From an income statement standpoint, recruiting expenses drop when employees are treated well because tenure is high. They know they have it good and will use their smarts to keep the company running well. They’ll even recruit their best performing friends to come on board too. From experience I can tell you that friends working together create an instant camaraderie that is infectious. When you have this recipe for success, you start to really notice how even the littlest turnover is responsible for absolute chaos, which just isn’t good for business. So often we are fooled into believing turnover is a necessary evil. But it’s not.  

Then there is revenue. What’s the statistic? It takes eight times more expense to get a new client than to keep an “old” one.  The best way to beat your competition in a down economy is to let them spend their time tapping on the doors of every potential client in town. Experience has taught me that loyal, committed employees will give a laser beam focus to serving loyal clients and will grow business through their referrals because of it. I always told my employees, keep your word to our current clients and you will never have to cold call. And we never did! I figured, why waste everyone’s time? Friends call when they have a need. Yes, we viewed our clients as friends.

Bottom line, so to speak, is that it doesn’t work to command people to build you a successful company at any cost to them. To have effective contributors, you’ve got to give employees the space they need to thrive physically, emotionally, and spiritually. If you do that, I promise your company will thrive physically, emotionally, and even spiritually too!    

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