Be ready when employees wonder ‘Should I stay, or should I go?’

If you talk to any business owner today and ask them what their biggest challenge is, they will likely say finding and keeping good people. They would engage you in a long conversation about the challenges they face when losing their good ones and how they have a very difficult time recruiting or finding replacements. This is a time and money drain for any organization.

Don’t wait until your good people leave to learn what it takes to keep employees or why they stayed as long as they did? Conducting “stay” interviews is an easy way to take the pulse of what is happening in your business. If you want more great people, simply ask your current great employees for their input. Stay interviews will help build employee engagement and foster a good culture as you build trust with employees.

How to get started

  • Select a few of your key employees and ask them to participate. You want more of these engaged and honest individuals on your team.
  • Explain why you are asking them to take part: that they are a valued member of the staff and that this is to help you retain and recruit more employees with their gifts and skills.
  • Conduct these stay interviews once or twice each year and do them within the same timeframe. Do not wait until employees become disengaged, or even worse, leave, to understand what’s going on.
  • Make it known you desire their honest feedback. That includes the good, the bad and the ugly. Employees must feel safe to express their opinions and that the manager will have an open mind and not get defensive. They should never feel there will be retribution for any of their comments.
  • Focus on the positives/wins that they express. Create and share your action plan from the results of the stay interviews. People want to know they have been heard and are making an impact.

Following is a list of the best questions to get the stay interview process started. They are open-ended, easy to ask, get the conversation energized questions, and the response will contain valuable insight and make a difference in keeping your employees.

  • What do you look forward to when you come to work?
  • Why do you stay working here?
  • Do you feel that we fully use your talents in your current role? Are their additional talents/interests/experiences that you could offer?
  • What are the frustrations or less desirable parts of your role that you would like to do less of?
  • What is an example of any recent recognition or acknowledgement that you received that increased your engagement to the company?

Make the process a win-win

Stay interviews are an inexpensive and effective way to drive your business improvements forward quickly. The management team receives honest feedback and the employee feels valued and empowered to help make the business better.

Take the feedback and put it into action. Communicate your actions with your company and recognize the impact the feedback has provided. It will be a win-win for both employer and employee.

Do you need additional help and tips for employee retention? Contact your BCN Services representative, your partner for all of your company’s HR needs.

Corey Decker, Sales Manger

Retiring Boomers Continue To Lift Small Business Sales

Sales of small businesses in America remain elevated, according to an updated report from BizBuySell. Specifically, there were 10,312 closed small business transactions in 2018, a 4 percent increase from 2017 and the highest full-year total since BizBuySell started tracking this data in 2007. The report’s authors attributed 2018’s continued acceleration in transactions to a variety of factors, such as strengthening revenue and profit numbers, as well as more people looking to buy and sell.

The uptick in sellers is in part being driven by the aging U.S. population, i.e. Baby Boomers, and 80 percent of surveyed business brokers said that they expect even more Baby Boomers will look to sell their companies in 2019 than in 2018. The main reason for this is that a rapidly growing number of these older Americans who own a business have reached the age at which they will want to stop managing the day-to-day operations of their company. Further, around a third of business brokers and small business owners in a separate BizBuySell survey said that they feel higher minimum wages, rising healthcare costs, and concerns over upcoming regulations are likely motivating many owners to sell sooner rather than later.

Such owners have probably also been motivated by a favorable market that has seen the time it takes for a business to sell fall considerably, along with a 9 percent jump in the median selling price in just the past twelve months. Adding to older owners’ increased willingness to sell is likely a desire to avoid the challenges of managing a company during another recession. Indeed, while there are not any major warning signs of an imminent recession, some sort of economic downturn occurring within the next few years would not be surprising since the current expansion in America has already been going on for more than 114 months, making it the 2nd-longest on record and more than twice the historic average (48-months).

For some owners, passing on the management responsibilities, along with ownership, to one’s children is another option, but many may instead wind up simply selling their company to an outsider. Why so? There are several potential answers to that question but one reason could be to help fund retirement because roughly one in five Baby Boomer small business owners in a recent SunTrust poll admitted that they are still not financially prepared for retirement. In fact, an earlier FPA/CNBC study on succession planning found that more than three-quarters of surveyed small business owners plan on selling their company in order to satisfy 60 percent to 100 percent of their old-age income needs.

Such a large dependence on a single asset could put the financial security of these soon-to-be retirees in a precarious situation should their company not sell for the price they had anticipated (and developed an old-age budget around). Just as stock market investors should diversify the equities they hold in their portfolio, small business owners should aim to diversify their retirement savings vehicles (401(k)s, IRAs, real estate, etc.), and in turn lessen their overall sensitivity to the eventual selling price of their company.

 

Copyright @ 2019 Slavic Investments (http://blog.slavic401k.com/retiring-boomers-continue-to-lift-small-business-sales-1). Republished with permission.