Most 5 star CPA Google reviews in Canada
Helping Canadian businesses beat the odds!
In order to help business owners minimize the impact of losing employees in their business, Edmonton business consultant says there are several things that entrepreneurs should keep in mind when they are attracting employees in their business. The first thing they should understand, is that the cost of losing an employee is because a business owner has to recruit a new staff member and train them. Those transition costs can add up and so business owners typically understand that it is more cost effective to keep their employees than it is to constantly recruit new ones.
However, Edmonton business consultant says that it is very important that entrepreneurs need to understand that keeping employees that not great fit for the business is actually more expensive than losing them. This is explained very well by Jim Collins, who is the author of six business books who says ìletting the wrong people hang around is unfair to the right people, as they inevitably find themselves compensating for the inadequacies of the wrong people. Worse, it can drive away the best people. Strong performers are intrinsically motivated by performance, and when they see their efforts impeded by carrying extra weight, they eventually become frustratedî. Because of this, entrepreneurs need to work extra hard at ensuring that they are attracting only the best employees they can to their business.
One of the ways that Edmonton business consultant says that entrepreneurs can ensure that there attracting the best employees is by always be recruiting staff members. Many entrepreneurs do not understand the concept, and stop looking for staff members when they have a full complement of people in their business. However, if business owners keep in mind that their staff members are going to leave them, no matter how good they are, and how positive the relationship is, things are always going to happen and employees can end up leaving. For example if employees win the lottery or if their spouse gets transferred out of country, the employee is going to leave, in the business owner is going to have to replace them.
By not taking it personally, business owners can be prepared to always be looking for the right people and minimizing that transition period between one employee leaving and another employee being trained up. Business owners can work to ensure that they have the right people, and they are properly motivated, and that when all else fails, they will be able to replace them easily.
Business owners who hire employees in their business, tend to take it extremely personally when they start to lose employees says Edmonton business consultant. They can doubt themselves, doubt their vision and even doubt their business. Instead of doubting themselves, entrepreneurs need to understand that attrition is a normal part of business ownership, and rather than taking it personally, they need to take steps to ensure that the transition between losing one employee to hiring another is minimized.
In order to minimize this transition, a great rule of thumb according to Edmonton business consultant is for entrepreneurs to always have two people trained up to do any role in the business. This way, in case one employee leaves, a business owner has another person who can take over that role until a second person is trained up, and they get a new employee hired. Minimizing the cost and the effect of transition on a business is of the utmost importance, especially because business owners are never in control of if there staff leave.
Something else that entrepreneurs need to understand when they are attracting new employees in their business, is that it is a good thing to be communicating their corporate values as early in the employer and employee relationship as the interview process. succinctly stating who the business is and what they stand for is a great way to ensure that the right people are attracted to the business. Much in the same way that people are driven to work for nonprofits as well as volunteer for charitable organizations. They are attracted, because they believe in the mission of the organization.
Once entrepreneurs get into the habit of regularly looking for new employees, they should do what they can to ensure that they are doing the right things in order to increase the retention rate of their employees, all while ensuring what they are doing does not encourage the wrong employees to stick around longer than they should. Because of this, business owners should get used to the fact that employee transition is going to be a way of life for their business.
By understanding that business owners should not take it personally when staff leave, and by ensuring that they are doing what they can to attract the right employees, business owners can be confidence that they are doing all of the right things in their business. While losing employees can be expensive to a business, because an entrepreneur has to recruit the new employee as well as training them, it is even more expensive to keep the wrong employees in their business than it is to lose them. Edmonton business consultant says that business owners need to be very realistic when they are operating their business, that losing staff is an normal part of business, and if there prepared, they can minimize its effect on their company.
