“I’m not sure what happened,” Byron explained. “Our company was voted the number one employer two years ago. We have the best employee benefits, we have the best equipment, we have roomy workspaces, our sales people get trip incentives. All of a sudden, to stay profitable, we have to lay some people off. The mood around here turned south very quickly.”
“Times have been good?” I asked.
“Up ’till now.”
“What happened?”
“Sales have been off. Suddenly all these great things about our company are costing us out of business.”
“When were the decisions made that put you upside-down on your cost structure?”
Byron had to think back. “Three or four years ago, I guess. Those were the best of times.”
“It’s in the Best of Times that we make our biggest mistakes.” -TF
01-25-08
Investing money on items that did not bring any profitable return was a mistake. Yes, it is nice to work to a company that offert all these type of benefits and luxuries, but is this company looking beyond or just spending its savings. Perhaps, it is a better approach to not to give everything that you have at once. Instead,design a program that allows to give to your employees according to the needs of the company, market, and nations economic. Also, there is question to answer, How much can we growth?
It’s the necessity that makes people think towards solutions. In luxury we become lazy. Therefor bringing in some fresh idea’s – even in the good times – by means of consultancy or new or other employees I can create a mirror for reflection and making me think again. But that doesn’t stop me from making mistakes, they just seem smaller and giving me the opportunity to learn from them.
Have a nice weekend everyone.
Its interesting that new companies try so hard to provide the best benefits, trips, etc.. to their staffs. I have fond that the combination of above average benefits in combination with sound management in a “family environment” where salespeople are treated with respect and dignity will attract and retain better long term sales professionals over time.
My experience says if you use benefits and commission structure to attract your staff as soon as they get a better offer they will leave. A GREAT environment on the other hand will keep people around for the long term.