COVID Economic Recovery Solutions — Treat Employees Right
The economy’s crashed, hundreds of thousands of jobs are lost and now as society begins to rebuild and open up again it’s time to rethink how jobs are structured.
Recently, when moving 4 filing cabinets out of my living room, in order to build an at-home library I spoke with the manager at U-Haul. There were 7 people waiting, with an average wait time of 40 minutes just to check in a rented truck or U-Haul van.
When I asked the manager, a man named Christopher, if it was possible to hire one or two other employees to help manage the customer load he replied,
“I can’t get people to work here. They all want to stay home and collect unemployment benefits due to COVID.”
I was shocked that the economy is hurting not just because of COVID fear making local governments close down brick & mortar shops but also due to people not wanting to come to work to mooch off of unemployment.
This hurts retailers but also local cities and their economies because when and if local businesses reopen, if they are understaffed, with long lines, it’s just going to push consumers to order on Amazon instead of shop there.
Obviously some businesses like U-Haul you can’t order online..though drones are doing some amazing things these days.
Low Quality Jobs = Low Quality Work
Aside from the rather unique moocher situation with some staying home to college a paycheck and not working remote but living on tax-dollar funded government benefits…
There is a lot to be said about flipping burgers or working a register or answering phones and being treated poorly by management.
The Trickle-Down Effect of Incompetence
When the number one concern of employers is not investing in employees to create a high quality work environment, but how can we cut costs, outsource labor to 3rd world countries, lower the hiring wage, reduce worker hours and spread them out over more employees and reduce benefits — well is that motivating people to do a good job?
The question answers itself. If an employee is given a half-ass training (because the manager is also underpaid and under trained), and they are disrespected and made to feel like:
“You are easily replaced so appreciate this shitty job,”
Then it’s the trickle down effect of incompetence.
On the other hand, if employers approached training employees as an investment, with professional development included to help employees not only gain competence but additional skill sets to make them more of an asset to the company and their growth opportunities — this changes the ripple effect in workforce management.
Investing in both higher wages and professional training, with work culture more evolved than mashing buttons to get minimum wage then employees will find their own reasons for working harder to do better.
This creates a better quality product or service for the end user that the company serves, which then increases customer retention, loyalty and lifetime value.
Brand loyalty is something that shouldn’t just be customer-centric. Brand loyalty cultivated in both the customers and the employees, when increased also increases profits and productivity.
Strikes at Whole Foods and Amazon
If decision makers at the CEO level can’t read the room or doubt the logic in the above paragraphs just look at the strikes by Whole Foods workers and Amazon employees who continued to toil on in unsafe working conditions.
When you aren’t given a lot benefits-wise, as a bargaining chip from your employer, you don’t have a lot to lose if you get fired for striking.
This loses time, money, convenience, customer satisfaction scores drop and just as employees leave for a job that pays $1–3 dollars more an hour so will customers when there are delays due to poor work ethics and project management skills by hiring managers and those who structure employee business models.
Businesses Have to Adapt to Survive COVID19
Instead of making excuses about how an existing system can’t change, employers should wake up and smell the Jamaican Blue Mountain Coffee: with the lack of foot traffic now is the perfect time to retool the business model
Sam’s Club, Costco and HEB grocery store have all taken the lead here and raised wages for their employees as well as invested in their safety.
As mentioned in management philosophy blogs, research has proven beyond a shadow of a doubt that when intrinsically motivated individuals apply their efforts to a task they are 10 times more productive and successful than people who are only money-motivated.
This means it isn’t just about the money — don’t treat your employees like dirt anymore and they will reciprocate.
So few jobs actually invest any sincere time in building new skill sets in their employees but every time a company does this, the employee becomes an unofficial brand ambassador.
Feeling respected and appreciated is the cornerstone for every social interaction that’s successful, from family, to relationships, to friends to business both B2C and B2B.
Creating this feeling in employees with concrete specific investments in improving their abilities, you now have a spokesperson for how great your company is.
Many of these employees are like micro influencers with their own social networks sometimes rather large.
More employee loyalty creates more profits because you get better work done, word of mouth organically spreads to their friends, families, and facebook and twitter accounts without a single ad dollar needing to be spent.
In a large company multiply this by 100 or 1000 — it’s pretty damn clear it’s stupid to treat employees as disposable to-go containers or warm bodies to fill a space when there is a much higher return from professional development in the workspace.
Where We Go from Here Matters
Ecommerce is booming, many jobs and even schools may utilize more remote work than in person attendance now. Businesses will have to adapt to a post-COVID world in order to survive. This means the old guard has to change.
The message to employers emerging from economic downturns from C19 is clear:
Instead of hyper focusing on reducing labor cost — put some real thinking and research behind professional development for employees and creating a quality work environment.
What goes around comes around.
Creating a 2020 strategy that involves treating and paying employees better, will only benefit everyone better and rebuild the economy. Mic drop.
Enjoyed this blog? Signup here to get updates on new startup blogs.
Check out my blog here Jetski Shaman
Is Facebook not explaining why the disapproved an ad?
I worked at FB for years and offer FB Policy Consulting here
Available for freelance writing and guest posting on your blog: blogger@jetskishaman.com
