Compensation and Benefits For Employees

Compensation and Benefits

 

Compensation and benefits refer to the benefits a firm provides to its employees in exchange for their labor. The compensation and benefits processes belong to most important HR Processes, which are critical for the organization and modern HR organization. The organization with effective compensation and benefits drives its personnel costs, manages the performance of employees and rewards the extraordinary performance.

 

Role of Compensation and Benefits in Human Resource Management

The compensation and benefits processes introduce the transparency into Human Resources and rewarding employees for the achieved performance. The compensation and benefits provides the managers with the compensation tools to build a difference among employees as the high performance corporate culture can be built in the organization. The compensation and benefits department monitors the external job market and optimizes the personnel expenses budget of the organization. The compensation and benefits defines the compensation strategy, sets the transparent and simple compensation policy and defines the general rules for the extraordinary payments, bonus schemes applied in the organization and introduces general other compensation policies like the Relocation Policy, Short-Term Assignment Policies, Benefit Car Policies and other.

When a person receive a job offer, the first thing he or she look at is the salary. Whether the recruiter lists the wage as an hourly, weekly, monthly, or hourly rate, candidates see it as the most critical part of any job offer. Typically, when employees think about compensation, the salary is what they think of. But, for many employees (especially senior employees) compensation is far more than just the regular paycheck. Benefits cover indirect pay. This can be health insurance, stock options, or any myriad of things offered to employees. All of these things are critical in any job offer. Two jobs that offer identical salaries may vary wildly in the benefits category, making one a better financial proposition than the other.

First, people won’t work for the company without pay. And unless the organization is a non-profit organization, it’s illegal to ask them to work for for free. There is a social contract between the employer and employee, where the employee puts in the work and the employer rewards this. Compensation and benefits are an important part of that equation.

 

Compensation & benefits and Employee Motivation

 

Researchers found that a 10 percent increase in base pay resulted in a 1.5 percent increase in the chance that the employee would stay at the company for their next role, rather than moving on. While their findings were statistically significant and turnover is expensive, it’s probably not enough to convince a boss to give someone a 10 percent raise. Salary is clearly important, but there are some things more important other than money.

 

Compensation can be divided in to 02 main categories considering following factors,

 

Direct compensation. This consists of:

1. Salary. This is the base and variable pay for work.

2. Rewards. Other monetary benefits from working at the company, including health care, retirement pay, and allowances.

 

Indirect compensation. This consists of:

1. Work-life balance. A good work-life balance is crucial for a happy career.

2. Recognition. Recognition by colleagues and supervisors, as well as external recognition for your job.

3. Development & career. Training and development, mentor programs, talent (mobility) programs.

 

If the Management only look at compensation when determining what makes employees happy, They will not get the full picture. Total rewards look at how all aspects of an employee’s work-life impact their satisfaction. As established above, pay and benefits are not the only things that make employees happy. Management practices have significant impacts on employee happiness and profitability and even reduced workplace accidents. Ignoring the culture part of an employees’ total rewards can reduce company performance and increase turnover.

 

Main Compensation Goals 

The compensation strategy has to set the main compensation goals of the organization and they have to be kept as the main target for Human Resources to be achieved. The compensation goals have to be set in accordance with the business strategy and they have to visible in the HR Strategy. The top management and Human Resources have to decide, what the goals are of the compensation schemes in the organization. The compensation goals should be aligned with the corporate culture and the general long-term expectations of the employees, when the organization does not implement a huge change in the corporate culture.

Main compensation goal is about the role of the compensation in the organization. Each organization pay salaries, but the role of the compensation has to be balanced with the other aspects of the overall motivation scheme applied in the organization. The organization has to choose to pay higher salaries and o􀃠er less development or career opportunities or it can offer lower salaries and better career opportunities to keep the motivation system balanced.

