Search Results for: retention

Three workplace performance indicators that may make or break you 0

Want to find out how your business is performing? Setting and analysing performance indicators for your company is the best way to forecast and get on track with your business goals. Creating Key Performance Indicators will help you measure your company’s success. While choosing the right KPIs relies upon a good understanding of what is important to the organisation and its workplace , the question is what to focus on? Performance measurement is not just related to collecting data associated with a predefined performance objective or standard. It has to be considered as an overall management system involving prevention and detection in order to meet clients expectations of the service or product you’re offering. Many companies have different methods regarding performance measurement, so how you measure performance says a lot about your company’s objectives and will decide whether they make or break you.

There are two common types of performance indicators: financial and customer focused.

Financial indicators are the most commonly used metrics for performance including: revenue growth rate, net profit, return on investment, among others. In terms of employee performance these are often quantified using output related measurements. These can be useful for growing your company’s finances but companies that focus solely on profit related indicators often face an innovation problem.

A focus on financial goals can put pressure on managers to focus on short term profitability over creativity. Financial indicators also don’t provide a full picture of a company’s performance. Rather than taking risks on new ideas, these companies can become known for creating ‘one hit wonders’ that sell and repackaging past successes. Eventually, quality and customer satisfaction can become compromised and employee motivation drops.

Microsoft learned this lesson at the expense of its top spot in the tech world. Originally a leader in cutting edge technology, after 2000 it began slipping in the rankings against companies like Google and Apple with its inability to keep up with new trends. As these companies began producing paradigm shifting products like the iPhone and Google Maps, Microsoft continued to survive off of its updated versions of Windows Office. Financial indicators demonstrated the company’s shift in popularity but not the contributing factors.

Internally, Microsoft had taken a cut throat approach to performance management called stack ranking. In this system employees were ranked according to their performance, with the top being put in line for promotions and the bottom 5-10% being shown the door. Rather than boosting productivity, this system merely increased competition and discouraged teamwork. Ultimately, instead of being encouraged to collaborate on new ideas, employees had to focus on gaining favor to survive.

Customer success indicators are increasingly seen as the most important performance metric. Some of the main customer centred KPIs include: conversion rate, customer retention, Net Promoter Score (NPS), etc. Due to differing objectives, companies that focus on customer centred indicators focus more on gaining a loyal customer base by producing great quality products, utilizing different marketing techniques and emphasizing a strong customer support service.

CaptureAn example of this is Riot Games’ ‘Free To Play’ games which helped them to gain a loyal customer base by allowing gamers to play some of their best games for free online. Zappos’ customer service is famous for providing unsatisfied customers with gifts and free shoes to improve their customer experience. Creating a customer service culture is an essential part of their business strategy and the focus of CEO Tony Hsieh’s book Delivering Happiness.

However, for companies that don’t take off straight away, the money and time put into each product can lead to slower profit generation and financial instability. Furthermore, while customer satisfaction is an extremely important key to success, what customers ultimately want are state-of-the-art products. Though customer focused indicators can help you build a loyal client base, they do not necessarily solve a company’s innovation problems.

Companies should use a combination of both financial and customer focused indicators but there is a third key measurement which is essential to meeting your company’s goals.

Why employee centered indicators are so important

More and more companies are beginning to realize the importance of employee centered metrics. These types of indicators include: employee engagement, satisfaction and turnover.

Studies show that higher employee engagement is linked to higher customer satisfaction. When employees are happy at work and believe in their product/company this comes across to customers. Gallup revealed that companies with high employee engagement levels outperformed companies with lower levels of engagement in customer ratings by 10%.

Engaged employees take less sick days. A study by Workplace Research Foundation found that engaged employees take an average of 2.69 sick days annually compared to disengaged employees who take an average of 6.19 days. Most important, they’re motivated to achieve more. Gallup’s study also showed that engaged companies outperform others in productivity by 21% and profitability by 22%.

In fact, the treatment of employees is also an important factor for consumers. Deloitte’s 2015 study on millennials revealed that this generation considers the treatment of employees as the top characteristic of industry leaders, even over profit generation and impact on overall society. Furthermore, “While they believe the pursuit of profit is important, that pursuit needs to be accompanied by a sense of purpose, by efforts to create innovative products or services and, above all, by consideration of individuals as employees and members of society.”

Companies that have employee centered strategies are also more likely to foster innovative environments that promote autonomy and employee ownership. Atlassian became famous for its ‘Shipit’ days during which it actually encourages employees to drop their work and spend twenty-four hours on a creative project of their choice. Allowing employees the freedom to try out new ideas sounds like a great financial risk but it turned out to have great returns. The projects developed during these sessions have resulted in some of the company’s most profit generating products. Atlassian not only dominates Australia’s tech industry, it has also been named the best company to work for the past two years in a row.

