Employee Retention and new applicants

[DerbyCitySignGuy]

Agreed, this is my gripe with Home Depot when they went from having skilled full time people in the departments to part time warm bodies wandering around. Any publicly traded company is going to value shareholders over people, including Costco. It's not right but it is flawed by design.

Yeah, Home Depot... Ugh. My personal pet peeve. I can't stand going in there. It makes me angry just thinking about it.

And you're right, any company with shareholders is going to do what's best for the rich folks before they take care of the common folks. Costco is just considerably more generous towards its employees and it shows.

 

[WildWestDesigns]

The verge of going out of business type dip.

That severe of a dip, there had to have been certain rumors going around if nothing else. They may not have "truly known", but you don't see that bad of a dip and employees still getting paid as if everything is normal. Somewhere, something has a hiccup that would give an idea of what's going on.

 

[WildWestDesigns]

And you're right, any company with shareholders is going to do what's best for the rich folks before they take care of the common folks.

Not the company that may dad worked for before he retired. The man (who still owns controlling interest) is not like that at all.

 

[ikarasu]

I don't think it could be stressed enough, just what the business owner did by mortgaging personal assets to keep things a float (although doing that after as many years that they have been around, typically means something is broken somewhere in the business, something about the process is off, but I digress).

I have to wonder why the other employees with all of this kumbaya going on, couldn't have taken even less of a raise (or none at all). Loyalty needs to be shown both ways.

I know how big of a deal it was - I know he could have not only lost the business, but also his house and only.source of income.

It was before my time, so I don't have all the facts .. just what was passed on to me. I do know he has no wife, and 3 kids who also work at the business. So maybe risking the loss of his house was worth not putting his 3 kids out of work.

They were primarily a screen printing company - didn't do much in digital sales. A couple years ago they he a snag... had a huge drop in sales. In order to make payroll and invest in more equipment to stay relevant... He put it all on the line and did the mortgage.

Best business choice? Likely not... But this thread was about turnover, so I was posting about how our employees feel about our owner, and why. It may be irresponsible, but an owner who will put everything on the line to make sure your wife and kids aren't out on the street.... That gets employees who will do the same for you and your company. I've never seen a closer, more.family group of people than here. We have little to no turnover.

And although it's not relevant... Yes, they made some bad choices not diversifying sooner. How many business owners haven't made a bad choice, or came close to closing down? It happens... They fixed the issue, diversified into many different markets (too many in my eyes!) And while I'm sure something may happen in the future.... Both the owners and the employees will likely weather through it, and hopefully well be in business for another 30 years.

 

[equippaint]

Yeah, Home Depot... Ugh. My personal pet peeve. I can't stand going in there. It makes me angry just thinking about it.

And you're right, any company with shareholders is going to do what's best for the rich folks before they take care of the common folks. Costco is just considerably more generous towards its employees and it shows.

Don't kid yourself, they are not doing it out of kindness. It is a business model that they have determined is more profitable than taking the walmart approach. Much like the higher end grocery stores have. A large part of their success can be attributed to their customer base's (middle class, upper middle class and business) perception of them as being an upstanding company.

 

[equippaint]

Not the company that may dad worked for before he retired. The man (who still owns controlling interest) is not like that at all.

More than likely it was not a publicly traded company. Private corps, even with multiple shareholders, are not beholden to the shareholders like the public ones.

 

[WildWestDesigns]

Best business choice? Likely not... But this thread was about turnover, so I was posting about how our employees feel about our owner, and why. It may be irresponsible, but an owner who will put everything on the line to make sure your wife and kids aren't out on the street.... That gets employees who will do the same for you and your company. I've never seen a closer, more.family group of people than here. We have little to no turnover.
.

For some bosses, that's at the risk of putting their wife and kid(s) out on the street. It may still not work out (diversifying too much and be just as bad as not enough). That's why I sometimes don't think some employees get what that decision is all about. I applaud the guts of the decision, I don't know if I would have done it (especially with a one year old), I would have made other changes (don't know what they would have been, firing would have been the last option, but if it would have required mortgaging everything, I may have just folded up).

 

[DerbyCitySignGuy]

That severe of a dip, there had to have been certain rumors going around if nothing else. They may not have "truly known", but you don't see that bad of a dip and employees still getting paid as if everything is normal. Somewhere, something has a hiccup that would give an idea of what's going on.

There were always rumors flying around that place, even when things were good. It was a very weird, very bad vibe there. No raises at all for years, but most of the employees held a lot of loyalty for various reasons, so they stayed with the company. I really liked (most of) the people there, but it was just off. That was one of the weirdest places I'd ever worked.

Not the company that may dad worked for before he retired. The man (who still owns controlling interest) is not like that at all.

It sounds like it's a privately held company, which is entirely different than a publicly traded company. An owner with controlling interest in a privately held company has a lot more say in the details. A board of directors just cares about the bottom line.