 

 

Types of Compensation & Benefits 

·         Overtime pay

·         Bonuses and commissions (discretionary and non-discretionary)

·         Retirement (defined benefit and defined contribution plans)

·         Stock options

·         Restricted stock

·         Vacation

·         Profit-sharing

·         Merit pay

·         Sign-on bonuses

·         Relocation bonuses

·         Housing, school, and meal reimbursement

·         Healthcare benefits (medical, dental, vision, etc.)

 

Salespeople, for instance, will need a commission plan that details what their commission is, and under what circumstances they receive it (is it when the paperwork for the sale is signed or is it when the customer pays?). Profit-sharing plans need to define what constitutes a profit, and when such, the company pays the bonuses.

Compensation in Human Resources  is a part of the complex HR processes, policies and procedures. The top management and Human Resources have to decide, what will be the primary role of compensation in the organization. Some organizations prefer the supplementary role of the compensation and other organizations prefer the dominant role of the compensation. This compensation decision is extremely important as it sets the general framework for the compensation components, if they will exist in the organization or they will be the part of the other HR policy.

 

References

 

Managementhelp.org. (2020). Employee Benefits And Compensation (Employee Pay). [online] Available at: https://managementhelp.org/payandbenefits/index.htm

[Accessed 10 July 2020].

 

HRM Handbook. (2020). Compensation And Benefits - HRM Handbook. [online] Available at: https://hrmhandbook.com/hrp/compben/amp/

 [Accessed 10 July 2020].

 

AIHR Digital. (2020). A Full Guide To Compensation And Benefits | AIHR Digital. [online] Available at: https://www.digitalhrtech.com/compensation-and-benefits/amp/

 [Accessed 10 July 2020].

 

Improving The Relationship Between The Manager And Employees.

 

There are a wide array of factors that influence an employee joining an organization, including the employer brand, nature of work, role and responsibilities, leadership career growth, job security, and infrastructure. However, one critical factor that should be taken in to account is ‘managers and their relationship with employees’. While managers and employees are better off as colleagues than friends, it’s still important to develop strong relationships between the two sides.

For the organization to perform better it is important that the employees are comfortable with each other, share a good rapport and work in close coordination towards a common objective. People feel responsible and motivated to do good work and enjoy their work rather than taking it as a burden. Having a bad manager can be extremely stressful for employees and can negatively affect their overall well-being. On the other hand, good managers can dramatically improve employees’ well-being and performance by providing them a secure environment where they feel motivated and comfortable. Today’s employees want to find a sense of understanding, belonging, and well-being at work—and managers are positioned to help establish that sense of belonging through robust communication, live contact, visibility, and strong relationships. It is important that the management promotes healthy employee relations at workplace to extract the best out of each individual. Competition is essential but it should not promote negativity or any kind of enmity among the employees.

So, what can HR professionals do in order to help stop the perceptions that bosses are hurting employee careers and promote a more positive interaction? What can you do to improve manager relationships with employees?

 

• Direct Involvement with employees: Every employee needs to have a direct relationship with a manager, someone who can address their questions and concerns and someone who can recognize them for a job well done. HR leaders can educate managers to understand that their interactions with an employee can have a major impact on that employee’s feelings of well-being.

• Recognize and value individual’s work: Part of a successful employer-employee relationship is regular recognition and explanation of the employee’s role. By communicating the value of an employee’s work, managers help that employee better understand where the work he or she does fits into the big picture. When employees understand the impact their efforts have on business success, it helps them develop a sense of ownership in the company’s mission.

• Set an example: Team members look to their managers to determine the best ways to communicate with them. Effective leaders set the example for how best to communicate with those who directly report to them, conduct reports, and deliver recognition.

