Question: Creating Constant Growth for Employees

One of the challenges for SMBs is to create constant growth opportunities for employees. In many cases, the organizational chart is more horizontal than vertical.

For smaller companies, what are some effective tools for employee growth (and retention)? For example, how can they effectively use compensation, education, etc?

2 Expert Insights

I ran an SMB growing it from 2 to 120 people and understand that challenge very well.

The most effective “tool” is investing and building a special company culture. Specifically you must invest in people’s connection thus build a coherent, harmonious environment.
This environment will define your retention, growth and all hard KRI’s.

According to statistics that will increase productivity by 22%, profit by 27%, customer satisfaction by 38% and retention by 22%.
The best advice is to go through a transformational process where all employees would journey together from the space of an individual into a space of the collective. Sounds complex but it is not, we are wired by nature to be one whole...

If needed I'd be happy to elaborate.

Creating a learning, growing environment comes naturally to those companies that practice economic transparency. By making the economics of business transparent, involving all employees to understand and share in the improved financial results, employee morale and profits consistently soar.  The clear common goal virtually eliminates the need for top down management.  The trust and focus on the common good captures the employees’ hearts while the information captures their minds.  Commonly referred to as Open-Book Management, this creates an empowered, learning organization.  

I have seen this work in 400+ companies I have worked with in the past 20+years, from small / medium sized companies to larger publicly traded service responsible companies like Southwest Airlines.  This 4 minute MSNBC video of one of my clients provides an example of a privately held company:

Let me know if you would like to discuss this further.  I hope this is helpful.