Employee Moral

Reduce turnover and grow your business with happy, motivated employees

by Staci Matthes

Olympic Business Journal Staff Writer

 “Employee morale is not a finish line. It is an ongoing process. Whether it is great, so-so, or in the toilet it can always be improved.”

 “People are happier at work when they feel they have some say in the decisions.” - Robin

Finding a good employee, retaining that good employee.

Most business owners and managers know that two important, yet challenging aspects of managing employees are how to find just the right person for the job, and keep them happy and motivated through the years in a changing workplace.

This ongoing battle, say two local business people, can be fought and won by following a few simple steps, including hire smart in the first place, provide good training up front, give workers incentive, regularly recognize them, and keep the lines of communication open. It may seem like the goal of having a productive, positive team is just out of reach, but they say with a little pre-planning and creativity it can be achieved.

Howard (Howie) Ruddell, president of Ruddell Auto Mall in Port Angeles, believes that creating a positive work environment is something not to be taken lightly. Employee morale, he says, can break or make a company.

“If you don’t have satisfied people you won’t have satisfied customers,” he said. “And if you’re business is enjoying satisfied customers chances are your people are satisfied, too. The two really go hand in hand.”

Human Resources Manager Robin Hake of the Food Coop in Port Townsend agrees. She says attempts to retain solid employees will pay off in the long run.

“Every great employee is gold,” Hake said.

First hire smart

Ruddell, like many business owners, knows that employee turnover can be costly. That’s why he takes his time filling open positions.

“We’d rather not hire than hire the wrong person,” he said.

With 39 employees currently on Ruddell’s payroll, he has found that involving staff members in the hiring and interview process can be effective. New hires aren’t just interviewed by him or their direct supervisors, other team members who will be working with the new staffer are also included in the efforts. This cross-departmental interview process gives current employees a sense of empowerment and knowledge that their opinions matter, plus because they’ve been able to provide input on who should be hired, existing employees take a special interest to ensure that the new hire is successful, he said.

Ruddell says that his business has a better than average turnover rate due in a large part to the fact that adequate training is provided at the forefront.

“Turnover is the highest cost you can have,” he said. “Anything you can do to reduce turnover is worth the time and energy.”

He says in many instances when an employee is performing poorly it can be linked back to insufficient training. Poor performance can lead to a company’s inability to pay a competitive wage because business might be suffering due to this disgruntled employee, and eventually that employee will end up leaving, Ruddell says. This scenario is not good for business, its bottom line or its reputation. However, it is one that can be avoided if employees are given solid training and know what is expected from them at the beginning, he said.

Provide incentives

The majority of Ruddell’s staff has some component of their wages based on performance. He believes that providing monetary incentives to his employees creates ownership, something that is good for everyone: the owner, the employee and the customer.

“Happy customers come back, they tell their friends and at the end of they day the employees reap the benefits,” he said.

Commission and bonuses aren’t just for sales consultants anymore, he said. Everyone who provides a service to a customer or potential customer at Ruddell Auto Mall is rewarded in some way when customers are content and the business is steady.

“At the end of the day you can get a paycheck anywhere,” Ruddell said. “This way you are giving employees a sense of responsibility. In a way you are setting them up to succeed and setting them up to care.”

He also believes that these perks have turned the positions at Ruddell Auto Mall from jobs into careers, which also helps to attract top industry professionals.

Likewise, Hake says that providing incentives can be a great motivator. Two and half years ago the Food Coop had an 80 percent turnover rate, but was able to cut that number in half by increasing employee benefits, including awarding cash bonuses, improving hiring practices and supervisory training. Last year, the Coop disbursed more than $100,000 in bonuses, Hake says. These bonuses aren’t an annual guarantee, rather they are offered as way to give workers, both part- and full-time, extra incentive to consistently do their best.

“When the Coop outperforms our projections for the year we pay cash bonuses,” she said.

In addition to the bonuses, the Coop annually allocates funds so that its supervisors can reward team members who are going above and beyond the call of duty with personalized gifts, Hake says. Called the “High Five,” employees receive items such as free lunches in the deli, smoothies, a box of chocolates, movie tickets, etc, she says.