• Remain extremely accessible: As growing numbers of employees work virtually and remotely, in far-flung offices, or in large enterprises, it’s easy for them to feel disconnected from company leadership. It has been observed that poor communication leads to confusions and misunderstandings. The communication has to be precise and relevant. One should not play with words and be very specific about his expectations from his fellow workers as well as the organization. If the manager is not very happy with his colleague’s proposal, he should not keep things to himself. He should voice the opinion and do express his displeasure. It will definitely prevent a conflict among employees later and improve the relations among them. Be straightforward. Effective leaders must make an extra effort to be extremely accessible. That accessibility may look different for each leader, but it could include instant messaging, weekly team meetings, or a regular drop-in at each employee’s workspace.
  
  
• Establish positive working relationship: From the day they start at your organization, new hires need a positive working relationship with a friendly, caring manager. From day one, the ground-level manager can set the pace for a new hire’s success better than anyone else in the business.

• Morning meeting is another effective way to improve the relation among the employees. Let everyone come together on a common platform and discuss whatever issues they have. The meetings must not be too formal. Allow the team members to bring their cups of coffee. Manager should start the day with a positive mind and greet everyone with a warm smile. Exchange greetings and compliments. If any of the team member is not in a pleasant mood, do take the initiative and ask what is wrong with him. Manager should try his best to to provide him a solution.

• Leveraging on technology and digital experiences to enhance connectivity: In this technology-rich age, there are multiple ways to stay in touch with employees. Managers can use tools such as instant messaging, video conferencing, and mobile collaboration apps to stay connected.

 

Various researches have shown that, when managers and leaders take these steps, employees become more deeply engaged in their work. Organizations should also proactively encourage their managers to develop great working relationships with their employees and should make provisions for requisite training programs. By focusing on their development plans and coaching skills, organizations can groom their managers to forge a strong relationship with employees. When leaders nurture and invest in their employees, the return on investment will benefit in ways that money cannot buy; engaged employees are not only more likely to stick around for the long term, they’re also more likely to be more productive and effective.

References

US | Glassdoor for Employers.( 2020). Strategies To Improve Manager And Employee Relationships. Strategies To Improve Manager And Employee Relationships. [online] Available at: https://www.glassdoor.com/employers/blog/5-ways-hr-can-boost-recruiting-by-improving-employeeboss-relations/

[Accessed 10 July 2020].

 

Peoplemattersglobal.com. (2020). People Matters - Interstitial Site - People Matters. [online] Available at: https://www.peoplemattersglobal.com/article/leadership/6-ways-to-strengthen-employee-manager-relationship-16178

[Accessed 10 July 2020].

 

Managementstudyguide.com. (2020). Strategies To Improve Employee Relations. [online] Available at: https://www.managementstudyguide.com/strategies-to-improve-employee-relations.htm

[Accessed 10 July 2020].

Equal Employment Opportunity

What Is Equal Employment Opportunity?

Equal employment opportunity is the idea that everyone should be treated fairly when they’re considered for various employment decisions (including hiring, promotion, termination, compensation, etc.). This means, for example, that anyone competing for a position at a company should have the same chances of succeeding if they’re right for the job. It is illegal for employers to discriminate against an applicant or employee on the basis of:

• Race
• Age
• Color
• Sex
• Religion
• National origin

Equal Employment Opportunity (EEO) doesn’t guarantee that people of underrepresented groups will get hired. The purpose of EEO regulations is to make sure nobody will face rejection or difficulties because they’re in a protected group.

For example, under several EEO laws, recruiters cannot reject a candidate simply because they’re Jewish or Christian, African or Caucasian, or because they’re pregnant. Similarly, also they cannot advertise jobs asking for candidates of a certain age, and  cannot promote men over women – recruiters can only base this decision on each person’s proven capabilities, performance and other objective criteria, rather than biases against protected groups.

 

Bona fide occupational qualification

Equal employment opportunity that concerns protected characteristics does have some exceptions. These exceptions of the EEO definition are bona fide qualifications (or “genuine occupational qualifications” in the UK) for a specific job. The nature of certain jobs may allow you to make an employment decision based on one of the protected characteristics.

