Although the television networks bring more devastating news about the economy every night, we must also be aware of employers and employees who are making beneficial, even heroic, efforts to help each other and help the economy.
This is an outstanding effort by an employer that will motivate and retain good employees while reducing costly employee turnover.
Last December, 300 employees in Ashland, Ohio, were devastated when Archway Cookies, owned by a private equity firm, suddenly closed the plant, eliminating their jobs and health insurance. However, Lance, Inc., a Charlotte, North Carolina-based snack maker, bought Archway, reopened the plant, immediately hired 60 employees, and reinstated their health insurance. More employees will be rehired as business improves.
So far this would be a great story, but there is more.
Lance gave the 300 former Archway employees a $ 1,500 prepaid debit card to help with expenses. Rita Devan, an employee said, “What are these people doing? They don’t know me. They don’t know us. They don’t know any of the Archway people. And they’re giving each and every one of us $ 1,500.” According to CNN (the source of this article), David Singer, CEO of Lance, Inc., said that gift cards were a way for employees and the community to know that new owners are different. “We wouldn’t do it unintentionally,” Singer said. “We want to make money. But this is the group of people we intend to hire. We just wanted to let them know who we were.”
Many, if not most, of business managers and executives would be critical of the company’s generous action.
However, what is Lance likely getting for his $ 450,000 investment?
1. A huge reservoir of goodwill from employees who have returned to work; employees have not yet returned to work; Local officials; and the community in general.
2. A workforce that will likely do everything they can to make sure that Lance not only gets every penny on his investment, but makes a lot of money and thrives.
Why is this? It is human nature. How do most people respond when someone shows that they believe in them and make a financial investment in them? prior to get something in return?
Most of us would be determined to show that we made the right decision by doing all we can.
And, if there are some employees who don’t feel or act this way, the peer pressure on them will be substantial.
3. A workforce that is likely to be very cooperative when the company requests help reducing costs or waste, learning new skills, improving quality or productivity, working overtime, or cutting some slack in management if it makes a mistake.
4. Employees who value their employer and demonstrate it in small and large work actions on a day-to-day basis.
5. High retention of qualified employees and low employee turnover costs. This is a company that will spend your time and money improving its internal operations, products, and customer service rather than recruiting, interviewing, hiring, mentoring, and training new employees.
6. Lower hiring costs; Qualified employees will seek this company as an employer; they will have a deep bank.
7. Much less complaints and grievances, sloppy or incomplete work, bad attitudes, tardiness and absenteeism.
8. Thousands of dollars in positive publicity in the commercial and consumer press, and in the print and broadcast media.
Also, I estimate that Lance will recoup 3-4 times his investment in dollars.
Every organization wants talented, hard-working, cooperative employees and wants to reduce costly employee turnover. Please note that Lance, Inc., was willing to make a financial investment in advance to forge a strong new employer-employee relationship.
Management often has to take the first step in these matters because it is management’s responsibility to lead and because it has the resources. While your organization may not need to take steps similar to Lance, are there smaller but in principle similar things you could do? Remember that at some point the economy will change; How well you will retain valuable employees then has a lot to do with how you are treating them now.