Are you paying your staff enough, so that they not only stay but are engaged?
Go ahead, look on Google. Searches for people willing to move for higher salaries or better working opportunities have exploded. The “Great Resignation” is in full swing and national. Even non-California companies such as Dolly Parton’s Dollyworld Resort pay for full tuition as part of all employee’s compensation. It’s not only in SoCal. It is everywhere.
This impacts who stays working for you
How are you going to handle this as a business owner? Failure to address the seriousness of total compensation is the difference between 5:00 pm and 5:01 pm. At 5:00 pm, they are still in your office. However, they are interviewing for a new job across the street at 5:01 pm. They had heard that company could refinance student loans for employees. Maybe, they would pay for college or graduate school.
It is common for companies to pay full tuition, but there are usually employee requirements to get the benefit. First, the employee often must complete either the class or the full course program. Second, the employee must stay a minimum amount of time at the employer in their current or enhanced position.
This can create a dilemma for smaller business owners. How can you afford to pay for this when cash is already pinched by other increases in costs?
One way is that you can create a program where you amortize the tuition costs over the time employed. The amortization time window is then tied to a line of credit so that cash flow is not affected by sudden needs to pay lump sums.
Treat Employees as Assets & Advantages (not costs)
You maintain your copier, machine tools, and building. Knowledge, a like building, depreciates over time. Do you maintain your employees as well as your facilities? They are your most important asset.
Richard Branson says: “Take care of your employees and they’ll take care of your business. Healthy, engaged employees are your top competitive advantage.”
We agree.
You can keep your best people there, by creating a facility that matches the employee’s lump-sum needs with your cash flow.
Next week, we will discuss the details. Feel free to share the ideas with your employees and management.
Engage with them, so that they better engage with your customers. Better engagement = more profit.
Everyone wins.
Photo by Karolina Grabowska on Pexels