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Employee Retention of Shure Incorporated -
April 16th, 2011
Shure Incorporated is a consumer and professional audio-electronics corporation who designs and manufactures microphones, wireless microphone systems, personal monitor systems, phonograph cartridges, discussion systems, mixers, and digital signal processing. The company also produces listening products, including headphones and high-end earbuds.
Shure was founded by Sidney N. Shure in 1925 as ""The Shure Radio Company"", selling radio parts kits in the days before complete manufactured radios were available. The company's office was located at 19 South Wells Street in downtown Chicago, Illinois. The following year, Shure published its first direct mail catalog, which was one of only six radio parts catalogs in the United States at the time. By 1928, the company had grown to over 75 employees, and Sidney's brother, Samuel J. Shure, joined the company, which was renamed Shure Brothers Company. The company moved into new offices at 335 West Madison Street in Chicago. In 1929, with the advent of the Great Depression and the increased availability of factory-built radios, Shure Brothers Company was forced to greatly reduce their staff and became the exclusive US distributor of a small microphone manufacturer. In 1930, Samuel J. Shure left the company.
Today's economic slowdown is most definitely taxing the average worker's wallet. But at many companies nationwide, employees aren't crying, "Show me the money!" and jumping ship if they don't get a raise. That's because money isn't the "end all, be all" when it comes to employee loyalty and retention, according to the 2008 Management Action Programs Inc. (MAP) Quarterly CEO Survey conducted by Vantage Research. Open communication, employee recognition and involving personnel in decision-making are what people value most in a company. That's why many CEOs will be improving these fundamental business practices, rather than just giving people raises over the next few months, the survey indicates.
"This latest MAP survey shows that the number-one business practice – ‘open communication between management and employees' – was mentioned nearly twice as frequently as 'receiving raises,'" says Allan Hauptfeld, principal of Vantage Research & Consulting of Valencia, Calif. "Clearly, a work environment where employees are recognized as part of the team is more valuable than simply receiving a paycheck."
Lee Froschheiser, president/CEO of MAP , a veteran business-consulting firm that has accelerated sustained growth for over 13,000 companies and 160,000 executives since 1960, says the MAP survey results confirm that savvy business leaders realize the enormous value of motivating employees in non-monetary ways.
"Sure, financial reward is important, but the CEOs we interviewed are choosing to motivate first through other key fundamental strategies," Froschheiser says. "For example, creating a workplace culture that recognizes employees for their professional contribution helps keep 'A' players from jumping ship. Personal growth is another huge motivator for staffers seeking more of a 'security blanket.' Providing a clear career path for your workers, including clearly defined steps for advancement, also pays big dividends in terms of retaining talented employees. Most of all, clearly communicating the company's vision and mission, as well as making employees feel they're playing an important role in the business' overall success are among these CEO's top employee-retention strategies."
In addition, the survey uncovered other newsworthy topics, including:
– The three greatest challenges CEOs are facing in business today:
1) revenue growth; 2) hiring talented employees; and 3) cost
– The people behind a product are about as important as the product
itself. Customers are only slightly more loyal to a company's products
and services than they are to its employees.
– “Cost” isn't driving customer loyalty - even in tough economic times.
To attract/retain customers, many CEOs won't slash prices, but will
increase service/product quality and personal customer experiences
Retaining key employees is central to the success of any business. Keeping qualified and hardworking staff on board will result in greater customer satisfaction, more efficient administration, and improved profitability. Offering incentives above and beyond basic compensation is among the most effective strategies for building employee loyalty and motivating employees to perform well.
According to a study published in the autumn 2006 issue of Personnel Psychology, organizations that eliminate employee incentives can expect a 10% to 20% reduction in their bottom line, while those that implement progressive incentive programs can see a 10% to 20% improvement in employee retention, employee productivity, and profitability.
For any organization, high rates of turnover can be costly and disruptive. A steady stream of exiting employees can take its toll on morale, as well as on the bottom line. When an employee leaves, knowledge and experience walk out the door. Resignation and apathy may set in as staff see their friends and colleagues leave for greener pastures, and those remaining face greater job responsibility and the need to train yet another new hire.
Paying market-rate salaries is, of course, essential to recruiting and retaining staff, as is providing employees with a basic package of health and retirement benefits. But offering top-of-the-line wages and benefit packages to employees is often not possible for smaller businesses. Lacking the economies of scale that allow larger organizations to offer a wide range of benefits and other perks, such as subsidized cafeterias or on-site fitness centers, you may be concerned that your company will be unable to compete for the best staff.
Last edited by pratikkk; April 16th, 2011 at 02:41 PM..