During times of economic uncertainty, businesses often face the challenge of maintaining profitability while managing costs. In such situations, many companies focus on reducing expenses and limiting investments, including employee training and development. However, research has shown that investing in leadership development during economic uncertainty can have significant long-term benefits for the organization. This blog discusses the reasons why times of economic uncertainty offer a great opportunity to invest in developing your employee’s leadership skills.
The importance of leadership development
Effective leadership is crucial to the success of any organization, regardless of its size or industry. Leaders provide direction, inspire employees, and drive innovation and growth. In today’s fast-paced business environment, leaders need to be adaptable and able to respond to changing market conditions quickly. Therefore, investing in leadership development can help organizations build a strong foundation to help catapult their future growth.
Leadership development programs can help employees develop the skills and knowledge needed to become effective leaders. These programs typically include curriculum, peer groups, coaching, and mentoring. Through these programs, employees can learn how to communicate effectively, better manage their time, increase accountability, make sound decisions, manage teams, and develop strategic plans. As employees develop these skills, they become better equipped to lead their teams and help the organization achieve its goals.
the benefits of investing in leadership development during economic uncertainty
During times of economic uncertainty, businesses often face a variety of challenges, including reduced revenue, increased competition, and limited resources. However, investing in leadership development during these times can have several benefits for organizations.
1. Improved Employee Morale and Retention
Investing in leadership development sends a strong message to employees that the organization values their growth and development. When employees feel supported and invested in, they are more likely to feel engaged and motivated at work. This can lead to improved morale, increased productivity, and lower turnover rates.
2. Increased Innovation and Creativity
Effective leaders are often the catalyst for innovation and creativity within an organization. By investing in leadership development, businesses can cultivate a culture of innovation and creativity. Leaders who are well-trained in critical thinking and problem-solving can encourage employees to think outside the box and develop new solutions to business challenges.
3. Better Decision Making
Effective leaders are skilled at making sound decisions based on data and analysis. By investing in leadership development, organizations can help their leaders develop these critical decision-making skills. This can lead to better business outcomes, as leaders are better equipped to make informed decisions that support the organization’s goals.
4. Improved Adaptability and Resilience
Leaders who are adaptable and resilient are better equipped to respond to change and uncertainty. By investing in leadership development, organizations can help their leaders develop these critical skills. This can help businesses navigate economic uncertainty more effectively and remain competitive in the marketplace.
5. Increased Customer Satisfaction
Leaders who are well-trained in customer service can help businesses improve customer satisfaction. By investing in leadership development, organizations can help their leaders develop the skills needed to provide excellent customer service. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth advertising.
Strategies for investing in leadership development during economic uncertainty
Investing in leadership development during economic uncertainty requires careful planning and consideration. Here are some strategies that businesses can use to invest in leadership development during these times:
1. Focus on Leadership Essentials
During times of economic uncertainty, businesses may not have the resources to invest in extensive leadership development programs. Therefore, it is essential to focus on the essentials. Businesses should identify the key skills and knowledge that their leaders need to be effective and invest in programs that focus on those areas.
2. Use Technology to Deliver Training
For internal training, technology can be a cost-effective way to deliver leadership training during economic uncertainty. Online training programs and webinars can provide employees with the knowledge and skills they need to develop their skills. These technologies also offer a more flexible and judgment-free environment, allowing employees to complete training at their own pace and on their own schedule.
3. Partner with Experts
Partnering with experts in leadership development can provide businesses with access to the latest research and best practices. These experts can provide state-of-the-art systems and proven curriculum while offering facilitated peer groups access to ideas from other companies. Programs also often include specific, targeted, one-on-one leadership coaching for your team. These partners are able to help businesses tailor their leadership development initiatives to meet their specific needs.
At Leadership Resources, we specialize in transforming promising achievers into high-performing leaders through our comprehensive leadership development programs. Our tailored plans empower individuals to reach their full leadership potential, driving organizational success. We are a dedicated partner that is always ready to support you with your people strategy.
4. Create a Culture of Continuous Learning
No matter what, you must understand that investing in leadership development is not a one-time event but an ongoing process. To create a culture of continuous learning, businesses should encourage employees to take ownership of their professional development. Leaders should be encouraged to seek out new learning opportunities and to share their knowledge and skills with their teams.
5. Measure the Impact
Measuring the impact of leadership development programs is essential to ensuring their effectiveness. Businesses should establish clear metrics for success and regularly evaluate the results of their training programs. This will help businesses identify areas for improvement and ensure that their investment in leadership development is delivering the expected returns.
