Bob Lee has a nice way of saying thank you. When Swiger Coil Systems exceeds its quarterly revenue and profit goals, employees each get a gain-sharing check. Record months warrant an extra $100 bill from the CEO.
Lee took over the company more than two years ago, hiring more sales reps to aggressively pursue new business. As a result, the manufacturer of electric motor and generator coils grew revenues even during the recession and slow economic recovery.
The fourth quarter of 2009, however, was an exception. “It was a tough quarter for us because of what was going on in some industries we serve and the economy, which were beyond our control,” says Mike Trivisonno, Swiger’s chief financial officer.
There were no gain-sharing bonuses this time. But Lee still handed out $100 bills to everyone because he wanted to thank them and keep them motivated.
“Bob doesn’t feel the business is doing well just because of him. He knows that everyone in the company contributes to its success,” Trivisonno says. “The hard work of our employees has helped us weather the economic storm, so we do everything we can to keep them.”
Financial rewards returning
As the economy improves, many companies expect to reward employees who have been asked to do more with less for the past few years.
A recent national survey by employment agency Accountemps showed that 48 percent of chief financial officers plan to raise salaries, and 50 percent will promote top performing employees when business picks up.
If calls to the Employers Resource Council during the first quarter of 2010 are any indication, that may be the case. During that period, help desk questions from ERC clients in regard to layoffs have plummeted by 88 percent.
More important, however, is that calls from clients about compensation adjustments and hiring have increased by 71 percent and 150 percent, respectively.
“This could be a positive sign that companies are looking at where they stand relative to what the market is offering in compensation and benefits,” says Marty Mordarski, ERC’s director of research and membership. “It seems that companies are making some salary adjustments, which we haven’t seen in a couple of years.”
Rick Hughes, principal of AlphaHR, a member of the Alpha Group in Independence, finds compensation levels are generally flat, with only a few of his manufacturing and professional clients showing increases. His construction clients, however, have not lifted a two-year wage freeze, and some construction firms have even cut salaries.
“We’re seeing more employers going to a variable compensation strategy such as profit-sharing incentives to control their costs,” Hughes explains. “If the company is producing and making money, it shares those profits with employees at the end of the month.”
For one of Hughes’ manufacturing clients, employees who are earning $12 to $20 an hour have been receiving profit-sharing bonus checks of up to $600 a month.
To be eligible for these profit-sharing checks, however, employees must have a good attendance record, arrive to work on time and not leave the workplace early.
Because these requirements have significantly reduced absenteeism and tardiness, the company’s productivity has increased. For employees who fail to qualify for the bonuses, their share is donated to local charities.
Reinvesting in employee training
With talent at a premium, companies are spending what money is available to train and develop their best people.
“Organizations are definitely starting to reinvest in employee training,” observes ERC’s Mordarski. “But companies are not sending people to out-of-town conferences. Instead, organizations are bringing in professionals to do the training at the workplace. Companies know they are going to get a lot more value by conducting training programs at the workplace.”
Employee retention is a huge issue in the call center industry, where the average employee retention rate ranges from 10 to 30 percent, says Steve Brubaker, chief of staff at Akron-based InfoCision Management Corp.
Employees at InfoCision receive 92 hours of training, and the retention rate is 90 percent. Last year, more than 800 of the company’s 1,000 employees also took 68 hours of career and professional development courses at InfoCision Management Corporate University.
“Many of our competitors hire a lot of college students and part-time people, which makes it very difficult to create a career mindset among your employees,” Brubaker says. “We hire mostly mature, full-time people and invest a lot in employee training, maintaining beautiful facilities, developing a strong team atmosphere and providing creative benefits that help our employees and the company grow.”
Five years ago, InfoCision opened Wellness Clinics, staffed by either a full-time physician or a nurse practitioner, at its call centers. For a small fee, employees can see a health care professional without making an appointment.
The clinics are also open to employees’ family members. When employees get a prescription, the pharmacy fills and delivers it before the end of the workday.
InfoCision also operates fitness centers staffed by a wellness coordinator. Employees can take various fitness classes, receive personal training and keep track of important health metrics such as blood pressure and weight loss. On-site day care services are available as well.
The wellness efforts have substantially reduced health care premium costs from annual double-digit increases to just low single-digit premium hikes over the last two years.
“Our employees love the Wellness Clinics, and they have met our return on investment expectations,” Brubaker says.
Despite the sluggish economic recovery and companies opening call centers in low-cost countries such as India, Singapore and the Phillipines, InfoCision continues to grow its operations in Northeast Ohio, Pennsylvania and West Virginia. In March, the company announced it is adding 400 employees at its Austintown and Boardman call centers, which will increase the work force to 1,400.
“That is where we have the competitive advantage,” Brubaker explains. “We work hard to create an ideal customer experience, and that starts with having the right people on the phone.”
Creating a great workplace
At Findaway World, talent can express itself in whatever way employees see fit.
“We try to create a fun workplace where people work hard but where they are also welcome to be themselves, such as dressing how they want to dress,” says Erica DiFranco, Findaway’s human resources manager. “So if an employee wants to come to work dressed in jeans and flip-flops, that’s OK.”
At the Solon company, which makes digital audio players preloaded with audiobooks or other content, Findawayers (as employees are called within the company) are also encouraged to enjoy their work and personal lives. If they want to see their kids play in an afternoon baseball game, they are free to do so. If they need to work at home to care for an ill relative, that’s not a problem.
The company is organized into self-managed teams such as a cost-savings team and a green team. As a way to build camaraderie, it’s common for teams to take organized outings together to restaurants, play games during work hours, enjoy an afternoon sailing the Lake Erie islands or go bowling.
Apparently, Findaway World’s workplace philosophy is paying off, too. The company posted revenues of less than $3 million in 2005. Four years later, revenues jumped to more than $20 million. Last year, Findaway World was named to the Inc. 500 list of fastest-growing companies in America.
“By emphasizing our core values and putting our culture first, the business results just come because we treat our employees so well, and that motivates them to perform,” DiFranco explains. “People want to work for a winner, and that can help companies take their growth to higher levels.”
Helping employees grow
For many employees, personal and career growth is just as important.
Swiger Coil Systems, for example, works to help employees meet their highest potential by providing job rotation, job shadowing, special assignments, career coaching and counseling, and leadership development.
“Swiger doesn’t want to see an employee stuck doing the same job for 30 years,” explains Caytie Matti, Swiger’s human resources manager.
The company provides regular training-needs assessments, and supervisors are evaluated on how well they mentor employees.
Matti is one of Swiger’s success stories. She started at Swiger as a human resources generalist and earned a master’s degree in labor relations and human resources through the company’s tuition reimbursement program.
“Now I am manager of Swiger’s human resources department,” she says. “Anyone can do that in the company.”
About 15 percent of Swiger’s 200 employees have more than 20 years of service. The company puts a premium on keeping its top people through good times and bad.
“It’s still important to have a great workplace and to hold on to your best employees even when your company is struggling,” says ERC’s Mordarski. “By retaining your best employees, it puts your company in a much better competitive position during an improving economy.”