Small business owners?

Anyone operate a small business? Thought maybe a thread to share best practices , ask questions and bounce ideas ? I took over a 63 year old company in December. I started here in 1997 as a delivery driver so know the ins and outs but way different from this position. I have 47 employees and being so established it runs relatively smooth. There has also been a lot of bad habits established over the years and is proving difficult to make any culture change without running off people. Change is hard and the only constant, but I think absolutely vital if there is to be any growth.

 

Could you go into more detail about what you're trying to change, and what type of business do you run?

I can tell you in general, employees want only a few things. Good pay, good benefits, equitable and fair treatment, and reasonable hours that afford a decent work/life balance.

I wish I had a nickel for every business owner that I've heard complain about how no one wants to work, but then admit to paying the same wages for the last 20 years. The trades in particular are terrible. There's no question why young kids aren't going into them. My advice would be to pay more than other companies in your niche, and treat the employees fairly. You'll have no problem attracting and keeping talent. Too many owners are unwilling to give up a few percent of the profits back to the workers. Then they suffer for eternity playing a tiny violin in the distance.

 

Thanks for the reply.

Biggest issues are the negativity and backbiting that has been overlooked, and caused mainly by the years of a sweep it under the rug mentality. Little to no accountability and now get some push back and attitude when held accountable.

We are a wholesale distributor. We did around 16 million last year and on track for 17-17.5 this year. I pay a competitive wage for this market and benefits include , health , dental , eye , 401k and profit sharing. I do quarterly bonuses as well when the cash flow allows. I do not hoard money and prefer very much to put it in the company and employees. For instance, next Monday is payroll and I allocated 75k for bonuses spread appropriately through all employees, and did not take one myself. The health insurance costs an individual 15 bucks a paycheck so it is a very nice program. I have an account that at the first of the year I put $1000.00 per employee in in case they use up all theirs and they can draw from that , if another employee doesn’t it goes in a community fund to help others out as well. I don’t think it is the $$ side of it , and it isn’t widespread but there is juts a culture here that doesn’t make most excited to come to work. I want all the employees to not dread coming in , be comfortable and pay their bills. There is a lot of “ I do more than so and so “ and the like. I understand that we are dealing with people and people can be messy but in general I think the atmosphere could be more comfortable and less tense. Getting people to care about what they do and more importantly why they do would be huge.

 

Consider reversing the benefits.

the lower your income in the company, the more the company provides.

the higher your position, the more you become responsible for.

why should a senior manager get all the rewards when it’s the employees doing the daily grind

 

One thing I saw as being helpful when I used to work for a smaller company was letting the employees have a say in the goings on. A suggestion box available to everyone opens up the lines of communication. Beyond being a receptacle for people to air their grievances, it could be a valuable tool to help streamline the business. You never know what ideas someone might contribute to benefit the team as a whole. If someone has a an idea that you really like, you can implement it, or have a brief meeting with the employees to discuss it further, to see if there might be any pitfalls.

 

I work for a small business that has been around for almost 70 years now. Constant growth has not been the reason it's still around. I have seen it ebb & flow considerably in my tenure. I think the owners found a way to balance overhead and profit? I mean, they are not concerned with growing each year so much as they are with maintaining what they have. An addage from a comedy movie: "If you're not growing, you're dying." I have found this to be untrue at least in my own experience. I had thought I would need to look for new employment back in the banker orgy of 2008, but we're still here. Since I've been here we have weathered 9-11, banker reset of '08 and covid. We are currently finding our way through the created interest rate debacle. Not doing great, but holding our own. We love New Business, but what has kept us going all along is Repeat Business. It can be achieved several ways including: excellent service, excellent product breadth, knowledgeable & experienced workers and a solid reputation. I am lucky to work at a place that carries all of these traits in at least some capacity.

As for the mutinies...Motivators can be either Fear or Food. That choice is up to you to make. Insubordination (unjustified) should be met with termination, unfortunately. If you let one of them rise up (no matter how important to the business) others will follow suit.