Invest in your people for sustainable success
Investing in leadership development during times of economic uncertainty can have significant long-term benefits for organizations. By providing employees with the skills and knowledge needed to become effective leaders, businesses can improve employee morale, increase innovation and creativity, and better respond to changing market conditions. To achieve these benefits, businesses must carefully plan their leadership development initiatives and focus on the essential skills and knowledge needed for success. With a strategic approach, businesses can invest in their employees’ leadership development, even during times of economic uncertainty, and build a strong foundation for future growth and success.
Are you ready to invest in your people and navigate uncertain times with strong leadership? Contact us today to explore how our leadership development programs can drive your organization’s success. Let’s embark on a transformative journey together, investing in your people for a resilient future!
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The expansion of your business is both an exciting and daunting prospect. If this growth occurs too quickly or lacks direction, your business can soon find itself facing hardships. One of the best ways to keep your business growth from ballooning into chaos is to put the right people in the right positions. Of course, finding key employees during a period of growth is often easier said than done, and keeping them around is another challenge in its own right. With a steady and strategic approach, however, you can find key employees and get the most of their abilities when growing your business — here’s how.
How to Find the Right Employees
Clarify Your Business Goals and Roles
Your first order of business should be to determine what you wish to accomplish and which positions will aid in achieving these goals — these details will become your map and compass when seeking key employees. Without this map, you’ll have a hard time knowing where to look and what to do once you arrive. Clarifying your business growth goals involves re-examining your mission and vision and calibrating it for this new chapter (these changes might be minute or more ambitious). Once you’ve got a grip on your ideal direction, you can narrow your employee search, create better screening criteria, pose more focused interview questions, and more, saving you time and energy in the search and placement process.
Don’t Be Afraid to Search Outside the Box
Even if you have a strong idea of where your business is headed and how you wish to get there, business growth always includes some unknown factors. As uncomfortable as these unknowns might make you, note that the unexpected also holds the greatest potential for innovation. In other words, you might find key employees in places you wouldn’t have guessed. This isn’t to say you should just hire anyone on the spot — rather, don’t strictly limit yourself to potential candidates who fit a particular mold for the sake of easier employee management. Leave the door open for candidates with diverse ideas and unique energy. By stepping outside the box, you just might find someone who sparks further growth in your company.
Keep the Long-Term in Mind
No matter how rapidly your business grows at certain intervals, sustainable growth spans long stretches of time. Therefore, it’s imperative to seek employees who mesh with your current workplace culture and who won’t likely leave the second they get another offer. As we’ve discussed in previous blogs, onboarding the most talented employees is a double-edged sword since your competitors might try to pull them away from your organization. If you want to keep these key employees around and have them grow with your business, you must be prepared to negotiate terms and continue offering them development opportunities. It’s also worth asking candidates during the interview process if they see themselves sticking with your company for the long haul.
Consider Promoting Employees Within Your Organization
Sometimes the right person is already in your organization. Depending on how your business is growing and how quickly, it might make more sense to promote current employees rather than hire externally. One of the main reasons to invest in leadership development programs for your people is to prepare them to take on more responsibilities and enter new roles over time — this is also the essence of succession planning. Indeed, the more you invest in your employees, the easier it will become to identify key positions for succession planning and fill said roles with confidence.
Unlocking the Key to Your Business’ Growth
As your business grows, so too must its people — whether this means finding new employees or promoting current employees to fill new roles, Leadership Resources can help your business, and its people unlock their full potential.
At Leadership Resources, our purpose is to make the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease obstacles and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow at times like these when you need it most.
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Wherever people consistently gather in groups (big or small), a culture is bound to arise. So, while the word “culture” has become a buzzword in the professional sphere, it’s merely a natural consequence of company life. Of course, company cultures can become stagnant, exclusionary, and downright toxic if not properly directed and cultivated at every level — leaders must set positive examples of what the culture should look like, employees should do their best to uphold these values, and new hires should be screened to ensure proper cultural fit. Indeed, finding candidates who fit your existing culture makes team and employee management easier and more productive. The question is: how should your business go about locating these candidates?
Let’s outline some key steps to finding employees that will not only fit your current culture but potentially enhance it as well.
How to Hire a Good Culture Fit
Establish Core Values
Finding the right employees for your company’s culture is an uphill battle (if not an impossibility) if said culture isn’t clearly defined from the outset. You must be able to identify your organization’s values and embed them in your operations. Some businesses might cultivate a performance culture wherein productivity reigns supreme on the list of priorities; others might prioritize collaboration; some companies gather around a singular purpose (i.e., sustainability); the list goes on. A good test of your culture’s clarity and strength is to try and define it in a simple sentence — essentially a concise mission statement.
