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Your employees or associates are the best gauge of what is really happening in your company. – Image Credit Unsplash+
Subject to your year end, Q4 is normally budget time.
The revenue projections are the primary driving force but quickly we look to the expense side to ensure our projections for profit.
Payroll is your largest cost center; but how controllable is it really?
One way to make it more controllable is to conduct an employee satisfaction/engagement survey. The results will demonstrate where you may have to consider making changes. And it doesn’t always translate into an increase in wage and salary costs!
As an example, let’s look at this statement: “Considering everything, I am satisfied working for this organization at the present time”. Your result may not look too bad on the surface but what if it is lower than the comparative data. It should cause you to pause to drill down further.
A low score will provide a foreshadowing of higher turnover, which you know is always a costly process with both hiring costs and then the orientation of new team members. This will cost you with lost productivity and unforeseen expenses.
Let’s try another statement: “My Manager in this organization behaves in an honest manner.”
A lower score demonstrates a likely breakdown of trust in the very relationship that is central to a successful organization; a strong supervisor/employee relationship. Will an employee go the extra mile for the organization? This result will suggest a requirement for improved performance of the supervisor; possibly training and development (another expense) or at worst, termination (severance expense).
A survey will provide clues that should be investigated, and expenses can then be anticipated at budget time.
And if the survey results are glowing on a comparative basis, then you can feel confident that your projected payroll costs will not experience a bump.
Your employees or associates are the best gauge of what is really happening in your company.
About John Platz
It’s great to have the opportunity to join with my son, Joshua, to promote a great upgraded diagnostic tool for the hospitality industry.
When he is not spending time with his two children; listening to new music or playing cards, he runs his successful headhunting company based in Toronto, Canada. For my part, it’s pickleball, spending time in Crystal Beach, Ontario, Canada or in our home in Port St. Lucie, Florida or enjoying my board activity with ISB Global Services Inc. But beyond our strong family bond, we are convinced that excellent employee satisfaction increases guest satisfaction which increases profitability!!
Connect with John or Joshua on LinkedIn.