For example, if a film producer is hiring for an actor to play a teenager, he can hire a person more closely to the age of the film character, rather than a middle-aged actor. Or, if a company makes clothes for men, it can advertise for male models. Another example is when a religious organization of a certain faith hires only candidates who share that faith if their job is related to it (for instance, when they are members of the clergy.)

 

EEO Globally

Globalization has affected the area of EEO in terms of formal applicability of one country's EEO laws to persons working in another country and in terms of expectations about the extent to which equal employment opportunity should be a societal or organizational norm.

In some instances, for example, discrimination is prohibited against the citizens of the native country but explicitly permitted when it comes to immigrants, especially illegal immigrants. There is currently debate in the U.S. as to what rights immigrants—both legal and illegal—should have in terms of EEO. The right to work in a foreign country is subject to that country's immigration laws, which vary widely from country to country.

 

Why Should Employers Care About Equal Employment Opportunities?

Employers who promote EEO attract more diverse workers, improve worker productivity and promote a healthy workplace culture.

Furthermore, employers can minimize liability in the event of a complaint from an employee. Employers are usually held responsible for any discrimination, harassment and bullying of employees by others in the company. However, if employers can show that they took reasonable steps to minimize the issue, they may not be held liable. Employees on the other hand get their ‘Work Place Rights’ under an EEO Policy.

Therefore, EEO policies can set out a transparent and fair process for complaints to be managed and resolved.

 

What is a workplace right? 

An employer is prohibited from taking adverse action against a person as a result of a person’s workplace right, the exercise or non-exercise of that right, or the person’s proposal to exercise or not exercise a workplace right in the future.

A person has a 'workplace right' if they: 

• are entitled to the benefit, or have a role or responsibility under a workplace law, workplace instrument or order of an industrial body (for example, an entitlement or benefit such as personal leave);
• are able to initiate, or participate in, a process or proceeding under a workplace law or instrument (for example, the participation in protected industrial action); or
• are able to make a complaint under a workplace law to seek compliance with that law or an industrial instrument (for example, an application to the Fair Work Commission for the initiation of unfair dismissal proceedings, or a complaint to the Fair Work Ombudsman).

 

An Equal Employment Opportunity policy can help promote diversity and minimize discrimination, harassment and bullying in the workplace. Also EEO will motivate the employees to do their job well since they are satisfied about their job. Ultimately EEO will be mutually beneficial for both Employer and the employee.

 

References

Legal Vision. (2020). What Is Equal Employment Opportunity (EEO)? | Legalvision. [online] Available at: https://legalvision.com.au/equal-employment-opportunity-eeo/

[Accessed 05 July 2020].

Hradvance.com.au. (2020). Equal Employment Opportunity (EEO) Summary. [online] Available at: https://hradvance.com.au/information/eeo-summary

[Accessed 05 July 2020].

Recruiting Resources. ( 2020). What Is Equal Employment Opportunity (EEO)? [Definition And More]. [online] Available at: https://resources.workable.com/hr-terms/what-is-eeo

[Accessed 05 July 2020].

Study.com. (2020). What Is Equal Employment Opportunity? - Definition, Laws & Policies. [online] Available at: https://study.com/academy/lesson/what-is-equal-employment-opportunity-definition-laws-policies.html

[Accessed 05 July 2020].

Training and Development towards organizational success

Training and Development

Employee training and development implies a program in which specific knowledge, skills and abilities are imparted to the employees, with the aim of raising their performance level, in their existing roles, as well as providing them learning opportunities, to further their growth.

When an employee joins the organization, he/she is given job-related training to ensure satisfactory performance of the tasks and duties assigned, so that the employee can contribute more to the organization.

On the other hand, development has a long-term view. It is all about preparing the employee for the current as well as future jobs, by providing them with learning opportunities to increase their capacities, to undertake more challenging and complex tasks.

Different training is given to employees at different levels. The following training methods are used for the training of skilled workers and operators-  Specific job training programs, Technical training at a training with live demos, Internship training, Training via the process of rotation of job.