Put Your Culture Front and Center
Once your company culture is clearly defined, it’s imperative to get the message out there. In doing so, potential candidates with the right cultural fit will gravitate toward your organization. Your marketing materials (especially those for recruitment) should strongly focus on your business’ values. Make sure your website is outfitted with an “About” page and “Careers” section that both speak to your company’s values. Consider receiving employee testimonials and posting positive images on social media pages as well. Those seeking employment will appreciate getting a glimpse into what it might be like to work for your company directly from current employees.
Keep Tabs on Your Workplace Culture
Company cultures should be strong but not so rigid that they snap under pressure. Simply put, cultures evolve over time, and it’s crucial to remain open to changes that will ultimately benefit your organization and everyone in it. If something about your current culture is causing problems for some (or most) of your people, you must get to the bottom of it quickly. Distributing a monthly, quarterly, or annual company culture survey will give you key insights into what is and isn’t working, and which values require more attention or specific adjustment. Taking the time to constantly check and improve your company culture will allow you to keep up with the competition and deliver the most accurate representation of your organization to potential candidates.
Incorporate Your Values in the Interview Process
If you’re zeroing in on a candidate but still aren’t sure about their cultural fit, the best thing to do is simply ask them the right questions during their interview. It’s often best to start with some more casual questions regarding what they do outside of work, such as:
- What are your hobbies?
- What’s your average weekend like?
- What do you value in yourself and others?
- What’s your most negative personality trait?
From there, ask questions more directly related to company/employee culture, like:
- Do you enjoy working with others?
- In what type of setting do you accomplish your best work?
- Do you see yourself working here for a long time?
- Can you give an example of a moment in which you demonstrated one of the company’s values?
- What are your thoughts about the company’s stated values and why?
Questions such as these benefit both you and the candidate as you inch closer to the hiring decision — they will gain an even deeper understanding of what it means to work for your company, and you will better understand how well they might fit into your culture.
Capturing the Right Candidates for Your Culture
Your company’s values and culture serve as the foundation for everything you do and your overall success. When seeking the most qualified candidates for your company, remember to keep culture in the equation — skills and knowledge matter greatly, but cultural fit is the glue that keeps your organization together.
At Leadership Resources, our purpose is to make the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow at times like these when you need it most.
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The “virtual office” isn’t a new notion by any means, but the COVID-19 pandemic that continues to ravage the world has made remote work the norm rather than the exception for countless businesses. While some companies saw a smooth transition to these workplace changes, others had a more challenging time adapting to them and continue to struggle with the ramifications of working from home. There’s no denying the obvious differences between in-person and remote work (e.g., no more commutes, less interaction, adjustments in hours, etc.), but these surface-level distinctions have broader implications on productivity, mental health, relationships at every level, company culture, and more. Those companies that can hold onto and even improve these aspects of their enterprise in the midst of such a global shift will have a major advantage moving forward, and every employee will benefit to boot.
Let’s go over how to manage employee relations effectively and maintain a strong culture despite remote working conditions.
How to Keep Relationships While Working Remote
Don’t Avoid Company Culture Conversations
When everyone is suddenly working from home, there’s often an elephant in the virtual room that needs addressing. That metaphorical elephant represents the clear change in communication and culture that occurs when people stop seeing each other face to face. Rather than ignore the obvious, though, leaders should point it out and spark conversations about workplace culture, how it’s changed, and how it can be improved. These conversations will keep everyone thinking about and discussing tangible short- and long-term goals that can be achieved virtually and, when the time comes, in person.
Take Advantage of Modern Technology
We’re fortunate to live in a time that offers so many methods of long-distance communication — phone calls, video chats, text-based chat rooms, and message boards, etc. While there’s no replacement for in-person interactions, there are also countless opportunities to keep in touch with team members throughout the workday when working remotely. If you’re concerned about keeping up with employee relationship management, then use this technology to your advantage in practical and creative ways — have regular video meetings to go over projects and discuss new ideas, host virtual happy hours weekly or monthly to unwind and discuss non-work-related matters, replace the time normally reserved for commuting with remote coffee or breakfast check-ins with employees, have lunch over video call with team members, the list goes on. The bottom line is this: communication is key for maintaining strong management-employee relations, boosting team morale, and fortifying culture. Of course, you’ll want to make sure each of your employees has access to the necessary technology to partake in these various virtual activities.
