Staff suggestions are hot property
Acting on staff suggestions, particularly in lean times, is a catalyst for increased employee engagement and better communication within SMEs. Staff engagement (or lack of) plays a significant role in productivity and engaged employees are more productive.
Paul Kane, a Grant Thornton New Zealand partner specialising in the SME market said asking for, and more importantly, following through on staff suggestions and engaging with staff, especially in the current global recession, could benefit businesses in many ways. Paul Marciano in the book ‘Carrots and Sticks Don’t Work’ states “engaged employees work hard for the sake of the organisation because it gives them fulfilment”. With 22 per cent of businesses in New Zealand expecting employment to grow over the next twelve months retention and engagement strategies are just as important as recruitment strategies.
Paul’s comments follow a recent Auckland ‘Unlimited Business Link’ forum, developed in conjunction with Fairfax for SME business owners, which looked at Human Capital - investing in the right people at the right stage.
“One business owner had asked staff to provide suggestions for improving processes and the working environment, and had received 130 suggestions — 95 of which were implemented within three months.”
“One simple idea, which involved moving equipment, saved two hours a day in production time.”
Other businesses cited holding weekly sessions with staff, with everyone being encouraged to bring along an idea. Action points were identified and the person with the idea encouraged to implement it.
“Over time it was apparent that staff were more open to ideas and to change, and the quality of the ideas improved.”
Weekly staff meetings, during which staff are encouraged to voice their views, is another way of recognising and valuing staff input, and can work both ways.
“One participant shared the company’s recession problems with its employees, and outlined a plan which ensured everyone kept their job but all would receive a pay cut. After six months the business issues had been worked through, pay restored to previous levels and all jobs were safe – some bonuses were even given.” There was a sense of pulling together and striving towards a common goal which in this instance was survival.
Acting on staff suggestions is a powerful way of developing a strong workplace culture and according to Peter Drucker, when a recession hits, you need to focus on building a culture that supports strategy implementation and change.
There was a common theme that most businesses were trying to develop a culture that was built on common sense, respect and honesty, sharing and support and most of all creating a fun environment in which to work.
Further enquiries, please contact:
Paul Kane
Partner, Privately Held Business
T +64 (0)9 308 2576
E paul.kane@nz.gt.com