely feel angry, betrayed, baffled, and perhaps sad. These negative emotions cause people to act out in rash, impulsive ways. So, be sure to keep your emotions in check, which is to say in perspective, proportionate to the reality of the situation. If necessary, take a few minutes to step away from everything and allow yourself time to relax and clear your mind.

When your right-hand person or a rising rock star in your business tells you they’re about to leave, it can be an emotional experience, says Rich Reinecke, co-managing partner of business consulting firm Fahrenheit Advisors. ‘It can be very emotional, initially. Sometimes you’re angry. Sometimes you’re scared,’ he says. But what you do next can have serious repercussions for your business. —Fast Company.com

If you don’t act in a rational manner, proportionate to the circumstances, you will come unglued and that’s not helpful to anyone. Instead, keep your composure and act in your own best interest so you don’t hurt your chances of keeping your best employee from leaving. After all, he or she made this decision based on a number of factors and there’s probably a good reason why he or she came to this conclusion.

3 Effective Employee Retention Strategies

If your best employee tells you that he or she is leaving next year, you obviously don’t have much time to change his or her mind. However, that doesn’t mean their exit is inevitable. You might be able to get him or her to stay. Here are a few effective employee retention strategies you can use:

Have a meaningful conversation. Although money usually plays a significant role, more compensation isn’t always the driving force. There are instances when employees make completely lateral moves from one company to another and pay isn’t a factor. Of course, you’ll probably assume he or she will be paid more, but don’t convince yourself that’s the only reason. Take some time to have a one-on-one conversation and listen carefully to what he or she has to say. You might just find out there are other reasons for their decision to go and you can address those issues one by one.
Show your sincere appreciation. Perhaps your right hand is choosing to leave because they feel they have hit a ceiling and are stuck. This is a very common rationalization people use in order to convince themselves to leave their current positions. After you’ve spoken with him or her, be sure to take immediate action to show your appreciation. This can include but isn’t limited to: giving them more say about what’s going on, promoting the individual, or offering a few more persuasive perks.
Increase his or her financial incentive. obviously, money talks. And, if the main reason he or she is considering leaving, simply offer to match their new compensation package. If this strategy isn’t feasible right now, you can always do things like extra paid time off, or incremental, scheduled pay raises, or even offering more benefits.

What other methods would you suggest using to keep a key employee from leaving? Please share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Why Natural Disasters are So Disastrous to Businesses

September 28, 2017 No Comments

While hurricanes Harvey and Irma are gone, Hurricane Maria poses a possible threat. And, that’s a warning because in the aftermath of Hurricane Sandy, there were over 1 million insurance claims processed. The fact of the matter is, there are still businesses in Texas and Florida which are dealing with the devastation left by Hurricane Harvey and Hurricane Irma. Although time has passed, simple supplies remain scarce. This isn’t to unnecessarily frighten you, only to serve as a stark reminder natural disasters are so disastrous to businesses of all kinds. Why Natural Disasters are So Disastrous to Businesses Dealing with a business emergency doesn’t have to be an exercise done on the fly. In fact, it shouldn’t be approached without an effective plan. However, too many businesses simply are not prepared. Statistics show that 94 percent of all small businesses in the U.S. do backup their critical financial information. But, only 4 in 10 backup off-site. From natural disasters like Hurricane Sandy to common theft and hardware malfunctions, small businesses are particularly vulnerable in times of crisis. “Disasters can wipe out a small business in seconds,” said the U.S. Small Business Administration (SBA). Yet small businesses are often the most unprepared for emergencies. —Forbes This one figure is a peek into why so many businesses fail in the wake of natural disasters. Nearly 40 percent of all small businesses never reopen following a natural disaster, according to the Federal Emergency Management Agency or FEMA. That’s not an insignificant figure to ignore. And, it clearly shows businesses are quite susceptible to natural disasters. How to Protect Your Business from Natural Disasters You shouldn’t have to endure more stress and worry than necessary. Your company can make it through a fire, earthquake, tornado, or hurricane. All you need is a plan and to be proactive. This way, you’re fully prepared and know precisely what to do. Here’s a few helpful suggestions for how to protect your business from natural disasters: Back up company records in the cloud. Not only should you routinely backup your company records, including your financials, on-site, but off-site, as well. There are many platforms out there and these provide an invaluable service. Focus on those which cater to business information as those will offer the best fit. Establish clear policies for employee, vendors, and customers. To keep your working relationships in good standing, you’ll need an actionable plan for team members, vendors, and customers. After all, if there’s going to be a delay in paying employees or delivering to your customers, you need a way to deal with such situations. Create a workable continuity plan to follow in the aftermath. Your continuity plan should identify key and essential operations. Basically, what your business can’t do without. You might need to cross-train employees. But, your goal is to put a workable continuity plan into place. Run drills from time to time and strive to make improvements. Even the best plan is useless if it’s never practiced. So, run drills periodically to keep everyone in practice. This will help ensure things run smoothly if the time comes. What’s your business’ plan for a natural disaster? How are you preparing your company to avoid losses? Are there any other precautions you would suggest taking? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