Encourage a Proper Work-Life Balance
Finding a healthy balance between work and non-work can be a challenge for many people, regardless of extenuating circumstances. Of course, striking this balance is even more difficult during remote working conditions. Working from home creates a dynamic in which it’s difficult to separate one aspect of your life from another. Even if you have a dedicated home office, you’re never far from your living room, TV, child/children, pet(s), etc., during the workday. And when you’ve finished your work for the day, it can be hard to switch your brain from “work” to “play” when you’ve never left your home to begin with. This lack of boundaries between work and life can quickly lead to burnout and negatively affect one’s mental health. It’s up to leaders to encourage and exemplify a healthy work-life balance, so employees don’t feel trapped in their work or too distracted to get anything done. You can do this by:
- Providing resources for employees regarding these matters to help them achieve a positive balance in their own lives
- Establishing boundaries that limit or restrict work-related communications to a certain range of hours (e.g., 9 A.M. to 5 P.M.) so employees aren’t tied to work at all times
- Prioritizing productivity over hours worked, so employees feel free to set their own hours and work at their own pace
Different companies will have different ways of promoting a good work-life balance; making this a priority and leading by example is one of the best leadership qualities you can have.
Recognize Your People and Accomplishments
Lastly, don’t let virtual work take away from the important ritual of workplace recognition. Whether in-person or remotely, everyone likes to feel seen for their contributions and accomplishments, and recognizing your people for their hard work is key in maintaining strong relationships and strengthening your culture. In many ways, employee/team recognition is more important than ever now that so many of us are working from home, as it’s normal for people to feel underappreciated and unseen when siloed from their coworkers and managers. Letting your people know that their work and fortitude haven’t gone unnoticed is an important role for all leaders during this time and in general.
Remotely Challenging Times
Navigating leadership in times of stress and change like the ones we’re currently living in is no walk in the park. That said, current remote working conditions provide the perfect opportunity for companies and leaders everywhere to test their strengths, bolster their weaknesses, and create an even more cohesive company culture that can withstand the most difficult circumstances.
At Leadership Resources, our purpose is to make the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow at times like these when you need it most.
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Among all the challenges you face as a business owner, few things are more difficult to approach than employee compensation. Between establishing base wages and salaries, distributing bonuses, and giving out raises, you’re bound to get a headache or two managing it all. That said, these issues cannot be ignored. Your people might like working for you and your business, but they won’t stick around if they don’t feel fairly compensated, especially if they can find a better paying job elsewhere.
Employees expect their pay to be fair from the beginning and increase over time (beyond just keeping up with inflation). Indeed, without delivering this expectation to new hires, businesses would have a hard time getting anyone on board, and developing leadership talent would be impossible. The hard part for you is figuring out how to broach this subject, how to decide who gets a raise (and when and why), and how to keep your people from turning on each other in favor of the almighty dollar.
So, if you’re hiring new team members, here are five important decisions to make before giving raises.
What to Do Before Giving a Raise
1. Create a Compensation Structure
As your business grows and you hire more people, you need to establish a system of compensation that works best for you. Some companies keep things simple with a one-size-fits-all solution that delivers the same percentage pay increase to every employee on a regular basis (usually annually). While this approach is equitable and easy to manage, it can negatively impact productivity and employee morale, as there is no clear correlation between performance and pay.
Other businesses might decide that performance and compensation management go hand in hand. These companies conduct regular performance reviews for each employee and give out raises based on how well they’ve done. All employees might receive raises, but the best performers will get a higher pay bump. This method can help motivate individuals to work harder and remain engaged, but it can also create tension between employees, splintering unity.
Both approaches have their merits, and you may decide to create a system that falls somewhere in between. Just make sure that your compensation structure benefits your employees and business as a whole.
2. Match the Market
No business exists in a vacuum. You must pay attention to what your competitors are doing if you plan on thriving in your industry and retaining your top talent. Companies that offer the best compensation packages tend to have a competitive edge. You may need to work with a business coach to give you a broad perspective of your industry’s outlook on compensation so you can match or exceed those expectations. This will allow you to attract and retain the best people.
3. It’s All About Value
When budgets are tight, giving out raises might seem like a burden. Indeed, doing so might result in short-term losses. However, you have to think long term and focus on building your business’ value over time. Your people bring value to your company, after all, and without them, you wouldn’t be able to grow or thrive. By reciprocating and delivering value to your employees, you’re creating a feedback loop that will propel your enterprise forward. In this way, compensating your people accordingly is a major component in talent management and succession planning. If you want your organization to be its very best and last for years to come, you need to invest in your people.
