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Overcoming People Problems In Your Business

07 March 2011

I recently met up with a friend of mine who was telling me how little time he had working on his business due to the people problems he was constantly experiencing.

He always complains to me that if he could run his business on his own, he would.

Unfortunately this is not a reality so he constantly wastes at least 50% of his working week trying to overcome staff issues.

The problem with Gary is that he's a 'know it all'. He likes to do things his own way and believes that having been in business for 15 years, he knows all about recruitment and keeping people who will be valuable assets and contribute to his bottom-line. The reality is the opposite. He's very disorganised, works long hours and wouldn't have the time to pro-actively look after his people. Sure he's a nice guy and that's probably why some of his staff hangs around, but the chaos he would cause in his business would be too much for most people to handle.

Gary doesn't 'get it' that he's the source of his problems. He has to learn how to free up his time so he can focus on the people issues. Of course I'm the best person to help him but I've learnt that it's not always a good idea working with friends and family.

There are many aspects involved with the recruitment process and then when you've found the right people you need to know how to keep them so they remain a valuable asset in your business.

I'm constantly amazed about how little most business owners (and most people for that matter) know and really understand about others. To have the right people on board with you, there are so many areas you need to know about including personality styles, values, attitude, their strengths and weaknesses. You cannot afford to get it wrong.

Studies by the U.S. Department of Labour revealed that a poor hiring process can cost your business 30% of the first year's earnings, and this loss can be even higher if not corrected within 6 months (Abbasi & Hollman 2000). So if your business makes $100,000, then this could represent $33,000 in lost profits by hiring the wrong people!

Here's another interesting statistic: Staff who receive formal training can be 230% more productive than untrained colleagues (Return on Investment in Training, Smith A. 2001), and top performing employees deliver 12 times the value of mid level performers (Aberdeem Group Report 2001).

The Final Word

So what does this all mean to you? It means you cannot afford to 'wing it' when it comes to recruitment. You need to get organised so you can free up your time to manage this key area of your business.

Lorraine Pirihi is Australia's No. 1 Productivity Coach. She's a dynamic, motivational and powerful presenter, an author and leading business coach. Lorraine specialises in helping small business owners and entrepreneurs have more time, make more money and have a life!

For more information on how to increase your productivity and your profits in your small business, subscribe to Lorraine's widely read ezine 'The Organised Times'.

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  • Ann Margulis

    Ann Margulis 7 years ago

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