How to (Re)Establish Business Relationships Post Shutdown

June 3, 2020 No Comments

As you reopen your company, people you previously did business with might or might not return with you. Or, it could be the same people, but in different positions, not necessarily having the same latitude and/or resources at their disposal. These individuals, vendors or customers, will most likely continue their relationships, but it will probably be one that’s changed. So, you’ll need to re-establish said relationships and do so in a thoughtful and careful manner. Why Business Relations are Now more Important and Fragile than Ever Of course, whether or not you’re dealing with the same individuals and/or roles Will depend on a number of factors. It’s important to understand and accept the fact that you have no control over these situations. That means you’ll have to make adjustments on your end, in order to make the relationships work. Hopefully, the people you deal with will have some say of their own, but it’s best to hope for the best and plan for the worst. In the early months of 2020, the COVID-19 pandemic prompted wide-sweeping shutdowns and shelter-in-place orders across the United States. Now, as parts of the country look to start relaxing these strict measures, small business owners need to think about what’s next and how they will adapt and move forward safely and sustainably. —U.S. Chamber of Commerce As you reopen, some of the individual vendors and customers you previously worked with might not come back. Also, there’s the inevitability of personnel change among vendors you worked with prior to the shutdown. This means they’ll be some level of give and take, and you’ll need to temper your expectations from time to time until the new relationship takes form. How to (Re)Establish Business Relationships Post Shutdown Going forward, This new and strange dynamic will present its own set of challenges. But, with a bit of patience, tact, and along the way analysis, you can either establish new business relationships or re-establish old ones. Here’s how: Reach out. Obviously, this is where you’ll start. Reach out to those you had the strongest relationships before. Then, to others and go down the list to eventually get to those you only occasionally worked with prior to the shut down. Listen carefully. When you do speak to vendors and customers, make a conscious decision to actively listen. Don’t give into the urge to carry on about your business. Instead, take the time to listen carefully to them and learn about their circumstances. Communicate clearly. By the same token, be honest about your situation, exactly where you stand, and where you expect to be in the near future. In short, under promise and over deliver. Offer Meeting options. Not all clients, customers or partners will feel comfortable meeting in person so offer them options. We have asked our clients; would you prefer to do a video or ZOOM conference or have us meet you in person. Just asking shows you are sensitive to their concerns. Pay on time, every time. Also, be sure not to get too far ahead of yourself so you’re always in a position to pay on time, every time you receive an invoice. Otherwise, you’re opening yourself for trouble. Refer good vendors to others. Another thing you can do is to refer your favorite vendors (and customers) to others to show your appreciation. What other suggestions do you have? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Not Conducting Exit Interviews? Here’s What You’re Missing

August 6, 2021 No Comments

An exit interview is conducted for two principal purposes. The first is to learn about the soon-to-be former employee’s experiences at the company. The second is to determine the reason he or she is leaving. Those are pretty straightforward and can provide valuable insight into how a business operates from an employee’s point of view. This is why large corporations establish these separation procedures. However, even small businesses can take advantage of what exit interviews have to offer. Downsides to Holding Exit Interviews Now, there are of course pros and cons to conducting exit interviews. The first and perhaps most obvious is that a future former employee May be unwilling and/or apprehensive about the possibility of burning bridges. In other words, you might not get the unfettered truth to every answer. Plus, it’s possible the person will go out of his or her way not to offer honest answers. Then, there’s also the possibility he or she will hold back information and that of course can undermine the entire exercise. Exit interviews are conducted to generate feedback from employees with the goal to lower employee turnover rate, raise employee retention, and improves aspects of the organization as a whole. After conducting the interviews and reviewing the data, organizations will use the employees’ suggestions to create a better organization for which their employees want to work and succeed. —Work Institute.com What’s more, if you do get the whole truth, and nothing but the truth, your action on the other side can be very detrimental. After all, the departing employee might provide valuable insight into correcting certain issues or problems within his or her position that could benefit his or her successor and/or, the business as a whole. Failing to apply solutions could result in remaining employees knowing that nothing was done, and that can be quite damaging to morale. 3 Biggest Exit Interview Benefits Obviously, companies conduct interviews as part of their business practices for good reason. And, as mentioned above, even small businesses can reap the same benefits. Here are the biggest advantages of conducting exit interviews: Gain inside perspective. Managers, administrators, and owners are routinely surprised by what they learn through exit interviews. Because they are in charge at the top, they believe they have some sort of omniscient knowledge, but that’s certainly not always true. In fact, this is why third-party HR services offer exit interviews since they understand through experience that the upper echelons of companies aren’t always aware of everything that’s actually going on. Discover unknown issues. Along the same line, it’s not only learning the intricate dynamics or the minutiae of a certain position, but also the problems and issues that affect said position being vacated. It’s not at all unusual for the exit interviewee to reveal certain points of friction or areas of frustration with the position they are leaving. This too is very valuable information and gives the company and opportunity to make key changes. Increase employee retention. One of the main reasons companies conduct exit interviews is to gain knowledge of the benefits listed above in order to enact reforms or policy initiatives that serve the employees better. By doing so, the businesses are able to improve on their operational practices and that can also benefit other areas, such as employee cohesion, morale, and productivity. What other advantages do exit interviews offer? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your input. Interested in learning more about business? Then just visit Waters Business Consulting Group.