Employees are now more mobile and motivated than ever, which requires employers to work overtime to attract, keep and satisfy employees - all while labouring to run a profitable business. Business owners intent on trimming turnover should not underestimate the value of training and performance evaluation.
Establishing a work-life balance is in vogue but it often takes more than giving employees more money, flexible work hours, time off - or all three - to keep them around. Particularly for small businesses which can ill afford to lose personnel.
With a more educated workforce, which actively seeks additional skill development opportunities, both training and performance evaluation are key elements in strengthening, and stimulating employees.
Training
Training programs can be similar regardless of the size of the company or the industry. Whether a program is successful or not depends largely on how it is implemented.
Ongoing training programs can be conducted by expert trainers or done online. At the hefty rates of up to $4,000 a day, however, trainers might only be of value if a large portion of employees can participate. The other dilemma for SMEs is seeing business performance suffer if managers and employees are taking time out from their day-to-day responsibilities.
Increasingly popular, particularly with Generation Y and those in technical positions, is online training offered through many educational institutions. It can take as little as two hours a day, a few days a week and can come with a price tag equal to the cost of attending a day-long off-site training course.
Online training is an attractive alternative because employees can participate in the course at their own speed and at a time that is convenient for employers. It's also multi-user and can be repeated, so even if an employee leaves the company after training, the material is appropriate for others.
Performance evaluation
While training indeed plays a vital role, an effective staff evaluation process is just as significant in developing and satisfying employees.
In most workplaces, 6-month and yearly reviews are the standard employee evaluations. These are often a collaboration of manager and employee opinions and typically include a written and oral assessment but in many cases merely scratch the surface.
More thorough employee assessment programs can not only provide a better insight into an employee's ability, performance and motivation but also serve as an excellent way to improve employee satisfaction.
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Employee evaluations should consist of a 360 degree feedback evaluation, include the manager's feedback, and the opinions of co-workers the employee interacts with on a regular basis.
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The appraisal should consist of the standard job performance measured against key performance indicators (KPIs), and also take into account the feedback of anonymous co-workers, who would not normally play a role in the evaluation process. A training plan can then be included in response to the performance feedback as a KPI, and a mid-year review conducted.
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Provide instructions via a training session, including how to provide feedback. Questions, based on core competencies, should be framed in a positive manner to encourage constructive comments.
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Most employees value feedback on their contributions and areas for improvement and in doing so, the evaluation program serves as a development tool, not a disciplinary one.
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Most employees now wear multiple hats which means they are interacting with many more individuals outside their team. Instead of requesting feedback from just your employees, ask your closest customers, suppliers and even outside contractors for their opinions. This will have the added benefit of making them feel a part of your organisation as well.
The bottom-line is that employees will see management, co-workers and other stakeholders are taking an interest in what they do each day. This type of employee engagement establishes a sense of belonging, pride and being an important part of the company culture and encourages employees to go the extra mile.
Ultimately, this translates into employees enjoying their work, boosting their productivity - and increasing the chances they will not soon be another addition to the growing number of employees changing jobs each year.