“Usually with things, you go where you can find the financing to do it.”
~ Don Bluth
If you’re managing an early stage or growing company, it typically means that you are cash restrained.
And, as a result, you are often unable to pay employees salaries commensurate with what they would earn at larger organizations.
So, how do you manage this and hire and retain the best staff?
In order to do this, you need to understand and manage the four core factors that affect an employee’s satisfaction and thus willingness to join your company and/or stay with you.
The first key factor is financial compensation, which includes the employee’s salary plus benefits such as healthcare, and any significant perks. For the most part, early stage companies can’t compete with larger entities when it comes to these salaries.
However, with stock options and/or profit sharing, smaller companies can better motivate employees and give them the potential to earn even more money then their large organization counterparts should the company succeed.
The second key factor affecting employee satisfaction is lifestyle. Specifically, how does your organization accommodate the employee’s lifestyle? Do you offer daycare? Flexible schedules? For some employees, the ability of the employer to accommodate their lifestyle is of critical importance.
The third key factor that employees consider when assessing whether to stay with a company is how much they enjoy their jobs. Clearly there are millions of workers that hate their jobs. But, for the most part, these aren’t the best workers. If they were, they would have lots of other job opportunities.
It is up to the small business owner to create an environment whereby employees enjoy their work. They must enjoy working with the other members of the company, the types of work they are doing, and their work conditions. They must feel that they are a part of the overall company culture. They must get along with their co-workers, and feel their boss appreciates them and treats all employees equally and fairly. And they must receive adequate communications as to company policies and decision-making.
The final factor with regards to satisfying your employees is to ensure that they are learning and developing skills that will further their careers, whether or not their futures lie with your organization or with another organization (preferably they see advancement opportunities within your organization).
Employees need to be continuously trained and have the ability to continually learn so that they become more valuable assets. This training can be formal, and/or it can include learning from trying new tasks and projects.
It is up to the business owner to ensure that employees are given training and projects that expand and improve their skills.
As an entrepreneur and/or business owner, it is your duty to hire and retain the best staff. Since, no one person has the ability to grow a massive empire with the help of others. In building your teams, consider and constantly revisit these four key factors and make sure you create and foster an environment that gives your firm a competitive advantage in each of these areas. In doing so, you will maximize your chances of building a truly superstar company.
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Today’s Question: Where is the largest gold repository in the world? (hint: not Fort Knox!)
Previous Question: The American journalist Ida Tarbell is known for her expose of the corrupt practices of which giant company? John D. Rockefeller probably hated her!
Answer: Standard Oil.
She was known as one of the leading “muckrakers” of the progressive era, work known in modern times as “investigative journalism.”
She is best-known for her 1904 book The History of the Standard Oil Company, which was listed as No. 5 in a 1999 list by the New York Times of the top 100 works of 20th-century American journalism.
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