Being ignorant to individual nuances here, my recommendation would be to shedule a company wide, face to face meeting. Buy them some food (this is something that should take more than 15 minutes). Sit them down and lay out your side (have a specific plan and actions to propose). Ask them for their input. Let them know you want to grow and that you want to take them with you.

 

i don’t think I follow ? I have not taken a bonus last three quarters, so I could give more to the employees. However, I do reward management and key people with a bigger bonus when the time comes.

 

Instead of paying 90% of the managers medical insurance and 25% for employees (both just examples)

Flip it and pay 90% of the employees and 25% of the managers.

give the bigger bonuses to the more of the workers and managers less.

“but I’ve earned it by working for my status….”

you get a higher salary because of your stature…


Just a bunch of different case studies from business management training I’ve done.

 

oh , everyone has their insurance covered at same rate.

 

It’s just an example is all.

push the rewards to the floor more than management.

consider different work schedules.

instead of a traditional five 8-hour days, four 10’s and a 3 day weekend.

have people have flexibility so if they want Tuesday - Thursday off, they can. I know several who work that and love it.

easier to book campgrounds etc.

off during the week for kids school events etc.

 

Congrats on taking over the business! I work in HR and focus a lot on culture and values. Culture is one of those things that takes a long time to build up and can erode very quickly with a few misguided decisions.

Not sure of the exact setup of your operations, but a few things that can help:

Regular gatherings of all employees at all levels. Maybe it’s an onsite lunch, celebrating work anniversaries, birthdays; things like that are a reason to bring everyone together. There could even be a committee formed of employees through all levels of the organization who plan events.

All staff/all hands meetings. Another reason to bring people together. Talk about the quarterly financials, the big wins and the future plans.

Management by walking around: Again, not knowing the layout, this is a general suggestion. Have folks who are in the office walk the floor or spend time in an employee break room. This makes everyone more relatable, available and hopefully a less “us vs. them” mentality.

Give employees a way to speak up if they have a suggestion or concern. Suggestion boxes are ok, but they need to be managed. Also, people tend to be a bit more direct and possibly gruff given the anonymous nature of it. Think of the things people say to each other online vs face to face.

If you have an HR person or someone who handles employee relations, have them seated as close to the employees as possible. I once worked in manufacturing and my office was on the floor. The employees didn’t have to leave the floor to stop by and chat vs. going to the offices to see other members of management.

 

I would love to have you speak with the HR team at the company I work for. In 7 years I have yet to see a single team member. Once about 4 years ago I tried to find them. They’re hiding somewhere in the labyrinth of cubicles with no signage. I have to believe this is intentional. It’s baffling. They’re there to protect the company from lawsuits, not act as a liaison between it and the employees.

 

That’s tough to hear Eric. Unfortunately, that’s how some HR people/individuals roll. I wish it was less common.

 

The last place I worked was facilities for a small college. The HR department expected work orders they submitted to be completed promptly. However, if our department had a vacancy that needed to be filled there was absolutely no sense of urgency on their part. Things like participating in yoga classes on company time were the priority.

 

Sorry… I just realized you probably take on enough of other people’s crap during the week. I don’t want to be one of those people that sees HR and thinks “therapist”

 

Major typo in my post you quoted! I meant to say “I wish “it” was less common”; meaning HR people/departments were more open and accessible to employees. In addition, friendly and collaborative. It would make things a lot easier for folks at work.

 

Definitely tough to hear! It’s a department that should collaborate.

 

Mykidsdadd only advice I could add is make your employees feel special. I used to remind them of upcoming birthdays anniversaries. Some of more typical men; got a HBD card to sign your wife’s roses or lilies will be delivered to her work at lunch and phone # s to 3 or 4 restaurants for reservations
Singles into fishing hunting got first day of season off with pay.. Is it hard to let xx borrow 4 company tables for child’s graduation.. Bring tables to them; with a gift…