Training given to people in a supervisory or managerial capacity is – Lectures, Group Discussions, Case studies, Role-playing, Conferences etc.

People in managerial programs are given this type of training- Management Games to develop decision making, Programs to identify potential executives, Sensitivity training to understand and influence employee behavior, Simulation and role-playing, Programs for improving communication, human relations and managerial skills.

 

Training and Development Process

In the present day knowledge based environment, things are changing at a very fast pace. Even to maintain its position, an organization has to do a lot as well as act very fast. Organization achieves strategic advantages only due to its core competencies and core competence is developed only by the employees of the organization. Hence for achieving a level of excellence, organizations are to invest in

Training and development process is an organizational activity aimed at improving the performance of the individuals and groups of employees in the organizational settings. It is an organized activity for increasing the knowledge and skills of the employees. It involves systematic procedures for transferring technical and management skills to the employees. Training process is an important activity both for the organization as well as for the employees. Skills acquired by the employees through training are assets for the organization. The enhancement of the skills also provides the employees job security as well as opportunities for career advancement.

In the modern industrial environment, where technological development is outpacing all other things, there is a continuous need for systematic training and development of the employees. Through ‘training’ employees are taught specific skills while through ‘development’ employee’s personality and management skills are enhanced. The training in an organization is necessary since there are:

• Advancement in technologies
• Demanding customers
• Thrusts for boosting productivity
• Requirements for improving the motivation levels
• Needs for improving the quality of output
• Necessities for effectiveness in management.

Training is a continuous process and it should not stop at any stage. The management should ensure that a training program should attempt to bring about positive changes in the knowledge, skills, and attitudes of the employees. The Benefits of a training program are as follows.

 

Benefits of Training

 

1.     Training improves the quantity and quality of the workforce. It increases the skills and knowledge base of the employees.

2.     It improves upon the time and money required to reach the company’s goals. For e.g. trained salesmen achieve and exceed their targets faster than inexperienced and untrained salesmen.

3.     Training helps to identify the highly skilled and talented employees and the company can give them tasks of higher responsibilities.

4.     Trained employees are highly efficient in comparison to untrained ones.

5.     Reduces the need to constantly supervise and overlook the employees.

6.     Improves job satisfaction and thus boosts morale.

 

Benefits of Development

 

1.     Exposes executives to the latest techniques and trends in their professional fields.

2.     Ensures that the company has an adequate number of managers with knowledge and skill at any given point.

3.     Helps in the long-term growth and survival of the company.

4.     Creates an effective team of managers who can handle the company issues without fail.

5.     Ensures that the employees utilize their managerial and leadership skills in particular to the fullest.

 

The benefits to the employees are as follows.

• Increase of the confidence level
• Learning of new skills
• Helps in career advancement and higher earnings.
• Developing resilience to change
• Improving safety at the workplace
• Helping in teamwork and hence improving interpersonal relationship

 

High-impact training and development programs don’t just happen. Instead, they’re the result of a careful planning and alignment process. The following steps can help you translate business objectives into a tailored training plan.

1. Identify Business Impact:

Design and develop your training to meet the company’s overall goals. Keeping business goals in focus ensures training and development makes a measurable impact.

2. Analyze Skill Gaps:

How are your employees’ behaviors helping meet the business goal? By finding out what the gaps are between employees’ current and ideal skills, you can better pinpoint what your specific learning objectives should be. Categorize these learning objectives into these three groups, and have activities in your training plan that target all three.

• Motivation: How can you help learners understand why they need to change their behaviors? By working with employee motivations–for example, pinpointing a purpose–you’re more likely to change behavior over the long term.
• Skills Mastery: What do your learners need to be able to do the job? These behaviors will have the most impact on performance.
• Critical Thinking: What must your learners know to perform their jobs well? Distinguish critical knowledge from nice-to-know information to identify what content should be in the course, and what should be in optional resources.