One word of caution about introducing too many sales games or prizes. Ruddell warns that an over abundance can be harmful, especially if the owner feels that this is the only way he or she can be motivate his staff. It’s one thing to come up with a clever incentive during a flat spot, he says, but it’s entirely different if you are giving away Super Bowl tickets every year.

“If you have to do that all the time it is indicative of some real problems,” he said. “Make sure incentives aren’t being used as band-aids.”

Recognition can be an effective tool to strengthen employee morale, Hake says. As another way to show its employees that they are valued, the Food Coop sponsors a “Hearty Thank-You Award.” Every month staff members, supervisors and customers nominate employees who they feel are giving it their all and then some. The three previous winners make the final selection, and the winner is given the choice of either $100 or eight hours of paid time off, Hake says.

“This recognition really means something to them,” she said.

The Food Coop also uses fun to motivate and encourage. About twice a year, on peak sales day such as the day before Thanksgiving or December 23, the Coop orders in lunch or dinner for all of its employees.

“It is unexpected and a really great way to show appreciation,” Hake said.

Give them a voice

Hake believes supervisors have an important role when it comes to employee retention and attitude. The Food Coop spends the time to adequately train its managers and uses a participative management program.

“There’s an old HR saying that employees don’t leave jobs they leave supervisors,” Hake says.

It is for that reason that the Coop hires an independent consultant every year to conduct two, alternating surveys. One is an 80 question employee climate survey and the other, a supervisor feedback survey, gives employees the opportunity to evaluate managers anonymously.

Ruddell says that owners shouldn’t feel defeated if they feel the need to hire an outside consultant or agency to access the inner-office communication and overall productivity. He has hired one in the past and says that the feedback that was provided was worth the investment. It’s a great way to measure customer and employee satisfaction, he said.

Practicing a participative management technique has proven to be an effective way for Coop supervisors to engage their employees in day-to-day operations. Hake says department heads are encouraged to regularly include their employees in decision making responsibilities when appropriate.

“People are happier at work when they feel they have some say in the decisions,” she says. “It certainly doesn’t work for everyone to have a say every time, but overall this principle gives employees a voice and the supervisors a wider perspective.”

Ruddell believes the easiest, most cost-effective way an owner or manager can cultivate a company culture where employees feel valued is by listening and being accessible. Ruddell has an open door policy in which his employees know that they are welcome to come in and share their thoughts, concerns or challenges with him. He says that by encouraging this honesty and openness he has learned a lot about himself and his business, while creating an invaluable rapport with his staff.

Avoiding burnout

Knowing firsthand what is going on with individuals helps Ruddell identify those that may be at the beginning stages of burnout. He says that because he is with his people regularly he feels that he is more “in tune” with them.

He says that if a good employee up and quits and no one on his staff saw it coming, then he would blame himself and that employee’s manager.

“Shame on the manager,” he said, “shame on the owner.”

Ruddell knows that even the best employee can have a bad day or be going through a bad patch either with family concerns or health problems. And it is for that reason that he makes a conscious effort to remain flexible. For instance, he’d rather give a good employee two to three days off to sort through some issues or rest than see her get burned out, stressed out and potentially leave.

“It’s amazing how they really appreciate it,” he said.

Even lending a sympathetic ear is all some employees need, he said.

Food Coop employees have access to a free, 24-hour, seven day a week, confidential counselor. This counselor can be accessed via the telephone, in a session or online through a company called First Choice Health, Hake says. Employees can discuss a number of topics with those counselors, including addiction, debt counseling, parenting and job-related issues. This same program provides a legal referral where Coop employees can receive up to 30 minutes of free legal advice, Hake said. This employee benefit helps to decrease turnover and improve overall employee morale, two things that every business owner is concerned with.

“Employee morale is not a finish line,” Ruddell said. “It is an ongoing process. Whether it is great, so-so, or in the toilet it can always be improved.”