4. Exercise Care With Pay Compression
As you calculate wages for new hires and percentages for raises, be mindful of pay compression. This phenomenon occurs when newcomers make the same amount as those who have been with the company for a long time. Not only might this offend long-standing employees, it may actually devalue their position, as the newcomer’s wage accounts for inflation while theirs does not. In other words, a dollar is worth less today than it was a year ago, and even less so than 10 years ago, and so on.
Pay compression can toxify your workplace culture in more ways than one. Therefore, it’s important to adjust all salaries for inflation and always factor in longevity so senior employees are rewarded for their commitment and experience.
5. Be Upfront About Pay When Hiring
When seeking employment, people appreciate transparency. Companies that clearly outline their compensation packages and potential for growth often entice the best people. So, if you’re looking for top talent, don’t shy away from discussions around pay. This includes mentioning how, why, and when raises are dished out. The more open you are about these matters, the better, as it establishes expectations and minimizes confusion.
There’s nothing easy about raises. But if you take your time and think in the long term, you can develop a compensation system that attracts top talent, keeps your best people from leaving, improves your culture, and ultimately adds value to your business.
At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
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Delivering criticism to a team can be a significant cause of leadership stress for many leaders. It’s not always easy to find the proper balance between sugar-coated comment and pointless put-down. But when someone makes a mistake, requires correction, or falls short of their duties, ignoring or obfuscating the issue is more harmful to your workplace culture than addressing it head-on.
So, how can you deal criticism in a way that lets your team member know where they went wrong, and, just as importantly, how they can improve? Let’s examine 5 phrases that can serve as templates or starting points for more effective workplace criticism.
How to Properly Criticize a Workplace
1. “I like where this is headed. Let’s see what we can improve…”
This is a powerful phrase to employ when your team or team member suggests an idea that has merit but plenty of flaws. Rather than starting with the problems, begin with a sincere recognition of the idea’s potential. This will energize the team while also focusing everyone’s efforts on trimming the fat and making necessary changes.
2. “The team could really benefit from more of your input.”
If you’re a team manager, you may experience an occasional imbalance in effort and input from your employees. Sometimes a minority of the team makes most of the calls. Or, perhaps a single team member rarely, or never, contributes to the creative process. When this happens, don’t just tell them to talk more during meetings. Instead, let them know that the team is lacking an important piece of the puzzle. This often motivates a less assertive team member to make their opinion known.
3. “This area seems to be a challenge for you.”
We all have our weaknesses. The key is identifying them so we know which areas we must work to improve. But it’s not always easy to make out our own faults. One of the most important leadership traits is being able to not only identify these problem areas in your team members, but also point them out without hesitation or ambiguity. Using the above phrase provides a solid entry point into this conversation, as it doesn’t personally attack the individual in question but still addresses the concern.
4. “You haven’t been meeting your performance goals/expectations.”
By letting a staff member know in simple terms that they haven’t been meeting their expectations, you accomplish a few important things. First, you reiterate what’s objectively expected of them, as laid out in previous conversations. Second, you open the door for a conversation on why these goals aren’t being met. And third, you can begin crafting a tangible performance management strategy for getting back on track. This is more effective than telling them they’re not doing a good job, or demanding results without a reminder of the company’s expectations.
5. “What do you think could have happened differently?”
Finally, effective leadership depends on reciprocity and communication. If you’re going to lead well, the conversation must go both ways. So, when someone messes up, make sure you ask what they thought of the situation, and how they might have handled it differently. To avoid coming off as patronizing, sincerely listen to what they have to say and give your thoughts as well.
No matter the circumstance, coming up with constructive criticism is a challenge for all leaders, but vital to maintaining an open and productive workplace. The above phrases are just a handful of examples that can help you address important issues without making it personal or sowing seeds of resentment.
At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
Among all the challenges you face as a business owner, few things are more difficult to approach than employee compensation. Between establishing base wages and salaries, distributing bonuses, and giving out raises, you’re bound to get a headache or two managing it all. That said, these issues cannot be ignored. Your people might like working for you and your business, but they won’t stick around if they don’t feel fairly compensated, especially if they can find a better paying job elsewhere.
Employees expect their pay to be fair from the beginning and increase over time (beyond just keeping up with inflation). Indeed, without delivering this expectation to new hires, businesses would have a hard time getting anyone on board, and developing leadership talent would be impossible. The hard part for you is figuring out how to broach this subject, how to decide who gets a raise (and when and why), and how to keep your people from turning on each other in favor of the almighty dollar.
