Is It True That The Quality Of My Workforce Can Make My Company More Valuable?
How does that work? How about an example?
It does seem intuitively obvious to most of us that with the continuous struggle to find and retain quality employees, that a buyer would value a company with employees that are experienced, well-trained, positively oriented and team players. If that’s true, then how would a buyer measure whether that is true or not without interviewing employees and managers?
Simple, they look for the “symptoms” of a great workforce. Some of them would be anecdotal like the ones in my example below. There are several other objective measurements that you (and a potential buyer or valuator) can use to explore your workforce. These include:
- Employee retention 90 percent or higher
- Employee promotions from within
- Employee satisfaction surveys
- Number of referrals from existing employees to recruit new employees
- Word of mouth from others in the industry
- Positive feedback from your clients
- High production levels above industry standards
- Employee participation in training for enhanced skills
- Employee participation in suggestions for process improvements
- Employee rewards and recognition for achievements
Wouldn’t you like to be leading a company of enthusiastic individuals who are clear on their goals? Who focus on how they can support one another to accomplish them? I bet you can name one or more of those companies (hopefully, yours is one of them) off the top of your head.
One of my favorites is Midwest Groundcovers. (They are not my client, in fact, I am their client.) Midwest Groundcovers has, for many years, consistently been an example of a great culture that is alive in many ways, most especially in their great employee workforce. The grounds are always well maintained, even the “behind the scenes” areas behind the greenhouses. The workers at all levels are smiling, helpful and happy. The quality of the plant material is outstanding.
Last summer I was impressed to see a team driving around on a July afternoon offering popsicles to the workers who were loading plants in the blazing sun. All of them were having fun while doing their work and involving their customers. Every encounter I have ever had, from trade shows, through managers giving tours, to customer service on the phone, to the horticulturalists who train and educate in their “spare time” –everyone has a smile and a serving spirit.
Last summer I worked on a project (pro bono) for a local church (their Laudato SI garden – a few photos here https://sttheresaparish5.flocknote.com/note/22795588) and the Midwest Groundcovers driver asked about the project (with so many volunteers on hand at 7 a.m.) and made a financial contribution! How about that for caring and engaging with customers.
I am willing to bet that their measurements of employee productivity and satisfaction are all very high. I am also sure that the culture lives beyond the original founders and will continue as a tribute to them in future.
Can you measure the quality of your workforce? It’s never too early or late to start with a goal of measuring your “here” and setting objectives for your “there”. Not only will you improve your current workforce productivity, culture, and satisfaction, but all of these add value to your company for your future exit plan, whether that be to sell your company, transfer it internally or buy another company and integrate those employees into your healthy workforce.
If you’d like to have a discussion about where to start, please reach out to me at 224-688-8838 or email me at [email protected].
We’re here to help you Harvest Your Potential!
