Does your hospitality business have a high staff turnover? Are you spending money on constantly recruiting new staff when you could be making more profit?
If so, you’re not the only business that has this problem.
It’s an employee’s market and you’re competing with lots of others to attract the right staff.
If you’re stressing about trying to cover your rota or have anxiety when you see your outgoings, then an employee-centric culture could help you.
What is Employee Culture?
Employee culture is unique to your business. It’s what it’s like to work in your company and the environment you create for your staff.
Why Company Culture is Important?
Your employee or company culture can make a huge impact to the success of your business.
For food businesses, in the first year 85% will survive, but by year five it’s just 50%.
One of the reasons small businesses fail is because 23% found they didn’t have the right team.
Your company culture can dictate your staff turnover, customer satisfaction, and revenue.
If people don’t enjoy working at your company, then they won’t go out of their way to work hard or stay if they can go elsewhere.
A recent study by Deloitte found 94% of executives and 88% of employees think a distinct workplace culture is important to organisational success.
What Does an Employee-centric Culture Mean?
Having an employee-centric culture may seem complicated but it simply means putting your employees at the heart of your business.
When you make decisions, you think about the impact they will have on your staff.
People centric means putting the people in your organisation first and employee-centric means putting your employees first.
Because if they’re happy then it’s highly likely your customers will be happy, and you’ll be happy too.
What are the Benefits of an Employee-centric Culture?
Increase in Productivity
Studies have found that employee-centric companies lead to an increase in productivity.
A highly engaged workforce showed a 17% increase in productivity in a study on employee engagement.
It makes sense that happy employees will take more pride in their work.
Highly engaged staff have been shown to exceed performance expectations by 10% and ones that are highly engaged and enabled are likely to outperform expectations by 50%.
If your staff are more productive, your business will be more efficient, and you can reduce costs and take advantage of opportunities.
Increase in Profitability
Employee-centric businesses have been shown to impact your bottom line.
If employees are more productive, then it enables higher profits. It also reduces costs on staff turnover and sick pay.
A study on employee engagement found companies with a highly engaged workforce were 21% more profitable.
Improves Customer Satisfaction
When your employees are happy, they stay longer and become more experienced at their job. This means they are better at helping customers and get quicker at doing so.
Research shows that employee-centric organisations “not only benefits the employees, but in the long-run has positive impact on customers and also contributes to the overall organisational success.”
Reduced Staff Turnover
If your staff are happy then they’re not going to be looking to go elsewhere, like to your competitor.
The replacement costs are 50 to 150% of your employee’s wage, so a high staff turnover costs you more. It also gets rid of staff who are experienced and knowledgeable about your business.
Companies with high levels of engagement have a 40% lower employee turnover rates.
Businesses with high levels of engagement and who enable their employees have a 54% reduction in staff turnover.
That’s a whole lot of money that you’re not shelling out on staff who you’ve paid to recruit and train, just to go elsewhere.
How do you Create an Employee-centric Culture?
Ongoing Training and Growth
Make sure you train your staff properly when they first start. Introduce them to key members of your team, even ones that aren’t in their department.
Set up on-going training and progression through the company. Employees who know they can work their way up to better pay and more responsibility are likely to be more loyal.
Companies that had leadership initiatives and appreciated their employees grew 682% in revenue, but companies without this grew just 166% in revenue.
Which would you prefer?
The culture starts from the top. Management needs to incorporate their vision of the company in the culture and make sure everyone knows about it.
Communicate with staff about what you want to achieve in six months and let them know that they are essential in meeting those goals.
You could even work with your employees to let them create goals for themselves and offer incentives for those who achieve them.
Invest in Tech
No matter what industry you’re in, technology is increasingly important to a more efficient business.
From digitalising your HR process to email marketing. It not only makes your employees life better by not having to do repetitive tasks, but it helps you make your business more efficient and increase revenue.
Not only that but with increasingly tech savvy staff, research shows they might leave if they have to use outdated systems.
Clean and healthy work environments not only make a good first impression to customers, but they increase your staff’s productivity and cut down on sickness.
Office buildings with higher carbon dioxide levels showed decreased performance.
An untidy workspace affects how your staff feel, with 52% reporting a tidy and organised workspace made them more productive and 48% reported they felt happier.
Unclean environments tend to have higher levels of infections which lose an average of 30.4 days of productivity due to sickness absence.
A clean environment will also cut down on security issues, such as files going missing. These types of incidents cost businesses $15.38 million in 2021.
Make sure you encourage staff to keep a clean workplace by placing hand washing signs above sinks, providing cleaning products, and encouraging a clean culture.
Valued and Appreciated
A massive 79% of employees who quit their jobs, reported a lack of appreciation as the reason.
And 69% of employees said they’d work harder if they were appreciated more.
This can be done by simple things such as celebrating an employee of the month or taking feedback from your staff.
Follow these tips and start implementing them today in your business to improve your employee satisfaction.
Your staff are on the front lines of your business, dealing with customers, and impacting your revenue.
They should feel they play a vital role in your business and when they do, the business in general can be more successful.
Check out our range of cleaning supplies that can help you reduce sickness, costs, and retain staff with a welcoming workplace.