Family-owned businesses typically have less employee turnover than large public corporations because management teams are often made up of family members who aren't going anywhere. Even individual contributors without managerial ambitions tend to stay longer because of the family-like atmosphere.
However, in family businesses, turnover occurs even at the executive level. And when that happens, it can cause a small crisis. When a long-time employee leaves the family business, it can be devastating, especially if they join a competitor. Aside from the obvious business implications, having an employee leave can almost feel like a betrayal, especially if the employee was well-liked and respected. It can lower morale and, if you're not careful, it can also damage your culture. Employees leave their jobs for a variety of reasons, some of which are out of management's control, such as competitively higher pay or greater opportunities for promotion. But in many cases, the reasons why long-time employees leave are completely preventable. Action happens long before employees think to look for greener pastures.
It starts with a commitment to employee engagement.
understanding human capital
Leading the Future of Work, an internationally researched report by talent management firm Talogy, delves into the theme of human capital and explores how inspiring, motivating and engaging people can drive results. It turned out to be the biggest attribute to achieve. The report also found that enabling a positive employee experience is the most important behavior leaders need to exhibit for both a positive employee experience and organizational success.
While the findings were thought-provoking, they weren't necessarily surprising to me, given my decades of experience consulting with family-owned businesses. However, many family businesses never think about these things because they are usually busy running the business. While most large companies understand the nuances of human capital, family businesses have been slow to adapt to an ever-changing world.
Here are some examples of unintentional personnel errors I encountered while working at a family-owned business (names and specific circumstances have been changed to protect the innocent): A talented employee of a family business was looking for a big promotion. — Only she didn't know that, and she quit her company before that happened. This shocked the company, but it wasn't supposed to. They kept dragging out the plan, thinking they would eventually arrive at it. And they never communicated that plan to their employees. Proactive communication and employee engagement could have prevented this.
This is the lesson. Consistent employee engagement helps companies satisfy and retain employees and helps determine if it's the right person for the right job. Employee engagement influences how committed employees are to someone or something within an organization, how hard they work, and how long they stay with the company because of that commitment. .
Improving employee engagement
The first step to successful employee engagement is to engage with your employees yourself. To inspire, motivate, and engage others, you must first understand what drives and motivates you as a leader. Take a good look in the mirror and put yourself in an emotional space where you understand yourself. This will help you understand your team.
After reflecting, start telling people. Learn what motivates them. Maybe it's competition or rewards. Maybe it's a wonderful culture. Perhaps it's a clear path to career advancement. Everyone is different, but once you understand how your employees feel, you can begin to build your company's environment and processes around what motivates them.
There are also some functional aspects that every company should implement.
- Set expectations. Don't isolate your employees. If you want results, be clear about the expectations you have for them, both individually and collectively. Based on these ideas, employees will work towards realizing these goals. You'll also feel empowered by having clear goals.
- Provide a growth plan. Employees want to know that their efforts will be rewarded. All employees, especially those who are promoted quickly, should have a clear path to advancement. This allows you to keep working towards reaching the next level and improving your business at the same time.
- embrace change: Many family businesses are lagging behind changes in the world around them. By embracing change and listening to new ideas, you can show your employees that your business is built for the future, including their future.
Investing in your employees' personal growth and goals has a positive impact on your company's bottom line. And if you can improve the skills of your employees to suit your company's needs, it can be invaluable. The time and money spent on changing culture and processes will be well spent. This has immense benefits: increased employee engagement, long-term commitment, and increased revenue.
