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"Making profits sounds very capitalistic and not very people-oriented. But you can't pay people, you can't reward them, and you can't retain them if you don't make money."
- Roger Blethen, CEO, LTX Corp. |
It's important for employees to understand how their individual duties fit into your company's big financial picture.
Here are a couple of ways to ensure that your staff members keep the company's bottom line in mind:
Ask each employee to write his or her own job description to explain how that employee makes money for the firm. Supervisors can help staff members fine-tune these descriptions. In time, managers and their staffs will be able to discuss each work assignment in terms of how it relates to company profits.
Urge every employee to write a brief description of what your company makes or sells. Ask them to cast their descriptions in terms of various company goals, such as quality, customer retention and increased customer referrals.
Make your employees aware that these exercises aren't just busywork, but that you value their ideas and notions about how they contribute to the firm's financial success.
For that matter, you can turn the project into a contest. Consider giving an award for the top three entries, perhaps a lunch out or a night on the town. It's a great way to motivate employees to earn more money for the company - and ultimately for themselves.
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Create New Profit Centers
Don't be satisfied with the money you're earning from your core business activities. Make a list of ways that you can squeeze extra profit from every facet of your operations. Here are just a couple:
Encourage sales and front-counter staff to jot down the questions that customers ask most often. Then, train your staff to answer those questions uniformly. You'll get more repeat business, as well as vital information you can use to add value to your products.
Train line managers to measure the time it takes to perform various tasks. Based on that information, calculate a reasonable average time per job - allowing, of course, for emergencies and breakdowns - and urge employees to perform within those deadlines.
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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