 

[WildWestDesigns]

More than likely it was not a publicly traded company. Private corps, even with multiple shareholders, are not beholden to the shareholders like the public ones.

It sounds like it's a privately held company, which is entirely different than a publicly traded company. An owner with controlling interest in a privately held company has a lot more say in the details. A board of directors just cares about the bottom line.

NYSE: HR. Any other assumptions?

 

[ikarasu]

Don't kid yourself, they are not doing it out of kindness. It is a business model that they have determined is more profitable than taking the walmart approach. Much like the higher end grocery stores have. A large part of their success can be attributed to their customer base's (middle class, upper middle class and business) perception of them as being an upstanding company.

Depends! Most companies are like that. But there are a few that aren't.

Some owners realize whether they make a million a year, or 100 million a year, they'll live comfortably. So they pass it onto their employees, so their employees do good work, stay happy which means increased production / quality, and it furthers their brand.

Taking costco for example... Look at their customer service / employees, I've always been helped and treated like a king when I go into Costco. Then look at Walmart... you have the 17 year old kids who will stand there ignoring you, stocking a shelf and give you attitude for asking any question. The Costco employees are happier... And it shows in their work effort.

Theres been some CEOs to completely forgoe their salary to pay employees during bad years(Mostly in Japan) Because the couple million they'd make is a drop in a bucket to them, and it does a world of change to their employees.

A business is about making money though, and I don't doubt Costco / Winco / Aldi are there to make a profit - They saw an opportunity and took it. It may be for the wrong reasons... Or who knows, it may be for the right ones, but either way... It shows paying good can work.

 

[DerbyCitySignGuy]

Don't kid yourself, they are not doing it out of kindness. It is a business model that they have determined is more profitable than taking the walmart approach. Much like the higher end grocery stores have. A large part of their success can be attributed to their customer base's (middle class, upper middle class and business) perception of them as being an upstanding company.

Sure, but that's irrelevant to employee morale and performance. Most employees aren't going to care WHY they're getting paid more and treated better, they're just going to know that they ARE getting better treatment and more pay. The reasoning is irrelevant.

 

[DerbyCitySignGuy]

NYSE: HR. Any other assumptions?

Healthcare Realty Trust doesn't show one person with a controlling stake, are you sure you're correct that he was the majority shareholder?

 

[WildWestDesigns]

Healthcare Realty Trust doesn't show one person with a controlling stake, are you sure you're correct that he was the majority shareholder?

He might have retired by now. My information is outdated since dad retired about a decade ago. He is older then dad by a few yrs. He was very autocratic, so he would have to be all out if he wasn't in control.

 

[Texas_Signmaker]

Don't kid yourself, they are not doing it out of kindness. It is a business model that they have determined is more profitable than taking the walmart approach. Much like the higher end grocery stores have. A large part of their success can be attributed to their customer base's (middle class, upper middle class and business) perception of them as being an upstanding company.

I agree with this.

I think most people are tying to get the most benefit / resources (aka $$) for the least effort. It pays to have happy people and a happy workforce so there is clear financial incentive to do so. Instinctively we're all trying to "stay alive" so our main drive being "get to most resources to stay alive". We can pretend everything we do is out of kindness and caring, (even if it really appears that way) but deep down its because it's getting us something back. W're selfish, but that's because we're human.

Not saying we don't have caring emotions and they don't play a role!

 

[DerbyCitySignGuy]

I agree with this.

I think most people are tying to get the most benefit / resources (aka $$) for the least effort. It pays to have happy people and a happy workforce so there is clear financial incentive to do so. Instinctively we're all trying to "stay alive" so our main drive being "get to most resources to stay alive". We can pretend everything we do is out of kindness and caring, (even if it really appears that way) but deep down its because it's getting us something back. W're selfish, but that's because we're human.

Not saying we don't have caring emotions and they don't play a role!

Absolutely. It's instinctual, it's a survival mechanism.

There are some people who focus their lives on doing good, but they're generally not disgustingly wealthy and powerful. To be clear, it takes a certain type of person to be "successful" in the Western sense of the word. That generally means using other people as stepping stones to get where you want to be, and having a flexible moral compass. Not always, but usually.

It's why I'll never be filthy rich, and I'm okay with that.

 

[equippaint]

NYSE: HR. Any other assumptions?

Yes, there are more where that came from

 

[equippaint]

Sure, but that's irrelevant to employee morale and performance. Most employees aren't going to care WHY they're getting paid more and treated better, they're just going to know that they ARE getting better treatment and more pay. The reasoning is irrelevant.

It is very relevant. Motivation is always something people should be aware of because it affects things down the road and how you should plan for it. If you get too snowed and think that Costco cares so much about you because they are just good people than you may never see the layoffs coming or a massive shift in corporate philosophy with a new board. It happens all of the time.

 

[TimToad]

Every year pretty much, business is up. Look at this thread, people claiming their business has doubled in the last two years... Look at the other thread on how business is doing, people have claimed it's doubled since last year also.