So, if you’re hiring in Omaha, Nebraska, here are five important decisions to make before giving raises.
What to Do Before Giving a Raise
1. Create a Compensation Structure
As your business grows and you hire more people, you need to establish a system of compensation that works best for you. Some companies keep things simple with a one-size-fits-all solution that delivers the same percentage pay increase to every employee on a regular basis (usually annually). While this approach is equitable and easy to manage, it can negatively impact productivity and employee morale, as there is no clear correlation between performance and pay.
Other businesses might decide that performance and compensation management go hand in hand. These companies conduct regular performance reviews for each employee and give out raises based on how well they’ve done. All employees might receive raises, but the best performers will get a higher pay bump. This method can help motivate individuals to work harder and remain engaged, but it can also create tension between employees, splintering unity.
Both approaches have their merits, and you may decide to create a system that falls somewhere in between. Just make sure that your compensation structure benefits your employees and business as a whole.
2. Match the Market
No business exists in a vacuum. You must pay attention to what your competitors are doing if you plan on thriving in your industry and retaining your top talent. Companies that offer the best compensation packages tend to have a competitive edge. You may need to work with a business coach to give you a broad perspective of your industry’s outlook on compensation so you can match or exceed those expectations. This will allow you to attract and retain the best people.
3. It’s All About Value
When budgets are tight, giving out raises might seem like a burden. Indeed, doing so might result in short-term losses. However, you have to think long term and focus on building your business’ value over time. Your people bring value to your company, after all, and without them, you wouldn’t be able to grow or thrive. By reciprocating and delivering value to your employees, you’re creating a feedback loop that will propel your enterprise forward. In this way, compensating your people accordingly is a major component in talent management and succession planning. If you want your organization to be its very best and last for years to come, you need to invest in your people.
4. Exercise Care With Pay Compression
As you calculate wages for new hires and percentages for raises, be mindful of pay compression. This phenomenon occurs when newcomers make the same amount as those who have been with the company for a long time. Not only might this offend long-standing employees, it may actually devalue their position, as the newcomer’s wage accounts for inflation while theirs does not. In other words, a dollar is worth less today than it was a year ago, and even less so than 10 years ago, and so on.
Pay compression can toxify your workplace culture in more ways than one. Therefore, it’s important to adjust all salaries for inflation and always factor in longevity so senior employees are rewarded for their commitment and experience.
5. Be Upfront About Pay When Hiring
When seeking employment, people appreciate transparency. Companies that clearly outline their compensation packages and potential for growth often entice the best people. So, if you’re looking for top talent, don’t shy away from discussions around pay. This includes mentioning how, why, and when raises are dished out. The more open you are about these matters, the better, as it establishes expectations and minimizes confusion.
There’s nothing easy about raises. But if you take your time and think in the long term, you can develop a compensation system that attracts top talent, keeps your best people from leaving, improves your culture, and ultimately adds value to your business.
At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
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In the highly competitive business landscape, there seems to be little room for respite. As it turns out, though, working nonstop often stifles rather than stimulates a company’s output. Enough research has now been conducted to confidently conclude that paid time off (PTO) promotes productivity and long-term organizational success.
Developed countries outside the U.S. seem to understand this, mandating a minimum number of days off for workers, usually somewhere between 20 and 30 days. No such regulation exists in the states, however, with the average American receiving about 10 paid days off per year (according to the Center for Economic and Policy Research).
Some companies, embroiled in a culture of no compromises, might think that 10 days off is plenty, even generous. But, perhaps a better question is this: Are those 10 days of PTO enough to keep a business healthy, dynamic, and reputable? Even knowing that PTO is good for productivity, though, employers might have a hard time determining just how much vacation time to offer its employees, and how to best structure this policy. While no two businesses will devise the same PTO plan, a number of key considerations can inform their decision.
What to Know About Paid Time Off Policy
The Importance of Paid Time Off
Paid time off is crucial for promoting workers’ mental health, cultivating new ideas and leaders, and establishing a workplace culture that attracts and retains quality people.
Plenty of people love their work, but lacking a balance between work and the rest of one’s life tends to undermine both. Ironically enough, when individuals can’t seem to escape their working role, their work suffers as a result. Burnout and stress are major causes of performance management issues in organizations and can take a toll on one’s mental health. Taking time off allows employees and leaders to recharge and shift their thought processes, so when they finally return, they come back with an energetic, fresh perspective that can propel the organization forward.
