Increasing profits is a challenge many managers, business owners and entrepreneurs face. In today’s competitive business environment, finding ways to reduce costs and at the same time increase revenues is paramount. You need to keep increasing profits while keeping productivity and quality high.
The right balance you need in increasing your profits is in hiring and retaining outstanding employees. Your people are the key.
The problem is that many hiring managers rush through the hiring process, leading to some degree of failure. When you become reactive rather than proactive when filling positions, your company settles for less than the best.
The solution to this hiring problem and to increasing profits is in focusing on planning and strategy. You’ll significantly lower the cost of doing business if you plan your hiring process. And if you also implement sound strategies once your new employees are on board.
Here are a few ways to improve your hiring process and team training to keep increasing profits.
The Hiring Process
So how do you go about the preplanning? You look at different considerations. You conduct a thorough job analysis. What type of person are you looking for? What are the values of the company? How difficult is the job?
You look at all the different factors involved in the job you’re filling in. Look whether any of your current employees can fill the job. Check how long the hiring process –how long it will take to find the right person—will be. And determine what you are willing to negotiate with the potential candidate. Increasing profits involve dealing with all the details.
Now that you have all the details fleshed out, you should start with recruitment. Successful recruitment leads to increase in profits. It’s a matter of doing the right strategy.
Firstly, you can tap into your network of professional connections. You might not know it yet, but the best candidates for the job may be working right now for your competitors. If you can tap into that network, you might see your company increasing profits in the future.
Secondly, you have to think about hiring friends or family members. Though they may be qualified and good for the job, hiring them might set you up for bigger problems in the future. Increase in profits should not come with demoralizing hiring practices. Conduct your hiring process fairly and the morale of other employees can go up.
In the process of hiring, you have to think about the compensation package. It’s an integral part of the negotiation process. Check if the wages are fair for the job, industry and the market. Are you giving a competitive compensation package? Check what the other companies are offering.
It’s important in increasing profits that you think about the compensation package. Plan it out well and you can find yourself increasing your profits. An unfair compensation package can lead to discomfort or discontent later on. Once they start working, they may lose morale or productivity.
Increasing Profits through Your Team
Increasing profits with your team requires the correct treatment and work environment. It entails treating them with respect, dignity and appreciation. It may seem like common sense for managers, but many people don’t follow this attitude. And that’s where many fail at increasing profits.
In fact, I consulted with various organizations about employee retention and commitment. After meeting individually with members of the staff, I found out more about their views on the company. Common to their sense of dissatisfaction, if any, are problems in communication and appreciation.
The solution to this discontent is multi-leveled. To continue increasing profits, you have to meet each problem head-on. It’s already partly solved by recognition of the problem. Your employees will think: “Finally, someone is listening to my grievances”. And after that, you can design targeted programs to train you and your staff.
There are many managers and supervisors who only have technical skills. But the key to increasing profits with your team is having managers who have interpersonal skills training. They need to be able to manage and communicate effectively.
Truth be told, managers who think they don’t need training –even though they do—are the biggest obstacles to the success of any company.
So if you want to competitive on all fronts, everyone must be on the leading edge. From your new recruits to your supervisors, start increasing profits with the right recruitment and training.