A Pandemic, Employee Turnover, Supply Shortages, and Increasing Costs – Where is the Hope for Business Owners?

In June 2021, The Predictive Index surveyed 1,906 employees from more than 15 different industries. The goal was to understand what exactly is contributing to the “Great Resignation,” and see whether managers impact employees’ decision to stay or leave. Not surprisingly, the “Great Resignation” originated in the service industry as numbers of employees were dealing with Covid-19 issues such as face-to-face interactions, health and safety concerns and closings. But even as other industries along with the service industry began to return to on-site operations they all started encountering retention issues. The research conducted by The Predictive Index discovered it is less to do with safety concerns as it does with management issues and employee engagement.

The study found that nearly one in two respondents have considered a career change in the past year. When asked why, the surprising answer was not that they feel unsafe returning to the on-site place of employment but more that it had to do with their managers. Of those respondents who said they had bad managers, 63% considered quitting in the next year and 70% also responded that their coworkers are considering leaving as well.

No one can deny that the past two years have been tough for anyone in management. A lot of decisions and actions regarding operations of any type of business has been challenging. Trying to keep safety protocols in place, constant staffing shortages due to Covid sickness and employee turnover is enough to drive any manager crazy. Even the best of managers have difficulty when it comes to keeping employees engaged, motivated and highly productive in the best environment but add the challenges of a pandemic, supply shortages, increasing costs and employee turnover to the mix and you have what could be felt as a hopeless situation.

When it comes to employee retention, there is hope. Some relatively simple actions on a business owners’ part can make all the difference in turning things around. Here are the following key ideas to consider:

  1. Consider having an assessment of the current hiring process. Does it include recruiting in the right venues for the type of employees needed? Does the position have a job description and has the key criteria for a good fit been thought out? Are behavioral interview questions used as well as functional questions? Are personality or behavioral assessments used? A well defined and organized hiring process is key to hiring the best employees.
  2. Create an effective onboarding program that ensures the new employee meets their team, understands the mission, values and policies of the business. A positive onboarding experience will build confidence, trust and positive impact with a new employee.
  3. Consider investing in training workshops for employees that show exceptional leadership qualities and potential. Topics such as Effective Communication, Coaching Excellent Customer Service, Emotional Intelligence, Trust, Conflict Management, Effective Supervisory Skills, and Time Management are all good solid foundations for an emerging leader to have.
  4. Finally, team building can increase employee engagement on the job. Employees that feel isolated or believe that no one has their back are much more likely to leave. An employee is highly likely to stay with a company where they feel that they have coworkers that they trust and work well together.

Businesses that invest in their employees development have a much higher chance of recruiting, hiring and retaining employees that stay for the long term and become a high performing team. This of course, in turn, results in a highly productive and profitable business for years to come.

Emotional intelligence

7 Reasons Why Emotional Intelligence Is Important For Leadership Effectiveness

Emotional intelligence is defined as “the ability to understand and control your own feelings, and to understand the feelings of others and react to them in a suitable way.”

Exceptional leaders are aware of how they lead and are able to govern their emotions effectively. They are also able to help those they lead, comprehend and deal with their feelings in a very enabling manner. Meaning, they have emotional intelligence.

The following are 7 reasons why emotional intelligence is important for leadership effectiveness:

1. Considerate

Emotionally intelligent leaders do not fear the feelings or sentiments of the individuals they lead. The bottom line of the organization is not the only focal point. Emotionally intelligent leaders’ approach to growing a business is caring about their workers as well as any individual who does business with them.

2. Efficient Communication Skills

Leaders who have efficient communication skills frequently talk about what they aspire to do with the people they lead, to ensure that those around them have a similar understanding of their vision. As such, workers who are regularly informed of what is expected of them, are generally able to perform their tasks more efficiently. 

3. Self-Awareness

Self-awareness helps a leader identify their strengths and weaknesses. Consequently, this helps them have clarity when it comes time to hire personnel. They are able to hire individuals who perform well in capacities where the leader needs insightfulness.

4. Self-Respect

As a leader it is important that you not only show respect to others, but you should respect yourself as well. A self-respecting leader is mindful of how he or she speaks to others even when they do something wrong. The manner in which you treat yourself is how those you lead will treat you.

