The cost of living hasn’t decreased, in fact its steadily going up and yet salaries are decreasing and for no apparent reason other than that Companies can find ridiculously qualified individuals willing to take whatever salary they can, which is now driving market rate salaries down.
So, are Companies taking advantage of people’s misfortunes?
1) Be clear what you stand for
A mismatch of values between the organisation and the workforce will cause stress and a sense of dissatisfaction within individuals. How well do your staff understand the values of the Company? I don’t just mean the values shown on the Company website, what are the actual values that you and your employees live by? How are these communicated and are you living them every day?
At MHC Consulting, we work with Companies of all sizes and industries. In our experience, regardless of Company size, when we first speak to clients to ascertain their business pain points, the main issue we hear is "people" – finding, attracting, hiring, retaining and dealing with poor performers. The frustrations currently seem to be pointing at "just how do you manage millenials in the workplace?", a question we are frequently being asked and a challange that Generation X is struggling with.
Companies are certainly going through challenging times now. Many Companies are having to tighten their belts, reducing costs as much as possible whilst at the same time maintaining and often having to exceed the level of service they provide.
A recent article in Entrepreneur Magazine “How to Build a Better Business with Outsourcing” https://www.entrepreneur.com/article/204652 got me thinking, why aren’t more Companies outsourcing their key support services?
This is an ideal time to start outsourcing key functions to specific Companies that specialize in the services they require, allowing for a senior professional to take care of a function on a “charge on hours used” basis therefore saving money. By outsourcing the day to day back-office tasks, the Business Owner has more time to focus on generating income.
Recruitment takes time and can cost a Company money - the cost of getting recruitment wrong is reported to be 15 times the bad hires annual salary!
To quote Anne Mulcahy “Employees are a Company’s biggest asset, they’re your competitive advantage. You want to attract and retain the best, provide them with encouragement, stimulus and make them feel that they are an integral part of the Company’s mission”.
The trick is sourcing talented A Players to join your team ideally with the required level of qualifications and experience. Companies need to recruit for their culture first and skills second, recognising that by offering training to get the employee up to speed technically they will attract A Players to their Company.
Claire takes on the role of an outsourced HR Director for many business owners. On behalf of a client she will get involved in the HR operations of a business and help the business owner make the right decision so that all HR decisions are cost efficient to the business and have a positive effect on the health of the business. As she says in the episode HR does affect a company's Profit and Loss Accounts.