We’re not In the Chicken Business, We’re in the People Business
While it may appear that PFSbrands is in the chicken business, we are actually in the people business. That might not make sense at first glance, but let me explain by starting off with our Core Purpose which is: “To help others become more successful in work and in life.”
Our Mission Statement reads:
“We exist to empower our employees and allow them the opportunity to build their futures by providing all of our customers with consistent, high quality food products at reasonable prices and assisting our retail customers in operating profitable locations.”
First and foremost we are here for our employee owners. It’s all about creating the culture that empowers our employee owners. We have worked incredibly hard to create a culture that allows our employee owners to make their own decisions. One example of this, is that all of our general ledger lines are owned by an employee owner who gets to make their own decisions regarding it. It’s something they don’t take lightly. They strive to be more efficient and thus they improve the company along the way. By allowing our employee owners to have a stake in the outcome, they strive to cut spending, improve sales and become as efficient as possible because they are invested in the bottom-line.
We strive to create a culture of success, we want to create a family atmosphere. Your employees typically spend more time together at work than they do with their actual families. That’s why you need to create an energetic, family atmosphere they feel comfortable in and don’t dread. We don’t want anyone coming into the office every morning dreading that they have to go work at PFSbrands…
This is easier said than done and a great culture starts with the hiring process. While the hiring process is an entire topic by itself, just remember to hire for cultural fit and then train accordingly. If you hire a person with the right attitude, you can train them the skills they need to know. If you get both cultural fit and a great skill set, then you’ve got a real A Player.
As we continue to focus on the culture of our company, this also means helping and investing in the continuous education of our employee owners. Provide the educational tools your employees can use to improve their own performance and the company’s performance. Innovation starts with education and the freedom to think outside the box. This could be a game changer for you.
Investing in your employees empowers them to do the best they can and ultimately it helps your customers. By holding your employees to a higher standard they will in turn hold their performance to a higher standard. This is applicable to any industry you’re in. Empower your employees and they will help your customers be more successful.
Why People Matter to Your Bottom-Line
For many, creating a great place to work and helping your employees become more successful doesn’t hit home until you start to look at turnover rates. According to CompData Surveys, in 2016 across the United States, there was a 17.8% employee turnover rate. The numbers get real when we look at how much that can cost your business. Take these stats directly from ZaneBenefits:
- 16 percent of annual salary for high-turnover, lower-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.
- 20 percent of annual salary for midrange positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.
- Up to 213 percent of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
For a business with 100 employees that loses 18 employees a year, the costs add up to be significant. If you lose 13 lower-paying jobs (using the statistics above that would be a total cost of $43,264) and 6 midrange positions (total cost of $48,000) that equates to $91,264. That’s nearly $100K annually and this doesn’t consider a CEO leaving. You can play with these numbers and percentages to match your industry and company, but the fact remains that turnover is a bottom-line killer.
These numbers will hopefully encourage you to focus on your employee’s state of mind and start acting like you’re in the people business. Not only is it financially wise, it’s the right thing to do for your company. A few workplace culture improvements will likely decrease your turnover and ultimately save you thousands of dollars per year.
Being in the business of helping people succeed isn’t just a monetary improvement for your company, it is simply the right thing to do. As Richard Branson said in a Big Think episode, “The most important thing about running a company is to remember what a company is. A company is simply a group of people and as a leader of people you have to be a great listener, a great motivator, you have to be great at praising and looking for the very best in people.”
Look for the very best in people and more often than not, you will find it. The success of your business lies in you providing your employees the tools to be successful, who in turn pay it forward to your customers. With this strategy, in the end, everyone wins!