Employee engagement is not only affected by how the company as a whole treats and values its staff but by all the interactions an employee has in the work place.
Business owners or managers has the most significant impact on employee engagement, and they play a key role in sustaining it. How effective the organization executes its employee engagement strategy will highly affect how well the employee relation with the management, thus achieving high employee retention.
Many businesses is cautious and avoid creating revelry or negative competitive environment between teams or departments within the business.
This is usually true for many small and medium size enterprises, created teams or departments duplicating each other functions by having the same responsibility or job scope with respect to bringing revenue to the business.
It is therefore important for the business to have an effective employee performance management system where the employees considered as fair but competitive in measuring the performance of both the team and individual.
A process for businesses to put in place employee performance management system must benefit both the business and its employees.
Objectives of this process is to increase business income by creating positive competition among teams to improve overall business effectiveness and efficiency, while generate healthy and effective working relations between teams or individual.
How important is for a business owner to assess the performance of each employee on a regular basis?
Of course it is very critical as many businesses understand that this is one of the decent and acceptable ways to evaluate their employee performance, to reach out to their employees, and inform them of their shortcomings and the good things they have done for the company.
The issue here is that not all companies have standard processes for employee measurement. In some cases the problem is so bad that some employees are laid off for reasons that are not substantiated or understood.
An effective staff training and development programme is very important for honing and developing the skills of the current employees of the organization.
The company required for an effective training programme when the following situations occurred:
- Whenever the company hires new employees, it needs to develop them. They must be acquainted and acclimatized to the working environment and conditions prevailing in the organization.
- Whenever the company purchases new assets, it trains its present employees and teaches them how to operate the new equipment.
Hiring an employee is only the first step.Retaining a positive, motivated staff and achieving overall high employee retention is vital for business success.
The costs associated with high employee turnover can include loss of customers and business as well as damaged workforce morale. In addition, there are costs incurred in advertisement, pre-screening, verifying credentials and references, interviewing, hiring, and employee training.
The direct and indirect costs associated with employee turnover can be as high as 200-250 per cent of salary. Not including the intangible cost associated with the replacement which include OJT, supervisor’s time, administrative, loss of team morale, quality, and customer’s dissatisfaction.