Companies offer entry-level bonuses and raise wages to get people to work for them. However, it takes more than one-time bonuses and small pay increases to keep employees in your company for the long term. If you want employees to invest in your business, invest in their financial well-being. Here are six strategies to consider.
Become an employee-owned company
Employee-run companies could be the wave of the future. Companies like Publix Supermarkets have been majority-owned by employees for many years. Today, other smaller organizations like Walt Churchill’s Market in Ohio and a group called A Few Cool Hardware Stores (13 Ace Hardware Stores in the Washington DC and Baltimore area) are jumping on the bandwagon. Employee ownership means that the employees own shares in the company, so if the company wins, everyone wins. Traditionally, these companies have seen higher productivity, higher profitability, higher revenues, and better employee retention.
In addition, it helps the employees to take over the success of the company and thereby create their personal financial basis. A recent study by John Zogby Strategies found that people who worked at employee-owned S-Corps fared significantly better financially than those who worked for non-ESOP companies. Perhaps it is time to give your people a more important piece of the pie.
Get religious when it comes to promoting from within
One of the most important ways to make people feel valued is to recognize their potential. Companies that religiously search for undiscovered talents, involve people at all levels in projects and offer mentoring, coaching and development opportunities not only make employees feel valued, but also invest less time and money in recruiting. Make a goal of quickly moving people from low-paid positions to roles with more responsibility and higher paychecks.
Be a great company that you come from
Some companies have high turnover because it’s the nature of the animal. If high school or college students make up the majority of your team, expect them to leave. However, organizations can help themselves and their employees by becoming a company that is known for great learning and development opportunities. In other words, create opportunity for your employees by teaching them so much that other employers will want to hire and promote them based on their longstanding work with you. If you do this, you will also become more attractive as an employer for young professionals, so everyone will benefit!
Get a finance coach
Invest in the future of your employees by hiring a financial wellness coach to work with them. We don’t usually learn money management skills in school and most hourly workers don’t have the resources to hire a financial advisor. They do not necessarily have the wealth-building skills and knowledge that those in power have. Set people apart by providing one-on-one coaching on budgeting, goal setting, investing (beyond your 401,000), and other activities that increase their financial well-being and freedom.
Be transparent about salaries
Companies like Buffer go ahead by making their salaries fully transparent. You can now go to their website and see what each individual employee is doing. While you may not be ready to share these numbers with the public, there are good reasons for salary transparency. By showing people the exact formula you use to calculate salaries, you are making your company accountable and building trust with your employees. For example, using a recipe like Buffer’s is also giving your team a clear path to making more money within your company.
Redistribute resources and pay everyone well
Finally, if you haven’t raised wages just yet, it’s time. The discussion about raising the minimum wage is not gone, and if your company is to be relevant in the future, you need to jump on the bandwagon. While you may or may not want to follow the lead of Dan Price, CEO of Gravity Payments, who cut his own salary to $ 70,000 and raised his employees’ salaries to the same amount, you can probably find the money somewhere. Start by comparing your employee turnover statistics with real dollars. If you look at these numbers alone, it will most likely show that you have the money. You just spend it looking for new people. You might consider flattening your organization, offering commissions, or reevaluating the positions that will add the most to your company’s bottom line. In order to be competitive in this labor market, wages must definitely rise.
When you innovate and contribute to the financial well-being of others, your company’s employees will feel respected, less stressed, and committed to your company’s purpose.
Written by Donna (Bouchard) cutting.
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