Posted by Bob Bailey on Mar 16, 2013 in Blog | Comments Off on Increasing Human Capital Efficiency
Are you in denial about the employee efficiency of your company?
Not long ago I asked the owner of a mid-sized business what the company experienced in the way of employee efficiency and turnover. He quickly replied that they didn’t have a problem. I was a bit skeptical because of the statistics on both issues but you have to understand that this owner is a very careful guy, treats his employees well and believes what he hears from his management team. (I think they believe it as well)
As the months have gone by I have been able to observe both employee efficiency and turnover at one of their numerous locations. My conclusion? – There is a problem – Numerous problems.
Although I’ve experienced a cheerful and conscientious staff that works hard at maintaining corporate standards and practices I have also observed . . .
Numerous turnovers
Poor communication practices
Multi-tasking by mid-management resulting in missed queues and work build up
Mid-management spread very thin – often managing two sites at a time, struggling to keep their teams at full numbers and well trained
Inconsistent practices from one facility to another
The business looks to be running well from the perspective of the casual observer but I believe they are functioning well below their potential. There are a number of highly loyal employees that are the ones that really ‘hold the ship together’. (This begs the question as to the benefit/contribution derived from the other employees.)
My point is simply that even good intelligent executives who have a noble work ethic and faithful employees can be blind to what’s really happening and missing out on tremendous potential.
It requires a commitment to occasionally take a good, hard and honest look at what’s going on and being willing to admit that there just might be some Human Capital Efficiency issues even in the best of companies.
Then it necessitates taking the next steps of . . .
This will lay the foundation for incredible growth and ROI beyond what you’ve thought possible.