Employees are the driving force behind your organization and are responsible for the daily operations of the company. As valuable resources, employees are impacted the most by new policies, procedures, or other changes in the day-to-day operation of the company.
As seen by the NBC documentary series, Undercover Boss, plans to increase productivity and cut costs may have the opposite effect. Miscommunication is a growing concern amongst larger corporations, as workers feel disconnected from their superiors. Communication with management should not be a one-way street, rather, employees and managers interacting to provide the best quality of service to their clientele.
Employee feedback increases productivity through cost reduction because employees have more experience regarding the daily operations of the company. Managers make cost reduction decisions based on studies, reports, and charts whereas employees provide feedback based on actual operating conditions. While all employees would like an hour lunch, most take the time to provide thought-provoking information to streamline operations. Increased revenue within the company provides employees with job stability and confidence. After all, the best cost reduction plan eliminates waste rather than laying off employees.
The Human Resources department or hiring manager should facilitate the process of obtaining employee feedback and analyzing cost reduction outcomes. Surveying employees is the most common way to retrieve information, however; personal interviews, daily communication, and improvement boxes work as well. Computers and technology streamline the process by providing online surveys with automatic analysis. Companies tend to survey employees after major restructuring or changes. However, it is best to solicit feedback during relatively calm times. When business is slow, employers have additional time to review and implement the feedback.
While there are related expenses associated with compiling and soliciting employee feedback, recent studies by the Employer Involvement Association indicate that each usable employee suggestion saves the company $6,224 in operational expenses. The savings can be used towards employee compensation, reducing debt, and implementing additional employee programs. Reducing non-disciplinary terminations within an organization boosts employee confidence and affects the overall morale of the employees.
When employees feel connected to management they are inclined to perform to their fullest potential by increasing customer satisfaction rates and showing up for their shifts. Additionally, employees are less likely to leave the organization if they feel a direct connection to their boss and coworkers. Higher retention rates decrease costs associated with hiring and training a new employee. Healthy relationships within the organization save thousands of dollars each year, supporting cost reduction efforts.
Safety within an organization should be a top concern for management, however; the topic is often overlooked when soliciting feedback. Ensure that the working conditions encourage a safe and healthy lifestyle. For example, if employees do not have time to take a full lunch, they could be forced to eat fast food, which could increase health insurance costs down the road.
Maximize the effectiveness and cost reduction abilities of employee feedback by offering a personalized approach rather than using a standard template that has not been modified to meet the needs of your organization. Avoid cookie-cutter forms, templates, and other documents, as they will not fit your needs. Each company is unique and requires different evaluation mechanisms. Avoid obvious or one-word answers by asking meaningful questions that are thought-provoking. Generic questions will receive vague responses that will not produce profitable changes.
Use a variety of assessment techniques, such as multiple choice and open-ended questions. Multiple choice, ranking, and matrix questions enable the data to be analyzed quickly and objectively whereas open ended questions require administrative review and subjective summaries. Encourage everyone in the company to participate in the process, including part time, temporary, and independent contractors. Warehouse workers, in-house service providers (i.e. cafeteria or janitorial workers), and delivery drivers are an integral part of the organization and deserve attention.
Depending on the length of the assessment, give your employees adequate time to complete the task. Encourage them to complete the survey at home or off site, which increases productivity and strengthens cost reduction efforts. Doing the survey at work may add bias to the results, as well as distract them from their responsibilities. Electronic assessments are easier to administer and minimize excuses such as losing the piece of paper. Additionally, electronic distributions reduce paper and clerical costs associated with the assessment. Most electronic options offer automatic analysis of objective answers and format the subjective answers in an easy-to-read work flow.
The number of employees who participate in the survey is representative of the morale within the company. Traditionally, respondents are either extremely pleased or dissatisfied with the business. Encourage everyone to submit responses by offering a raffle ticket to those who participate. Strengthen cost reduction efforts by keeping the prize small or an internal incentive. Avoid responding to employees directly after receiving their assessment, unless their responses exhibited dangerous or threatening verbiage.
The best and most effective reward is to recognize your employees for their ideas and to then use them. Also, it’s best to acknowledge the person who submits an idea at no later than 24 hours after they submit it and an initial decision about the validity of the idea no more than three days after they summit the idea. This will boost the amount of ideas you receive.
Once the company has received the assessments, delegate the task to an unbiased person. The assessments are only worthwhile if you know how to synthesize the data and make the appropriate adjustments within your organization. Develop a list of the top ten most common concerns within the organization. Analyze and review the individual problems, sorting them by monetary value (for cost reduction analysis). Work with the respective departments to create cost reduction solutions that improve employee satisfaction.
Employees make suggestions because they want to see their ideas implemented within the organization. The most successful and efficient suggestion systems indicate that once employers adopt their ideas, additional feedback pours into the office, increasing productivity and profitability. The best way to receive more suggestions is to use and implement the suggestions you receive. Employees who feel they are part of the solution experience higher retention rates and are invaluable business assets. Recognize employees for their extra efforts, and reward them by using their ideas.
great post as usual!
Good dispatch and this mail helped me alot in my college assignement. Thanks you seeking your information.
[...] ? Once the initial energy rush of telling people about your dream and the plans to make it real starts to fade, a different feeling starts to flood in. cost containment [...]