The way you deal with your employees is the way your employees deal with your clients. If your employees are not shown trust, care and empathy, there is a very slim chance that your clients would ever experience these from your business- your employees. Besides, if a client develops a strong relationship with an employee that leaves your business, the client may leave with that employee to her new business.
- So, essentially, Employee retention = Client retention.
- Employee Acquisition Cost (EAC): You may be aware of the term, Customer Acquisition Cost (CAC). Similarly, there is a cost associated with acquiring your employees, e.g., training and ramp-up cost (ramp-up = time period taken by a new hire to hit full productivity).
- Business Culture: Employee-attrition can affect the morale of your business. Long-time-employees can become so in sync with each other that they can develop a shared process for accomplishing tasks in an efficient manner.
The way you deal with your employees is the way your employees deal with your clients.
Over the past few decades, a new form of management, which takes employee-retention to a whole new level, is finding ground. It’s called self-management. This is the type of management where there is no management, at all. Employees are people, fundamentally. And, they have their families and societies. If they can take responsibilities and achieve tasks for their families and societies, without a manager instructing them, constantly, they are well-capable of doing the same for the companies that they are a part of. This is the premise of self-management.
1) Have you ever heard of The Morning Star? It is the world’s largest tomato processor with 400 full-time employees and over $700 million in annual revenues. And, there are some things, totally, unique about its management style:
• No one has a boss.
• Employees negotiate responsibilities with their peers.
• Everyone can spend the business’s money.
• Each individual is responsible for acquiring the tools needed to do his or her work.
• There are no titles and no promotions.
• Compensation decisions are peer-based.
How does this, even, work? You can read more about it, here.
2) Another self-management system called Holacracy is a system of organizational governance in which authority and decision-making are distributed throughout self-organizing teams rather than being vested in a management hierarchy.
The building blocks of Holacracy’s organizational structure are roles. Holacracy distinguishes between roles and the people who fill them, as one individual can hold multiple roles at any given time.
So, what is your management style? And, how do you retain your employees?