The owner doesn't make a static xx per hour like an employee does. When business is up, so is the owners Proffits... I know our business has doubled since last year, and while they're looking to hire two new people... Their wages will barely put a dent in the profit.

So yea... I'm ok with the owner paying $2500 more per year, considering he's likelly making a couple hundred grand more this year than last, even after hiring more payroll.


And I never said I'd take a raise when the business was hurting - it happened before my time. The point was to show the owner not only cared a out losing his business, but cared about his employees. To most owners, employees are numbers on a spreadsheet. To good (in my opinion) owners, employees are part of.the family.

The world isn't about how much money you can bring in .it's about helping people, treating people right and getting by.

Another example... At least once a month were donating signs to schools or hospitals, for autism events, or one of a dozen other things... All for free. Not just cheap Coro signs either...I'm sure the concept of giving away free signs is foreign to a lot of owners on here. Some people try to punch every penny they can get, and likely consider donating a couple grand worth of signs a year a bad business move.

Everyone runs their business different. Every owner is unique, and has their own principals with what's important to them.

I'm happy to have owners like I do. So you guys can say they're idiots, tell me how wrong / irresponsible they are, but I've never respected, or was willing to work so hard for anyone else. Loyalty and commitment begts loyalty and commitment .And as I've said... 30+ years, one of the major sign companies in the biggest city in Canada... We get lots of government contracts, I'd say they're doing something right.

But I'm just an employee, what do I know .

frickin' Canadians.

 

[TimToad]

True to a certain extent but in fairness you cant leave out bad employees. I'm no walmart fan but they probably receive more bashing than what they are due. Playing devils advocate, there are people that have worked their way up through the ranks of Walmart and have made decent careers there and have had doors opened for them that would not have had elsewhere. The majority of their workforce is not on welfare too. Plenty of issues stem from our growing corporate society but you can't ignore that there are also issues with people that don't take initiative to better themselves and expect things to be handed to them. Walmart is considered a good employer for truck drivers and is somewhat difficult to get in there so it can not all be bad.
One overlooked issue that contributes to companies not having more full time positions is the reliability of the lower level workers. It leaves them with many spares so to speak so when 1 or 2 or 3 have a hangnail Saturday morning and cant make it in, they are not stuck.

Sorry, the trail of poor corporate practices by WalMart are legendary and not worker caused in the slightest. They not only have been guilty of strategically manipulating worker's hours to minimize predictability and create insecurity to breed dependency and avoid paying benefits, but they have been found guilty multiple times of discriminatory promotion and hiring practices on racial and gender lines. They have also been found guilty and forced to pay hundreds of millions in settlements for a variety of class action, labor related lawsuits. All of which they have brought upon themselves out of sheer greed, sexism, racial animus and their founder's right wing agenda.

A nearly 30 year smear campaign has been waged against the Clinton family simply because of the resentment caused by the family doing the then governor a favor and placing his wife on the Board of Directors, where she instantly ruffled the good old boy network by making suggestions on how to make all those multi-million dollar lawsuits go away. I guess suggesting that a company pay a decent wage in order to end the widely held negative perception about how over half of their employees were on public assistance due to low wages, how promoting more qualified women and minorities to management would lower the number of class action lawsuits and labor department fines, how observing and respecting break time and overtime laws would lessen the same kinds of suits and fines was all too heretical for the other board members, so the HillBilly Mafia has spent the last 30 years nailing this family to the wall at every chance.

They and their lobbying arm are also some of the biggest proponents of stripping collective bargaining protections, minimum wage laws, etc.

 

[Texas_Signmaker]

Sorry, the trail of poor corporate practices by WalMart are legendary and not worker caused in the slightest. They not only have been guilty of strategically manipulating worker's hours to minimize predictability and create insecurity to breed dependency and avoid paying benefits, but they have been found guilty multiple times of discriminatory promotion and hiring practices on racial and gender lines. They have also been found guilty and forced to pay hundreds of millions in settlements for a variety of class action, labor related lawsuits. All of which they have brought upon themselves out of sheer greed, sexism, racial animus and their founder's right wing agenda.

A nearly 30 year smear campaign has been waged against the Clinton family simply because of the resentment caused by the family doing the then governor a favor and placing his wife on the Board of Directors, where she instantly ruffled the good old boy network by making suggestions on how to make all those multi-million dollar lawsuits go away. I guess suggesting that a company pay a decent wage in order to end the widely held negative perception about how over half of their employees were on public assistance due to low wages, how promoting more qualified women and minorities to management would lower the number of class action lawsuits and labor department fines, how observing and respecting break time and overtime laws would lessen the same kinds of suits and fines was all too heretical for the other board members, so the HillBilly Mafia has spent the last 30 years nailing this family to the wall at every chance.

They and their lobbying arm are also some of the biggest proponents of stripping collective bargaining protections, minimum wage laws, etc.

Modern-day slave master = Walmart