Business Owners: Employee Appreciation

searcher profile

November 06, 2019

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School in Austin, TX, USA

When your employees are your business (service businesses), what things do you do to show them they are valued, and increase retention? Especially when walking in as a new owner after acquisition.

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commentor profile
Reply by an investor
from University of Canberra in Perth WA 6000, Australia
Hi Victor - good question. A few things come to mind. 2 most important things: 1. Get strategic around this rather than reactive to a current need. Think out the next 2-3 years of how you will show appreciation (I call it "giving the 'Extras'" - and budget for it, Determine what constitutes a right to earn the appreciation and what doesn't (i.e. giving discretionary effort does; showing up to work doesn't). Build it into your annual program as part of your remuneration and performance review process.

Second thing - get to know your staff and what "floats their boat." i.e. what are their dreams and aspirations, hobbies and desires? For example, If they've always wanted to know how to scuba dive but never had the time or opportunity, then that is perhaps what you give them. I've always found that employees come back more energised, and will talk about an EXPERIENCE for years. They wont talk about an additional $ amount in their pay check because by next month it's spent and the month after often forgotten.

One of my clients bought his office manager personalised motor car number plates that were branded around her favourite football team. She was in tears of gratitude and every day when she gets in her car to come to work she is reminded of how great her boss is and the work she does etc.

Great book on this is called The Dream Manager by Matthew Kelly.
commentor profile
Reply by an investor
from University of Canberra in Perth WA 6000, Australia
Another example: One of my clients, an executive for a very large property development company had a team of about 15 sales reps. One of them - around 38 years old had never bought or invested in his own home or a property. His young kids were upset because they had to move house and didn't understand why they had to leave "their home." It was because the landlord wanted to develop the property. My client asked his rep why this was happening and the reply was that he was never able to save up enough to afford a down payment to get a loan. My client, rather than talking about the need to perform better at work, make more commissions etc, asked a different question - he asked about how the rep managed his money. the rep had never been taught how to manage money. So my client showed him his own personal finance spreadsheet that enabled him to save and invest in properties over the years. He then coached his rep around this and within 12 months the rep had enough $ to start the process of home acquisition. Small amount of time, no real $ outlay but a very happy staff member who has new life skills and is set up for future wealth creation far more securely than a simple pay increase would ever allow.
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