Clients of local law firm Johnston, Allison & Hord value that many of the same attorneys and staff have worked with them for decades.
Not surprisingly, that kind of longevity doesn’t happen by accident. It takes time, effort and money to create a work environment that begets low employee turnover.
But it’s well worth it, says Darrell Shealy, managing partner of the 101-year-old firm on East Morehead Street.
Because despite the stress of the job, it’d be hard to leave a business that gives employees $100 gas cards for their commutes in the throes of the recession. One that gives flowers, pedicures or gift cards on holidays and employee’s annual work anniversaries. One that throws a catered staff-appreciation party on the second floor balcony with a skyline view a half-dozen times a year.
“We do all we can to keep all our folks as happy as we can around here,” Shealy says.
The flashy perks of multi-billion-dollar corporations, such as Apple and Google (hello, nap pods, free dry-cleaning and on-site medical care), have publicly married the relationship between employees’ satisfaction and productivity. But whether you employ thousands or a handful, workforce retention and engagement can directly impact your margins.
Here’s one reason: Vacancies deal a blow to productivity, says Dr. John Bennett, a professor in Queens University’s McColl School of Business and the director of the school’s Masters program for executive coaching.
Add the often-lengthy process of recruiting, hiring and training an employee, and you’ve lost and invested a substantial amount of time and money before the new hire even contributes. Bennett says studies estimate that some businesses spend nearly the equivalent of that annual salary before the new hire starts producing.
But even without a vacancy, businesses can lose when employees are disengaged, or mentally “checked out,” he adds.
“Whether they’re making $20,000, $50,000 or $1 million a year, all of that adds up,” Bennett says. “So it’s important for us to have fully engaged, competent people doing the right things in the right ways with the right resources.”
So while small business owners might not have the revenue to offer free shuttle services and gourmet chefs for three meals a day, many Charlotte-area entrepreneurs have found their own ways to boost morale. And they’re attesting that perks – big or small – pay big dividends.
Building a culture
Perks alone often aren’t enough to retain an employee, but they go a long way toward building a business’s culture, which is what often attracts them or drives them away, Bennett says.
Sharon Garfield owns Traditions, a high-end home furnishings shop in Park Road Shopping Center. She has seven employees and can only afford to offer health benefits to her full-time employees. And yet her part-timers continue to come back.
She credits their loyalty with the work environment, which feels like family, she says.
Everyone on staff eats lunch together every day, and she’ll treat once or twice a week. She also keeps the back stocked with bread, condiments and deli meat for those who – like her – rarely find time to pack a lunch in the morning.
Employees also love the “Bottomless Mug” cards she buys from the Bruegger’s Bagels next door. Every January, Garfield spends about $1,000 on a handful of cards that entitle them to a year’s worth of free coffee, soda and tea.
And for her employee with back problems, she’ll lend him her monthly Massage Envy pass every few months.
Would employees stick around without those small perks? Garfield thinks so.
“But it’s an added benefit of working here and one of the first things someone will tell a new person,” she says.
Know your employees
There’s no one-size-fits-all model for perks, experts say, so it’s important for business owners to discover what appeals most to their employees.
Dr. Les Hudson, a professor of strategic management in the McColl School of Business, used to be the CEO of textile manufacturer Dan River, Inc.
Because most of his employees had children, he says he gave many family-friendly rewards, such as tickets to a ballgame.
On the other hand, Keith Luedeman, CEO of Charlotte-based online lender goodmortgage.com., found that offering perks with a “cool factor” attracted millennials.
That’s why the company’s 44,000-square-foot office on South Tryon Street, has a basketball court, a full gym and a game room with everything from ping pong and foosball to Wii and shuffleboard.
Since Luedeman founded the business in 1999, it’s grown from three employees to 109.
“I know there’s a payoff,” he says. “I hear from my employees, ‘Hey this matters. This makes a difference.’ And when they refer people, I know it’s because they’ve been talking about all the fun things in this place.”
‘Keep everybody in the family’
Perks are great, says Hudson, but they’re just a facet of a larger goal: to make employees feel wanted and appreciated.
One free way to boost morale is to ask for employees’ advice, Hudson says. However, he adds, “you have to be prepared to really examine what they’re telling you. Because if you don’t, ... you seem insincere. And that can do more damage.”
Johnston, Allison & Hord started a free crowd-sourcing tradition of its own four years ago: a competition between the children and grandchildren of employees to design the annual holiday card.
The employees, their families, and the clients love it, Shealy says – the ultimate win-win-win.
“It’s good for us to have a long-term relationship,” Shealy says.
“Our real philosophy is trying to keep everybody in the family.”
McMillan: 704-358-6045,Twitter @cbmcmillan
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