SOUTHERN HIGHLANDS RESEARCH, CONSULTANCY AND PUBLICATION COMPANY LIMITED (SHIRECOP CO.LTD)

The people factor

How often have you entered a shop, only to be mistreated or worse, ignored by an employee who doesn’t share the values of the business he/she works for? “A successful business revolves around managing relationships with your employees, customers and even your suppliers,” says Amrei Botha, Head of SME Banking Africa at Standard Bank. “Ignore these relationships at your peril.”

Employees
Employees are assets who must be carefully selected and cared for. So how do you keep quality workers on your team? The following guidelines can help employees feel they are part of your business:

• Earn respect – Lead by example. Don’t make excuses for a problem or your own lack of knowledge.
• Be consistent – Prove that you are reliable by behaving consistently with staff.
• Create unity – Look after your employees and create an environment that fosters unity amongst employees.
• Be honest – Openly share information that will enable employees to work more productively.
• Be fair – Treat staff equally, follow fair market practices and adhere to various laws that govern the workplace.
• Communicate – This is a two-way process. Update employees on developments within the business and encourage them to provide feedback.

Choose carefully between employing contract or temporary employees versus permanent employees in your business. Temporary employees are not as loyal to your business or caring about the needs of your customers as permanent employees tend to be. And despite the fact that temporary employees are seen to be less costly to the business, high staff turnover and repeated training may actually cost the business more.
The result of your efforts will be loyal employees who work optimally, understand your business and contribute to its success.

Customers
You can sell most easily to somebody who has bought your product before so you need to treat your customers well to ensure that you get repeat business and referrals. One of the best ways to do this is to make sure that everyone in your business has a thorough understanding of what your customers really want.
It is estimated that 90% of customers who feel wronged never complain. They just take their business elsewhere. You can improve customer satisfaction by actively seeking and encouraging feedback. Develop a system that enables you to capture, record and report information quickly and easily.
However, asking for feedback is not enough if you don’t address the issues that arise.  Although no one likes negative feedback, the way in which you handle it can determine if your customer comes back. It is important to convey the following messages:

• We listen and don’t pass the blame
• We are responsive to your needs
• We are committed to improvement
• We value your business

​Building customer relationships pays big time

Studies show that customers who have an affinity towards a business:
Buy more often;
Spend more than first-time customers;
Cost less to acquire (because they already know your business);
Pay a premium for your product; and
Refer new customers
 

Suppliers
Suppliers give you more than the products or services you need for your business. They can be valuable sources of information on new products, what your competitors are doing and new opportunities in the market. Your goal should be to build good relationships with suppliers who give you the right products for the right price.
However, try to limit the number of vendors and follow these tips on managing them better:

• Ask for discounts – Ask your supplier what you can do to secure better pricing. Many suppliers provide discounts for early payment.
• Improve service – If you have a service-related problem with your supplier, say something and give them a chance to remedy the situation.
• Encourage a closer working relationship.

Managing people need not be like treading a minefield. Treating people with respect and listening to their needs will go a long way to managing these relationships effectively.