More and more companies have started focusing on an employee first strategy: In an interview with Inc. Virgin Atlantic CEO Richard Branson disclosed that the company puts staff first, customers second and stakeholders third. He explains, “If the person who works at your company is not appreciated, they are not going to do things with a smile.” Southwest Airlines, the company consistently reaching the top 10 in employee and customer satisfaction surveys, follows the same ideology. The company does this by motivating employees through its company values and creating an environment that regularly recognizes employees for going above and beyond.

Southwest Airlines follows the same strategy. Founder Herb Kelleher posited, “A motivated employee treats the customer well. A customer is happy so they’ll keep coming back, which pleases the shareholder. It’s just the way it works… They can buy all the physical things. The things you can’t buy are dedication, devotion, loyalty—the feeling that you are participating in a crusade.”

The workplace is not just about the play, but the stage too

The workplace is not just about the play, but the stage too 0

Four-Front-G-Adventures-mattchungphoto-lo-res-2-6-2Why is it that just about every article I read talking about the value of workplace design, almost always ignores the broader context of the building and precinct in which the workplace is located? Similarly, almost all conversations extolling the virtues of remote working, love to predict the extinction of the office and diminish its relevance as an important contributor to the operations of a successful business. Personally, I have yet to find an acceptable substitution for face to face communication. It is just not possible for clear, consistent and unmistakeable communication to occur over email, text, phone or skype. The ability to be able to read someone’s body language, grab a pen and paper to draw a diagram, point to an example, empathise sincerely with a colleague, customer or collaborator’s struggles with complex concepts, is just not possible to do quickly, effectively and efficiently without face to face communication.

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Skilled migrants attracted to regional and city work hubs, not countries

Skilled migrants attracted to regional and city work hubs, not countries 0

dubai-commercial-market-outlook-winter-2015-2016-carouselHighly-skilled migrants are increasingly attracted to cities and regions rather than countries, the latest Global Talent Competitiveness Index has revealed. Silicon Valley, Dublin, Helsinki-Espoo, Dubai [pictured] and London are the real hubs, rather than the United States, Ireland, Finland, the United Arab Emirates or the United Kingdom. The index, produced by Adecco Group, INSEAD and the Human Capital Leadership Institute, ranks the factors driving the international movement of skilled migrants of 109 countries, covering 87 percent of the global population and 97 percent of global GDP. Switzerland is in top place, followed by Singapore and Luxembourg in second and third place. At seventh place, the UK is ahead of Germany and France, but behind top performers such as the United States and Canada. It also trails behind in terms of gender diversity; ranking 56th for female graduates and 71st for the gender earnings gap.

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From workplace wellness programmes to a positive workplace culture

From workplace wellness programmes to a positive workplace culture 0

wellnessResearch presented at the recent 2015 Global Wellness Summit (GWS) titled “The Future of Wellness at Work” forecasts that workplace wellness investment will “explode in the next 5 to 10 years”. Results from the research revealed that 87 percent of employees surveyed feel disengaged at work, with 38 percent experiencing excessive pressure and stress. Despite more than half of the employees having access to a structured wellness “programme” only three out of ten actually use it in practice. The generally human resources led workplace wellness programs perform poorly because they don’t always address the issue at hand. They instead choose to focus on health issues experienced outside of work, rather than looking internally at the workplace itself. The design of an office has been proven to have a material impact on the health, wellbeing and productivity of its inhabitants.

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Boardroom now more likely to view offices as strategic asset, claims report

Boardroom now more likely to view offices as strategic asset, claims report 0

Office designA new research paper claims to reveal changes in the way that UK companies now perceive and evaluate their commercial property portfolios – both as a physical workplace and as a strategic asset that can help them to meet corporate goals. The report, entitled Redefining Commercial Property Performance – The alignment of property and workplace with corporate objectives was written by Insight’s own Sara Bean and was commissioned by managed office solutions provider Portal. As part of the research, interviews were conducted with property professionals, workplace consultants and occupiers including RICS, Leesman UK, TD Wealth International, TSK Group, Cushman & Wakefield and Sheffield Hallam University. The findings of the paper claim to reveal the growing importance of measuring the performance and return from commercial office space and the necessity to more closely align property with corporate goals.

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Six human resources costs you might avoid by choosing the right office

Six human resources costs you might avoid by choosing the right office 0

1573_24-04-2015_8503According to a report from Colliers International, the majority of commercial office space in Australia and New Zealand is occupied by government departments and firms working in the business services, finance and insurance sectors. Other than government and the Not for Profit (NFP) sector, a prime motivation for every CEO, business owner and manager is the search for increased profitability. In most instances, a business has three pathways to increasing profitability. The first is through increasing turnover or sales (assuming the cost base remains equitable), the second is through reducing costs, and the third is by improving productivity. I have previously written quite a lot about the relationship between office space and productivity increases, but this article will explore one of the most insidious elements associated with any businesses cost base (including government) and that is staff turnover.