Businesses who boast a superior PTO policy also benefit from acquiring a more impressive pool of candidates. Many of those entering the workforce actively seek opportunities that offer competitive benefits such as fair PTO. If a company wants to hire the best people out there, modernizing its PTO plan makes a powerful statement.
How Much PTO Is Good for Productivity?
While it may be abundantly clear that offering reasonable PTO is beneficial for business, calculating the optimal amount of PTO is a bit blurry. This number will vary from one company to the next, based on its particular structure, number of employees, the regularity of workload, etc.
For instance, a company that does most of its business in the summer might mostly hire temporary part-time workers, with only a few full-time staffers on hand. These full-time workers might still have work to do on the off-season, but it might not be as burdensome as the on-season, so their PTO might be extensive but limited to a certain time of year.
Businesses that operate year-round and hire predominantly full-time workers will likely have a different PTO system in place than the one outlined above. Many companies base their PTO offerings on the length of time an individual has served the organization. For example, a new employee might have 10-15 paid days off while someone who has been there for over a decade might have closer to 20-25 days off. This service-based policy both incentivizes employee retention while delivering more time off for those who may require it to cope with leadership stress.
Some newer companies, especially those in Silicon Valley, have actually begun experimenting with an “open PTO” plan. These policies essentially allow employees to take time off as much as they’d like, so long as they meet their deadlines. This system might seem ripe for abuse. However, the opposite may be true. As discovered by a 2017 study conducted by Namely, many employees under this open policy actually end up taking fewer days off than those under stricter PTO plans precisely because they don’t want to take advantage of it. That said, unlimited vacation policies show potential for cultivating high performance culture companies, as long as expectations are made clear and workers feel welcome to take a break when they need one.
Cultivating a Culture That Encourages Taking Time Off
There may be no one-size-fits-all PTO policy, but all businesses can benefit from making sure PTO is properly utilized by workers. According to a 2016 study by the U.S. Travel Association’s Project: Time Off, 54 percent of Americans neglect taking some of their earned vacation time, possibly for fear of losing their job, falling behind on project deadlines, or failing to meet expectations. To ensure that employees get the breaks they need and deserve, companies should clarify their PTO policy and actively encourage everyone to use it fully.
Leaders within the business can set an example by committing to their vacation time and advocating its value. Additionally, workers should be reminded of how much PTO they’re entitled to, and if they must use it within a given timeframe. Businesses should also have a plan in place to prevent emails and messages from being sent to those using their PTO, so they never feel pressured to check in on work-related matters.
Everyone needs a vacation. No organization can succeed when its people are exhausted, stressed, and unhealthy. In this way, PTO is a major component of proper employee productivity management. As for how much PTO boosts productivity, it all depends on how your business operates. Regardless of the hard numbers, make sure your people use the time off they’re given.
At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
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A workplace is more than just a collection of walls, chairs, desks, and employees. It’s an environment where several individuals must cooperate and focus on a number of tasks each day. The way your workplace is organized in large part determines how your staff members feel, how hard they work, and how they get along with one another. In other words, your office should be designed to improve and optimize your company’s unique workplace culture.
We’re all familiar with the proverbial office with sequestered cubicles and low ceilings. And while many work environments have inherited and maintained this design, plenty of modern offices have done away with the barriers and opened right up. Are these open floorplans better than cubes, though? Let’s run down the pros and cons of both set-ups and see if we can determine a winner.
Should You Get an Open Floor Plan or Cubicles?
Cubicles
Our modern sensibilities might shudder at the thought of cubicles. But that drab image in our heads is usually not representative of the real thing. Cubicles can range in size, shape, and design.
Pros:
- Personal(ized) Space: Employees who work in an office spend a lot of their time there. Many of them enjoy having some space where they can put up photographs, artwork, and knick-knacks to make it their own. On top of that, most people benefit from some personal space where they can get away from others every now and then.
- Limits Distractions: Cubicles are often a great way to reduce performance management issues caused by visual or auditory distractions. Their walls keep such unwanted stimuli out of sight and mind. This is especially important for jobs and roles that require serious focus or privacy.
Cons:
- Detrimental to Teamwork: Cubicles might not be the best option for a team-driven business. These partitions keep everyone in their own little bubble for much of the day. Leaders may struggle with team management as a result.
- Less Accountability: These enclosures may also tempt some employees to shirk some of their responsibilities. In this regard, cubicles might not make for the most effective performance management, even if they also encourage focus at times. It’s a double-edged sword.
Open Floorplans
This type of office configuration is becoming more and more popular. On paper, open floorplans sound great. However, they’re not without their flaws as well.