3. Layer Training Methods:

The most effective training programs use layered, sustainable learning activities to create performance improvement over time. A layered approach makes sure your program targets the essential employee, customer, and business needs while training the right people at the right time in the right way. A layered approach is the best of all worlds because it blends learning experiences and training methods that maximize the benefits of your time.

4. Evaluate Effectiveness and Sustain Gains:

Employees’ need for training and support don’t end when they get back to work. In fact, continued support is required to ensure that initial training sticks. Measurable learning objectives are the foundation for you to evaluate an initiative’s impact.

 

References

ispatguru.com. (2014). Training and Development Process. Training And Development Process – Ispatguru. [online] Available at: https://www.ispatguru.com/training-and-development-process-2/

[Accessed 4 July 2020].

talentlyft.com (2020). Recruiting and Hiring Resources. What Is Training And Development?. [online] Available at: https://www.talentlyft.com/en/resources/what-is-training-and-development

[Accessed 4 July 2020].

allencomm.com (2020).  What Is Employee Training & Development?. What Is Employee Training & Development? | Allencomm. [online] Available at: https://www.allencomm.com/what-is-employee-training-development/

[Accessed 4 July 2020].

toppr.com 2020. Human Resource Management. Training And Development: Training Methods, Benefits Of Training. [online] Available at: https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-management/training-and-development/

[Accessed 4 July 2020].

Employee Absenteeism and Turnover in the Workplace

Employers must consider the employees are their business. They greet and serve the customers, they open and close the store, they handle the money, and they work alongside the management of the company, daily. Each night, they leave, and each morning, the management of the company hopes they come back to work. In any company, employee turnover and absenteeism have the potential of becoming a significant and costly issue. For that reason, it’s important to have a solid attendance policy in place.

What is Absenteeism?

Absenteeism is a pattern or habit of an employee missing work, often for no good reason.

What is Turnover?

Turnover is the number or percentage of an employer's workforce that must be replaced due to the voluntary and involuntary separation of employees from employment. Voluntary turnover includes leaving employment to retire, illness, returning to school and better career opportunities, while involuntary turnover includes layoffs and terminations for poor performance or disciplinary problems.

 

Impact of Employee Absenteeism and Turnover to the Company

A high degree of absenteeism and turnover can cause serious problems for businesses. Absenteeism hurts productivity and costs money. For example, a company is currently suffering a high degree of absenteeism in its production department. Employees on the assembly line are often absent. The production employees must operate complex machinery that requires training, so temp employees don't have the requisite skills to pick up the slack for absent operators. Thus, production decreases with each absent employee. This costs the company money. Moreover, most of the absences are paid leave, which means even though production is down, labor costs remain the same

Turnover is even a more serious problem for the company. Not only can turnover cause productivity problems, but it results in the loss of human resources that may not be easily replaced. For example, some of the company's best and most innovative engineers and researchers have voluntarily separated from service to pursue other opportunities. Loss of these employees not only hurts productivity but weakens the company strategically because of the specialized skills and creativity that the employees brought with them. Even if the company can find the same quality of workers, the search, training and time involved costs serious cash.

 

The Causes of Employee Absenteeism and High Turnover

Low wages: The prospect of getting higher pay elsewhere is one of the most obvious contributors to turnover. Every industry has organizations that pay well and some that pay low. Employees might stay a little longer in times of recession because no other work is available, but they know they’re being exploited and will be looking for a way out.

Work environment: Turnover tends to be higher in environments where employees feel they are taken advantage of, where they feel undervalued or ignored, and where they feel helpless or unimportant. Clearly, if managers are impersonal, arbitrary, and demanding, there is greater risk of alienation and turnover.

Management policies: Management policies can also affect the environment which can lead to high turnover as well. In a way such as whether employee benefits and incentives appear generous or stingy, or whether the company is responsive to employees’ needs and wants. Management’s handling of major corporate events such as mergers or layoffs is also an important influence on the work environment afterwards.