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Employees and managers value holidays and flexible working differently

Employees and managers value holidays and flexible working differently 0

HolidaysIt’s become an accepted piece of wisdom that at the top of every employee’s wish list when it comes to their working conditions is more flexible working. That might be not entirely true according to a new study of employees and managers carried out by recruitment firm Robert Half. The report suggest there is a significant mismatch between what employees want and what employers think they would like when it comes to holidays and flexible working and other conditions. Topping the wish list for employees is more holiday and annual leave, ranked most popular perk by almost four in 10 (38 percent) respondents and ahead of more flexible working hours (28 percent), more training or professional development opportunities (16 percent), home working/telecommuting (12 percent) and other corporate services such as ironing services or fitness centre (3 percent).

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Dog-friendly offices more appealing to Millennials than play rooms

Dog-friendly offices more appealing to Millennials than play rooms 0

Dog in officeOnly a third of US workers believe that promotion offers the potential to advance their career with more than a third of all workers and 44 percent of Millennials preferring to jump ship if the right opportunity arises. Addison Group’s second annual generational workplace survey found that regardless of generation, healthcare benefits was most important benefit (70 percent), followed by a high salary (59 percent). However, Millennials would choose one company over another that paid a higher salary if free meals, beverages and snacks (40 percent) and tuition reimbursement (36 percent) were provided. Millennials also rank a dog-friendly office (14 percent) higher than a napping room, concierge services and a play room with ping pong, billiards and video games. They also value the social aspect of the workplace highly, with nearly twice as many (15 percent) marking work-sponsored happy hours as important compared to Baby Boomers (8 percent).

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Employers get flexible as retirement age for baby boomers draws closer

Employers get flexible as retirement age for baby boomers draws closer 0

RetireNearly three quarters (74 percent) of finance directors are concerned that the skills gap resulting from widespread retirement of baby boomers will have a negative impact on their organisation over the next two years and an even higher proportion (77 percent) say that the departure of older workers will have a negative impact over the next five years. The new research from Robert Half UK reveals that UK employers are anticipating a significant skills gap when baby boomers retire over the next two to five years and are already taking steps to mitigate the risk.  Baby boomers represent a bulge in the workforce that will soon be at retirement age so not only will employers need to consider the impact of the skills shortage that this mass-departure will create, but they will also have to accommodate different demands and expectations from younger Generation X and Y workers coming to replace them.

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UK productivity undermined by rule-heavy workplaces, claims report

UK productivity undermined by rule-heavy workplaces, claims report 0

CaptureEmployers can unleash the productivity of their workers by allowing them more scope to use their initiative, create more stimulating work and reduce the burden of unnecessary rules and procedures, according to a new report which considers productivity from the employees’ perspective. The latest Employee Outlook Survey from the Chartered Institute of Personnel and Development (CIPD), surveyed over 2,000 UK employees, asking what enabled them to be most productive. The most common responses were interesting work (40 percent), being able to use their own initiative (39 percent) and being given tasks which complement their skills (25 percent). On the other hand, the most common hurdles to employee productivity were unnecessary rules and procedures (28 percent), not having the resources available to do their jobs (28 percent) and office politics (24 percent).

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Firms use workplace improvements to invest in their human capital

Firms use workplace improvements to invest in their human capital 0

peopleA survey by CoreNet Global and Cushman & Wakefield claims that 88 percent of EMEA corporate real estate professionals are actively investing in workplace improvements, and 95 percent are addressing workplace technology as part of those upgrades. The results emphasise the importance of human capital, suggesting that factors such as office environment, flexible working and company culture continue to be seen as critical to attracting and retaining talent. The global Talent Agenda Survey, completed by 250 respondents, addresses how occupiers are managing their talent pool against an ever-changing and unpredictable business environment. The survey focused on categories such as the cost of human capital and its value; the key challenges relating to talent access, assembly and retention and the critical role that real estate plays in workplace innovation, efficiency and talent retention.

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UK firms turn to flexible working and wellbeing to bridge productivity gap

UK firms turn to flexible working and wellbeing to bridge productivity gap 0

flexible working womanIt’s not just larger organisations and governments that are having to grapple with the UK’s persistent ‘productivity puzzle’ but also smaller businesses who are increasingly turning to flexible working and other people centric initiatives to address the problem. That is one of the main findings of a new report from trade association Group Risk Development (GRiD).  According to their survey, nearly a quarter of employers (23 percent) believe productivity is an issue facing their business.  According to the office for National Statistics (ONS) this is a common problem across the entire UK economy as output per hour is stubbornly around 20 percent below the average for all G7 economies. This is the widest gap ever recorded and, according to GRiD is driving employers to seek ways of addressing their own shortfall with flexible working and wellbeing initiatives as well as investment in new equipment and technology.

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