Low Unemployment Rates Can Spell Trouble For Franchisees

By: Kendall Rawls | 4,871 Reads | 19 Shares

%3Cp%3EUnemployment+rates+are+at+an+all-time+historic+low.+This+is+good+news+for+many+multi-unit+franchisee+owners+because+their+people+are+sticking+with+them+and+not+jumping+from+job+to+job%2C+right%3F+Actually%2C+it%27s+just+the+opposite.+Multi-unit+franchisees+and+business+owners+alike+should+heed+warning+because+the+competition+to+recruit+the+best+employees+is+as+tight+as+it+has+ever+been.+With+more+jobs+available+it+means+that+unhappy+or+unengaged+employees+could+be+looking+for+a+better+company+fit.%3C%2Fp%3E%0D%0A%3Cp%3EWe+all+know+the+cost+of+losing+a+key+employee+is+more+than+just+the+dollars+and+cents.+When+they+leave+they+take+with+them+the+intangibles+that+are+hard+to+replace%2C+including+history%2C+knowledge%2C+and+expertise.+There+is+also+the+disruption+to+the+business+and+profitability+when+a+key+employee+leaves%2C+not+to+mention+the+shock+to+you+as+the+owner+because+you+had+no+idea+they+intended+to+leave.+And%2C+to+be+fair%2C+they+may+not+have+been+actively+looking+but+when+the+job+market+is+as+tight+as+it+is%2C+competition+is+not+just+going+after+your+customers.%3C%2Fp%3E%0D%0A%3Cp%3EIn+order+to+protect+yourself+from+an+unexpected+departure+or+from+competitors+poaching+your+key+talent+you+have+to+ensure+you+have%2C+or+are+willing+to+build%2C+a+winning+culture.+No+longer+are+salary+and+title+enough+to+attract+or+encourage+key+talent+to+stay.+You+have+to+create+an+environment+where+employees+want+to+work.+With+that%2C+all+businesses+have+either+an+implied+or+expressed+culture+which+influences+employee+commitment%2C+performance+standards%2C+and+accountability.%3C%2Fp%3E%0D%0A%3Cp%3EIn+an+implied+culture%2C+you+will+often+find+that+individuals+create+their+own+interpretation+of+the+behavior+and+attitudes+required+to+please+their+respective+supervisors.+Simply+stated%2C+employees+in+these+situations+will+do+whatever+necessary+to+survive.+This+creates+an+environment+of+self-interest+rather+than+one+where+an+employee+feels+they+are+valued.+Every+department+or+leader+creates+their+own+culture+to+serve+their+interests%2C+not+the+interests+of+the+organization%2C+which+ultimately+creates+turf+war+and+conflict+between+managers+and+teams+-+making+it+easier+for+employees+to+jump+ship.%3C%2Fp%3E%0D%0A%3Cp%3EIn+an+expressed+culture%2C+there+is+a+mission+and+vision+that+unifies+the+organization+across+units+and+brands.+Acceptable+behaviors+and+attitudes+are+coached+and+celebrated+reinforcing+non-negotiables+in+the+organization.+This+means%2C+if+you+were+to+go+into+5+or+6+of+your+different+stores%2C+you+would+get+a+consistent+message+when+asked+%22What+is+our+mission%3F%22+You+would+also+see+the+mission+and+core+values+practiced+in+the+behaviors+and+attitudes+of+all+your+employees.%3C%2Fp%3E%0D%0A%3Cp%3ESo+why+should+you+care+about+ensuring+you+have+an+expressed+culture%3F+Three+simple+reasons%3A%3C%2Fp%3E%0D%0A%3Col%3E%0D%0A%3Cli%3ECost+savings+in+reduced+turnover+costs+and+enhanced+teamwork%3C%2Fli%3E%0D%0A%3Cli%3ETeamwork+leads+to+enhanced+performance+which+then+leads+to+the+final+reason...%3C%2Fli%3E%0D%0A%3Cli%3EA+stronger+bottom+line%3C%2Fli%3E%0D%0A%3C%2Fol%3E%0D%0A%3Cp%3EHow+do+you+determine+if+you+have+an+expressed+culture%3F+Take+stock+by+identifying+the+following%3A%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A%3Cli%3EHave+you+identified+and+are+you+committed+to+certain+non-negotiables%3F%3C%2Fli%3E%0D%0A%3Cli%3EDo+you+have+established+core+values+and+core+operating+procedures%3F%3C%2Fli%3E%0D%0A%3Cli%3EAre+there+reasonable+performance+expectations+and+are+they+understood+by+your+people%3F%3C%2Fli%3E%0D%0A%3Cli%3EDoes+your+culture+emphasize+accountability%3F%3C%2Fli%3E%0D%0A%3Cli%3EIs+there+an+established+vision+for+business+development+and+growth%3F%3C%2Fli%3E%0D%0A%3Cli%3EIs+there+a+budget+dedicated+to+training%2C+technology%2C+and+facilities%3F%3C%2Fli%3E%0D%0A%3Cli%3EDo+you+have+a+strategy+for+recruiting%2C+training%2C+and+retaining+highly+qualified+support+management%3F%3C%2Fli%3E%0D%0A%3Cli%3EIs+there+a+program+in+place+to+mentor+replacements+for+every+critical+management+position%3F%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%3Cp%3EAbsence+of+these+characteristics+means+not+only+will+you+struggle+to+know+who+your+employees+really+are+and+what+kind+of+talents%2C+values%2C+or+common+principles+they+share%2C+but+they+will+not+be+able+to+reach+performance+standards.+All+pointing+to+costly+turnover+in+your+franchise+organization.%3C%2Fp%3E%0D%0A%3Cp+style%3D%22border-top%3A+3px+solid+%23DDDDDD%3B%22%3E%26nbsp%3B%3Cem%3E%3Cstrong%3EKendall+Rawls%3C%2Fstrong%3E+knows+and+understands+the+challenges+that+impact+the+success+of+an+entrepreneurial+owned+business.+Her+unique+perspective+comes+not+only+from+her+educational+background%3B+but%2C+more+importantly%2C+from+her+experience+as+a+second-generation+family+member+employee+of+The+Rawls+Group+-+Business+Succession+Planners.+For+more+information%2C+visit+%3Ca+href%3D%22http%3A%2F%2Fwww.rawlsgroup.com%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Ewww.rawlsgroup.com%3C%2Fa%3E+or+email+%3Ca+href%3D%22mailto%3Ainfo%40rawlsgroup.com%3Fsubject%3D%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Einfo%40rawlsgroup.com%3C%2Fa%3E.%3C%2Fem%3E%3C%2Fp%3E

Published: October 16th, 2018