July 2007 Newsletter

In this issue: 

  • Thirty five million reasons to prepare for the upcoming workforce crisis
  • Technical Corner:  Workforce Analysis Profile...the tool that measures employee engagement levels
  • Sales Tip of the Month:  Pinpointing your strengths to boost sales and loyalty

 

Thiry five million reasons to prepare for the upcoming workforce crisis 

       

Before long, the worldwide demand for labor will outstrip supply by 35 million jobs according to research conducted by Profiles International, The Concours Group, Harris Interactive and AgeWave.

 

The imbalance will drain $3.5 trillion in annual output from the global economy, they said in reporting research results and called the situation a "workforce crisis."  (Their findings will become the subject of a book by the same title.)

 

Further, they said that the workforce crisis is being driven into a "perfect storm" of catastrophic proportions by...

  • A significant drop in the growth rate of the labor force,
  • The impending retirement of Baby Boomers, and
  • A continuing paradigm shift from physical labor to a knowledge-worker  economy.

As a result--and before long--companies will face stiff competition for top performers.

 

How in the world can you effectively compete for top talent in this climate?  It's not as tough as you might think.

 

The secret to effectively competing for top talent lies in keeping employees engaged.  Mounting evidence suggests that the more engaged employees are in what they do, the more likely they will stay on the job and with a company.  In other words, engaging your workers reduces turnover and the need to compete for top talent.

 

As an added bonus, engaged workers perform better.  They are more energetic, enthusiastic, and full of ideas, performing far above minimum work standards.  Experts say this employee engagement and productivity impacts the bottom line.  Indeed, research shows that companies with a high percentage of engaged employees enjoy:

  • Higher customer loyalty (86 percent higher).
  • Increased productivity.
  • Higher profitability (44 percent higher).
  • Better safety records.
  • A 27 percent increase in earnings per share.

Unfortunately, the same research found that over 60 percent of employees

are "not" engaged in their current roles.

 

So the question is: Are you prepared for the upcoming workforce crisis? How can you ensure that your employees are engaged? Here are 10 strategies you can implement today to re-engage your employees:

  1. Ask employees for suggestions. Let them comment anonymously through a suggestion box. Read employee suggestions regularly, and implement any ideas that might work and that the company can afford.
  2. Cross-train. This develops the skills of all employees. Disengaged workers may become excited about work again, or they may take their new skills to a job in the company that fits them better.
  3. Find ways to reward employees through meaningful recognition such as an extra day off, a gift certificate or another gift.
  4. Listen to employees. In addition to the suggestion box, hold regular feedback meetings. Again, use as many ideas as possible.
  5. Seek out and elicit help from workers who will motivate others.
  6. Give workers freedom to make their own decisions, especially when they deal with customers.
  7. Present company challenges publicly when possible. Let employees help solve them.
  8. Give employees the resources they need to do their jobs.
  9. Make sure your managers are engaged. If they aren’t, they will not engage others.
  10. Provide all employees regular feedback about their job performance

 

Following these strategies will help to re-engage your workers and put you ahead of much of your competition. Now here are some steps--all aimed at reducing turnover--that you can take to put yourself ahead of the rest.

 

Taming turnover

For many of today's organizations employee turnover is a big issue. Indeed, estimates show that organizations spend somewhere between $4,000 and $40,000 in recruiting and replacing an employee.

 

Quite a wide range, isn't it? This range probably exists because many employers have accepted turnover as a normal business practice.

 

They shouldn't. Organizations taking the issue seriously and investing in their people are more likely to thrive in an environment like the one experts expect we'll face: an environment short on skilled and experienced workers.

 

The good news is this: turnover can be controlled, not only by managing, training and rewarding employees creatively, but also by adhering to the following suggestions:

  • Get it right the first time. Hire the right person for the job.  How? By accurately identifying those characteristics desirable for certain jobs.  This may seem like an overwhelming task, but it is actually quite straightforward with the right tools.
  • Remember money isn’t the only thing.  Money is just one component of employment value.  Businesses also should offer a great workplace, life balance, quality leadership, career development and work flexibility. Additionally, benefits add to employment value and range from employee appreciation and recognition to a great financial package.
  • Create a caring work environment.  Salaries may keep people on the job, but they will not motivate them to produce. On the other hand, genuine, caring workplace will. The philosophy behind this is simple: give and you will get back tenfold.
  • Promote from within.  Treat employees with dignity, nurture those who want to move ahead and create a climate in which they can excel, and you will perpetuate a positive company culture and create a sustainable advantage.  Of course, to successfully promote from within, you must know your employees' strengths and weaknesses, and what makes each productive. This takes time and effort, but it's important. Having a handle on your employees' capabilities will give you a distinct advantage in retaining and developing workers.
  • Build your reputation.  This is what divides a great company from a mediocre one. Everyone wants to believe in something and feel included in something important. Employees and applicants are no exception. They gravitate toward organizations wielding strong reputations. Pay attention to your reputation. Develop your brand carefully. Nurture your image within the marketplace.

Now that you have this information, it's time to turn it into action.  Experts say our workforce will face severe shortages in the near future.  In fact, the U.S. Census Bureau indicates we'll see a serious deficit by the year 2010.  Clearly, you shouldn't delay.  Start planning your recruiting and retention strategies today.

 

        

Technical Corner:  Workforce Analysis Profile...the tool that measures employees' engagement levels

 

Question: Do you know just how engaged your employees are?  Or, do you have a "blind spot" when it comes to your workforce?

 

You can never know enough about what it takes to motivate your employees and keep them performing at high levels. After all, this information is essential to keeping an engaged and enthusiastic workforce.

 

And because it is so critical, engaging workers should always begin with analysis; in other words, with measuring employee attitudes and beliefs toward their employers, current managers and job functions.

 

That's where Profile International's Workforce Analysis Profile comes in.

 

What Workforce Analysis Profile does

I've told you about this tool before. It collects vital information leaders often miss. It reveals:   

  • employees' concerns
  • measures job satisfaction
  • provides insight into employees' needs
  • job preferences
  • and what motivates them at work.

Isn't this information every company leader needs to know? Send me an e-mail or give me a call if you are interested in engaging your employees. Or, call if you have questions about the Workforce Analysis Profile.  

 

 

Sales Tip of The Month:  Pinpointing your strengths to boost sales and loyalty 

 

Do you know why customers should buy from you?  To be successful at sales, you need to answer this question explicitly. If you can't, perhaps you need to ask your loyal buyers what they see as their biggest benefits in doing business with you.

 

Interviewing can help you identify specific, buyer-centric benefits such as the ability to customize, ROI, or attentive, fast service.

 

Once you have answers, refocus your sales presentations on your customer's needs rather than your products. As a result, you'll enjoy more effective prospecting, higher closing rates and improved customer retention. 

 

 

MGA can help put people in jobs where the demands match their abilities, the stimulation matches their interest, and they have the greatest opportunity to succeed. 

Never forget, you already have a significant investment in your people through salary, benefits, recruitment and training.  This investment can add up to hundreds of thousands of dollars per year, per person.  With MGA you can maximize that investment.

 

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