How to Raise the Efficiency and Success of Your Business

If you think that a slow or somewhat bad economy makes hiring employees cheaper and easier, I advise you to think again. You should actually be worried about this

Perhaps the most worrying thing is losing your resources and time

I myself carried out a simple study and came out with conclusions I found natural but frightening: on average, 20% of these new employees will leave after a year or less, and more than 70% within one to two years

The first group, the 20%, are usually the competencies in demand in the market, and the 70% are of average competence. The remainder are of the lowest competence and skills, for whom market demand is very low if not nonexistent

After this, the hiring cycle starts again, and (costly) hiring anew. You will lose money, lose time and other things you could do without

And all of this is because of low wages in general

The study took into account the cost of hiring and training a new employee, in addition to productivity losses during the hiring period, then the training, and until the employee is ready for work... from the moment an employee leaves his job until a new employee replaces him and also becomes ready for work

Salary is as important to the employee as the practice of his profession

You ask for a lot: certificates, studies, experience, skills, abilities, so you must also offer an equivalent in money

I would also like to add that salary is not the only thing that matters, as there are many ways in which you can invest in your employees

Since the economic recession that began in mid-2017, many companies have had to be creative about where they spend their money. Perhaps giving bonuses is not part of their plans, but they could invest in their employees in other ways that benefit the employee and the company at the same time

One of these ways is making sure to help define the employee's goals, what he wants to do, and helping him achieve it. This may be in exchange for a certain number of days so the employee can complete some work at home or in his community, which has been proven to increase employee happiness. Or perhaps by paying the employee to attend institutes and higher schools

Perhaps paying for them to enroll in a training course or sign up for an accredited certificate program, and the like. Or perhaps on-site training. Whatever the training course, the message is the same: investing in your employees pays off

Most countries have programs for developing national talent, so why not support your employees and help them in this regard

As part of the study I conducted, I spoke with a salesman at a local factory with well-known construction products in very high demand, not only locally but across the Gulf as well. This is what he said

In 4 months I will complete 20 years with the company. When I joined the company I was earning a basic salary of 315 dinars. Now I receive 510 dinars with a car and a phone (imagine, 195 dinars is the journey of advancement after 20 years). In addition I have a monthly sales target of 40 thousand dinars that I must achieve in full. If I fall short by 100 fils, I will not get the sales commission, and if I achieve it, I will be paid only 30 dinars

It is no secret that we, as sales employees, live in a vortex of psychological pressure and, often, even bad verbal abuse

The only thing that keeps me with them is that I will retire two years from now... I missed many opportunities to leave this company, but I agree with you that I was a coward and did not make the right decision

Another story, with the general manager of a company belonging to a group of companies owned by one of the country's top businessmen

Before I took over the company, the board of directors, made up of one family, brothers and sisters, was preparing to declare bankruptcy. At that time I was working in another company in the same activity. Being familiar with and capable of managing this type of business, I submitted to the board a plan that would allow the company to change its situation and reach a stage of making profits

We agreed and I was appointed general manager of the company, and the journey of toil and hardship began... I will not go on at length, as you, Mr. Ahmed, know a lot and have the details of my journey with the company to this day... After 7 and a half years, the company achieves revenues of up to 5.5 million dinars and profits of 37%, and it now dominates the local market with its products, which are also in demand across the Middle East because they meet international specifications

After 7 and a half years, I made the decision to leave the company, and the reason is that I did not have the money to buy a chair and a table for my son to study at

Imagine, I made millions for them when they were on the verge of declaring bankruptcy... The real disaster was the owners' way of thinking: they did not hesitate to accept my resignation, saying you are an employee doing your job and anyone else can do what you did

I did not want to prolong the discussion with them and get into fruitless arguments. A good tree bears good fruit, and the opposite is true

And as you know now, I manage the newest and largest factory in terms of production capacity, I achieve more than 9 million dinars in revenue, and my salary is more than 3 times what I used to receive, in addition to my share of the annual profits

I love my work

And there are many other negative examples that I will share with you in the future

The bottom line: business owner, you must think about how to earn the loyalty of your employees. You will not achieve what you want except by the right and healthy balance with your competent employees, and by giving the chance to those who are less competent and turning them into competent people too. Make them love their work and give their best

You are the leader, and you must master managing people, because managing the work is managing people. This is how you will raise the efficiency and success of your business