Tuesday, July 31, 2012

Employees as Assets: Three Ways to Increase Your ROI



Employee utilization seems to be one of those over-used business terms that poorly describes one of the most important elements in productivity.  America’s Most Productive Companies know that successful employee utilization is an active ingredient for overall success.
When human capital planning is at the top of a company's priorities, they are sure to achieve their goals despite a potentially lean number of employees.  So, what do the most productive companies mean when they say they have impeccable employee utilization?  To successfully utilize employees, organizations should consider three elements:
  1. Each employee should have a detailed job description
  2. Employee engagement should remain a top priority
  3. Employees should be assigned an amount of work that is manageable based on their personal capabilities
Despite the complexities one might expect, human capital planning tools have made these processes easier to achieve.  Here are 3 simple steps to ensure you are utilizing your team.
1. Detailed job descriptions for all employees
Each employee's job description should be detailed and thorough.  Just because an employee holds a specific title does not always mean that he or she will understand what is expected of them.  Setting clear boundaries for employees allows them to acknowledge their goals and understand what they are expected to accomplish.  Employees should be utilized based on their job descriptions; they will aim to be more productive if they know their limitations.  It is a common occurrence for many employees to end up working on projects that are not part of their job description.  As a manager, make sure that employee’s duties and responsibilities are clearly and effectively communicated to them on a regular basis.
2. Employee engagement is critical
Employee engagement is another major factor when considering how to use an employee to the best of their abilities.  Employees who are disengaged are less likely to achieve their goals and more likely to avoid exceeding expectations, but employees who feel respected and valued will produce double the work that a disengaged employee produces.  Personalized assessments are valuable tools that managers can use to better understand how to increase employee engagement.
Every employee will respond differently to the same motivators, but a good manager recognizes these differences and works with employees to create a productive work environment.
3. Workloads should be manageable (not too much, not too little)
Finally, the amount of work employees are expected to produce is the quintessential element of employee utilization.  Workload capabilities are just as diverse as employees’ engagement levels.  Organizations need to understand that an employee's workload capabilities do not always directly correlate with their intelligence or activity levels.  Each employee can handle a certain number of tasks at a time, but this number will vary greatly throughout all levels of the company.
Strategic human capital management tools can assist organizations with the complexities involved in the employee utilization process.  The results from assessing employees can teach managers about an individual's workload capabilities and engagement levels.
Managers should also consider open communication when trying to encourage that employees work to their full potential.  Weekly one-on-one meetings or an open-door policy will encourage employees to communicate when they are having trouble managing their projects or meeting their goals.
In order to successfully master productivity, companies should administer accurate job descriptions to each employee, keep employees engaged, and adjust each employee's workload so that they never feel tired or burned out. Using employees to their fullest potential will result in higher productivity and a happier workforce.

Monday, July 9, 2012

Learn from JC Penney’s Mistakes: 3 Ways to Reduce Employee Turnover


Learn from JC Penney’s Mistakes: 3 Ways to Reduce Employee Turnover

JC Penney has been making headlines, and not in a positive light. An article from The Washington Post shares the company's latest news. First there was the brand’s makeover “disaster” which resulted in confused customers, angry employees and an 18.9 percent drop in same-store sales. Most recently, the company’s president, Michael Francis, has resigned after eight months.
So what went wrong? How could a company that was once so customer-friendly and family focused fail so badly? Everyone has their theories. In an article from Forbes titled, JC Penney's Misfire: What Went Wrong, a fellow retail industry CEO said, “my feeling is that the company entered into a brand relaunch with the best of intentions; however those intentions were lofty to say the least.”
Who knew that Francis, the former chief marketing officer for Target and a 21-year retail veteran, would be leaving the company after only eight months. JC Penney’s CEO Ron Johnson has decided not to hire a replacement and will assume the responsibilities of overseeing the marketing and merchandising activities.
With the resignation of a president, companies can be faced with unhappy workers and employee turnover. An article from BusinessInsider got the inside scoop from store employees and sales associates about the changes and hardships they’re dealing with. One sales associate even quoted he will be quitting at the end of the month.
Let's learn from JC Penney's mistakes. From what some of the company's employees quoted in BusinessInsider, here are three lessons to reduce employee turnover:
  • Reflect company values. An organization’s mission and beliefs are the heart of the company and should be seen throughout all departments. During JC Penney’s rebranding, the company seemed to stray from this. First, the core messaging strategy was not included in the store’s advertisements and the messages were altered multiple times. Such inconsistency confused both customers and employees. The new campaign also promises a “fair and square” shopping experience; but as a JC Penney sales associate quoted, the recent pay-cuts and fewer hours are certainly not fair and square. The promises you make to your customers should align with the promises you make to your employees!
  • Communicate with ALL employees. Poor communication is another reason why JC Penney is losing employees and customers. During the store’s makeover, the CEO’s message to employees was to “change and adapt.” But change for sales associates creates fear and uncertainty. One shoe sales person said, “Every week is different and it’s hard to see where they are going with some of the changes.” Effective communication is essential. All employees in the company, from C-level executives to frontline salespeople, need to be on the same page.
  • Respect employees. With all the miscommunication, pay-cuts and confusion, some of JC Penney’s employees are feeling undervalued. One employee said that he feels the CEO, Ron Johnson, "cares more about the stakeholders’ interests than the employees." All employees need to be respected for their contributions. Once employees begin to feel devalued, productivity and company morale are in trouble! Don’t let that happen to you. Show your employees you care. Here are four great tips for motivating sales people with recognition and praise.
Has your organization ever been through a change like JC Penney’s? How do you deal with employee turnover?