Business Valuations

How Your Employees Can Boost Profits and Values

The simple fact is that without employees, you don’t have a business.  Given the tremendous importance of your employees, it is important to step back and reflect on the value associated with keeping those employees happy.

There is a direct relationship between happy employees and happy customers.  A happy employee takes steps to ensure that your customers are satisfied.  This approach in turn leads to a higher level of customer retention and helps in attracting new customers.  On the flip side, unhappy employees can be quite dangerous to your company’s bottom line.

The hiring process is a key process for the health of your business and should never be overlooked or treated as a secondary process within your business.  Cultivating happy employees begins at this point.  Hiring can and will either make or break your business.

Offering great pay and benefits is only one important factor in keeping employees happy.  A more overlooked important factor is to appreciate the contributions that employees make.  If employees feel as though they are being overlooked or not appreciated, their overall happiness level will falter.  Many owners unnaturally expect their employees to have the same dedication to their business that they do, and this can lead to problems.

Your employees realize that they don’t own the business.  As a result, most are only willing to invest so much of themselves, their talents and their abilities into your business.  Taking steps to keep your employees engaged, such as showcasing that their talents are appreciated, will help keep employees invested and happy.  Research has also revealed feeling happy will make them more productive.  A few years ago, Fortune Magazine wrote an article that cited a UK study connecting employee happiness and productivity.  It’s definitely worth a look.

Being a positive owner is a gigantic step in the right direction where cultivating happy employees is concerned.  Being a good role model is at the heart of having happy employees.  It is vital that you reward people with praise and bonuses for jobs well done and fire employees that are consistently negative or failing to perform their respective duties.  Special touches, such as giving employees their birthdays off, can go a long way towards cultivating the kind of climate that leads to increased satisfactions.  And don’t forget, your team’s satisfaction will increase your bottom line.

When it comes time to sell a business, you can be sure that prospective buyers will be interested in your level of profits.  In this way, the investment you make in the happiness of your employees can be returned many fold.

Copyright: Business Brokerage Press, Inc.

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