Pros:
- Encourages Communication: The fewer barriers your office has, the more open it is to collaboration and communication. Staff members will get to know the faces and names of everyone else in the office. These open floorplans make it difficult to hide from your team.
- Increases Accountability: An open floorplan makes it so every employee has an idea of what their team members are up to. In this way, your team will stay productive and accountable for their work.
Cons:
- Less Privacy: All of that open space comes at the cost of privacy, of course. Without the comfort of a cubicle, employees have a harder time making their workplace their own. They also lack options when they want to take a break from socializing.
- Increases Distractions: The more you can see and hear, the harder it may be to focus on the task at hand. Some employees can manage their attention better than others, but an open floorplan opens the door for all kinds of distractions. So, this configuration might not always be suited for proper employee productivity management.
Open Floor vs. Cubes? Which is the Better Option?
In a way, the pros and cons are flipped for each set-up. That means the “winner” depends on your specific needs, roles, and company culture. If your company relies heavily on teamwork, collaboration, and free expression, open floorplans are often ideal. If your business, on the other hand, requires more individual focus and privacy, cubicles might be the way to go. Some offices might even incorporate elements of both configurations. Do what’s best for your purposes.
At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
The notion of a workplace is undergoing a major transformation. The internet allows people to share ideas, files, and projects across the world with lightning speed. For industries that primarily deal with information and communication (as opposed to manufacturing), the need for dedicated commercial space is becoming antiquated. This is especially true for businesses that wish to hire the best candidates across the globe and don’t want to be limited by their region’s pool of potential hires.
Forbes projects that half of the U.S. working population will soon work from home or at least away from a central office on a regular basis. Many workers and companies have already made this leap. Of course, many of these businesses still maintain some office space for a number of reasons, such as maintaining a workplace culture. But is remote work right for your team and company? If you’re on the fence about this future, here are some factors to consider.
How to Tell Remote Work Is Right for Your Team
What is the Nature of Your Work?
Not every job is an ideal fit for remote work. If your company’s day-to-day operations include plenty of meetings and hands-on demonstrations, you probably want your team to be physically present most days. The same goes for industries that require some level of physical labor. Working remotely means your body is essentially unavailable.
If, however, your business mainly deals with data, information, and simple communication tasks, remote work might make a lot of sense. In these cases, your employees’ brains (and fingertips) are the most valuable assets. It doesn’t matter where they’re working, so long as they have a functional internet connection.
Establishing Trust With Your Team
Even if remote work makes sense on a practical level, you must also consider the potential pitfalls of fragmenting your team across physical space. One of the primary advantages of maintaining office space is its usefulness in the realm of team management. Having your team in one place at the same time makes it easier for everyone to communicate, establish trust, and hold each other accountable.
This isn’t to say that communication or trust-building is impossible without a shared space. Video conferences, text-based chat groups, and occasional in-house meetings can be enough to keep your team on track. Still, if you’re going to offer remote work, you need to establish some kind of performance management system so that all employees are accountable for their contributions. Working away from an office is a big responsibility and everyone on your team must be on the same page.
Cost Considerations
Keeping the lights on isn’t cheap. Depending on the size and scope of your operation, owning or renting commercial property might hurt your bottom line. First, take account of how many employees you have. Then, consider how long, on average, it takes for your workers to get to the office each day. You might start to realize that your employees are burning a lot of gas just to show up, and that you have more space than you need.
On the other hand, your office space might be integral to your company culture, both internally and externally. For instance, if you’re in a prime location, regularly conduct meetings with clients and customers, and utilize every part of your space, your property might be a fixture of your business model. Whatever the case you must consider these costs and benefits, even if it means offering remote work to a portion of your staff, or moving to a smaller location.
Stress, Productivity, and Culture
For many people, working remotely can significantly reduce stress and actually increase productivity. Commuting to an office, socializing with others, and feeling confined in a cubicle each day can take a toll on many workers’ mental and physical health. There are plenty of examples of how managers can reduce stress in the workplace, but offering remote work, if possible, might be one of the best.
When team members can work from their favorite location, skip the morning rush hour, and feel in control of their work environment, they’re often more inclined to get work done. There’s always a risk here in terms of employee work management, of course. But as long as team leaders establish clear guidelines for how team members should approach remote work and what’s expected of them, this opportunity can make for a more positive, productive company culture in the long run.
Remote work might not be right for every company just yet, but it seems to be the way of the future. Keeping the above considerations in mind, you might realize that remote work can lead your team in a positive direction.At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.
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