5. Authentic

Being able to express who you are based on your core values and beliefs is a key quality of emotionally intelligent leaders. In other words, being real, knowledgeable about your values, and acting from your beliefs.

6. Self-Confidence

During emergencies it is imperative that leaders demonstrate calmness since everyone takes their cue from them. In other words, if the leader is out of control and panicked during a crises, those around them will follow suit. On the other hand, when a leader exudes self-confidence and remains calm, those they lead are more apt to respond to emergencies much better and with the same temperament.

7. Sense of Humor

No matter what position you hold in an organization or anywhere, especially leadership, being serious all the time forms a harsh environment. Lighten up. Having a sense of humor will not diminish your ability to lead effectively. A genuinely perceptive leader is able to maintain an equilibrium between the two. Individuals will in general, perform their tasks better and more judiciously when there is a feeling of humor. Humor also boosts morale.

Assessing Your Organization for High Performance

All organizations are perfectly designed to get the results they get.

How clear is the direction of your company right now? How well do you understand the critical opportunities and steps needed to take your company to the next level? How well does your team understand the strengths and weaknesses of the business? How effective are changes in only one part of your organization without understanding or considering changes to the whole?

The assessment of an organization’s health and the diagnosis of problems must precede any development or change of plans to improve the health of that organization. If you want to improve your business, you must first find out what it working and what is not working. This allows you to make intelligent and conscious decisions about how to improve it.

When starting a business most people do not aspire to achieve mediocrity. One would hope to start a business and be the best at something, right? A bakery store may want to be know for the best donuts in town, an insurance company would want the reputation of being able to offer the best policies to their clients and save the most money, a car dealership hopes to be the one place that everyone buys and services their vehicles and so on. Most people do not go through the trouble of running a business for the sole purpose of breaking even, agreed?

Businesses are living systems, dependent upon its external environment for survival. As a living system, an organization is “open” to influences and transactions with it environment. The Transformation Model seen here provides a framework for viewing an organization as a living system. Using this model, leaders can see how the pieces of the organization fit together and then make conscious decisions about how to improve their effectiveness. The model reduces organization complexity to seven key elements: Results, Environment, Strategy, Core Process, Structure, Systems and Culture. These seven elements are viewed as a whole system of interrelated parts which must fit together and be closely coordinated if the organization is to be successful. High Performance can be built into every aspect of the business by using the model to guide a comprehensive and integrated approach to change.

The seven elements of this model form the “big picture” of the organization. The first step is to analyze and understand each of the elements in order to know what is working or not working in the organization and how the elements are affecting each other. The next step is to adjust or redesign the elements so they are better aligned to the strategy and to each other. Using this Transformation Model to analyze and realign the organization will improve key results and lead to increased effectiveness. For more information on how you can use Modlin Business Solutions to walk you through this process, fill out the contact form and someone will contact you. You can become a High Performance business with increased productivity and profitability starting today.

Will Your Business Survive 2020?

2020 started with the highest economy and lowest unemployment in years and then it all changed with COVID-19. That is not new news to anyone who has been watching television or following social media. No matter what side of politics you are on there is one thing that all business owners should be asking themselves right now and that is, “Will my business survive this year?” A better question that business owners need to ask themselves is not only will they survive this year but will they THRIVE for many years to come.

Although it may sound cliché, the truth is that leadership has everything to do whether a business will thrive for many years. Businesses rise and fall due to the people who lead. Successful businesses are led by leaders who take time to reevaluate, assess and strategize. If a leader doesn’t look to see where they have been, where they are now and where they want to go then most likely that business is only going to be around for a short time.

The high performance coaching model helps organizations view themselves as a living system. Leaders can see how the pieces of the organization fit together. They can then make conscious choices about how to improve effectiveness. The high performance coaching model breaks down organization complexity into seven key elements: Results, Environment, Strategy, Core Process, Structure, Systems, and Culture. The elements are viewed as a whole system of interrelated parts which fit together and coordinate for success. High Performance is built into every aspect of the organization by using this model to guide a comprehensive approach to change.

A High Performance Coach is a valuable resource for business owners to use and work through this process. Modlin Business Solutions can provide High Performance Coaching to get you going forward. Give us a call today and learn how we can work with you to become a business that will THRIVE not only through this year but for many years to come!

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