Weak team leadership: Even if someone has been trained to do a specific job, they are usually working as part of team. They are alongside people with complementary roles, who together deliver a process or solution. If team lack strong leadership they will not function well, which will lead to disagreements and relationship breakdown.

Poor training: Asking employees often to do a job but not giving them adequate training will in fact demotivate the employees and hence allow them to leave the company.

Work stress: Work stress experienced at particular types of jobs can also create turnover.

Seasonal changes: seasonal changes such as the beginning of a school year can cause high turnover when part-timer, school-age employees return to their classrooms.

Demographically specific: Some turnover is demographically specific, particularly for women who are balancing significant work and family duties at the same time. Such women (or men) may choose to leave a company instead of sacrificing their other interests and responsibilities in order to make the job work out. These factors translate into higher turnover rates for women in many companies.

Inequitable evaluation: while preparing the performance appraisal of an employee, some managers will unfairly evaluate the employees’ performance which in fact de-motivate them and hence lead to high turnover rate.

Strained communications between management and employee: When a lack of communication exists in the organizational setting it has the potential to cause significant problems between management and employees.

 

How to improve employee retention with the company?

1. Create flexible working hours.

There’s currently a lot of chatter about Millennial and how to manage them. More than two-thirds of all service-industry employees are under 35 years old, and three out 10 are between ages 19 and 26. Often, they’re students balancing inconsistent study schedules, or people working multiple jobs. Millennial value flexibility and being flexible to your employees’ personal obligations when building a schedule will greatly improve their satisfaction. Better yet, provide them with the ability to give input into their start and end times.

2. Be consistent.

Last-minute changes can make income and life unpredictable for workers, and is now getting attention from politicians in states like Oregon and New York. Creating consistent weekly schedules weeks in advance is a big win if you’re looking to improve employee retention. Look for a software provider that enables you to create reusable scheduling templates, informs your employees of their schedules weeks in advance, and allows them to submit requests for time off or trade a shift with a colleague.

3. Offer training.

Professional development is a powerful way of keeping employees happy and productive. Can you offer your employees training in some new skills? Can they work in another department one day a week, or move over entirely to see a new part of the business? Is there a relevant seminar or class they want to take that might also improve their work? Think outside the box, and you’ll watch your employees’ contentment and productivity rise.

4. Incentivize results.

Even when times are busy (always), don’t forget to reward your star performers. Results that go unnoticed can be deflating to employees and can give them a reason to start looking elsewhere. Look at ways to keep track of employees who consistently perform. For example, acknowledge their on-time arrivals (some software solutions can track this automatically), and reward them with a small token of appreciation. Your employees will appreciate the recognition and feel inspired to continue their efforts.

5. Communicate.

Last, but definitely not least, communication is fundamental to any relationship, and it’s particularly important in the workplace. Some messages need to be communicated verbally and in person, like feedback on how an employee is doing at his or her job. Other messages can be delivered electronically. For instance, most small businesses still handle time-off or shift trade requests on paper or verbally, and these can easily get lost or forgotten. Putting systems in place that improve the ability to quickly and clearly communicate with employees can have a huge impact on employees’ output.

Reducing employee turnover should be a goal for all grocery store owners and managers. If you follow these suggestions, your employees will want to remain with you, and you’ll be glad they did.

References

Waldmann, J., (2017). 5 Tips To Reduce Employee Turnover & Absenteeism. [online] Progressive Grocer. Available at: https://progressivegrocer.com/5-tips-reduce-employee-turnover-absenteeism

[Accessed 4 July 2020].

Ukessays.com. (2020). Causes Of Absenteeism And High Turnover Of Staff. [online] Available at: https://www.ukessays.com/essays/management/identify-the-causes-of-absenteeism-and-high-turnover-staff-management-essay.php

[Accessed 04 July 2020].