Tag: Business Tips

Tough Times Call for Worker Morale Boost

The poor economy has been tough on American businesses, but it’s been tough on American workers too. Many employers are fighting low morale in their work forces as employees struggle with increased stress from financial worries on the job and at home. Poor morale negatively impacts production efficiency and product quality, decreases customer service, and can result in higher levels of workplace injury and absenteeism. Savvy businessmen will keep an eye on employee morale and address issues before they start to affect work quality.

The poor economy has created significant on the job stress for American workers. Many workers fear losing their jobs or being caught in the next round of layoffs. Even unpaid furloughs can cause significant financial strain. Those who still have jobs may not only suffer from survivor guilt when friends are laid off, but feel the pressure to pick up the slack from a reduced work force. With most companies cutting personnel to reduce costs, workers are being forced to accomplish more work with fewer people. Hiring freezes, loss of bonuses, reduced health care benefits and other measures necessary to keep businesses operating put further financial pressure on workers and have a demoralizing effect on a workforce that already feels over-burdened. Add in financial worries at home — mortgage payments, fear of foreclosure, high credit card bills, rising medical costs, high food and gas costs — and it can be tough for workers to fully focus on the job and stay motivated.

Business owners may have to step in and give workers a morale boost to help them get through these tough economic times. Here are some things business owners can do to boost morale and make workers feel needed and appreciated:

  • Personal touch. Make an effort to know your employees individually. Let them know you care about their lives, families and goals. In large operations, shift or line managers may fill this role; but anytime the owner recognizes employees personally, it boosts morale.
  • Roll up your sleeves. Whenever you can, roll up your sleeves and work along side your employees. Employees appreciate a boss who doesn’t mind getting his hands dirty and is willing to share the load.
  • Make it personal. Spend more time communicating face-to-face and less time communicating via email, phone and memorandums. Taking the time to make communication personal shows you value your employees as individuals.
  • Empower. Ask your employees for input and suggestions. Showing you value their opinions allows employees to feel they have a personal stake in the company.
  • Share your vision. Share your ideas and dreams for the business with your employees. Let them know you understand their concerns and are working toward a brighter future for all of you.

New Marketing Strategies Needed to Survive Lean Years Ahead

With the economic prognosis dim for 2009, U.S. manufacturers and businessmen need to rethink basic marketing strategies. Gone are the comfortable days of order backlog that manufacturers have enjoyed since the post-WWII. Everyone is scrambling to find new customers and new markets for their products. As Doug Gregory of Diamond Group Marketing pointed out in a February 9, 2009 article on Manufacturing & Technology eJournal, “you can’t cut and save your way to survival and profitability.”

To survive the next few lean years, you’re going to have to take excellent care of your current customers and work hard to find new ones. Gregory recommends a number of marketing strategies proven during previous downturns to help companies survive and even thrive. We’ve added some comments based on the benefit of our own experience here at DJ Products in building a successful material handling company with a national reputation for innovation, quality products and superior customer service.

  • Aggressive marketing. Many companies cut back on marketing efforts during a downturn. Survivors will buck the tide and increase marketing across the board. During tough economic times, potential customers do more shopping around looking for the best bargains. Getting your company name out there where they’re looking gives you a better chance to snag the sale.
  • Customer service. Without your customers you won’t have a business. Keeping customers happy must always be a top priority. During economic downturns competition heats up and you have to work even harder to keep your customers from jumping ship and going with the competition. Keep in regular contact with your customers so you’re right there to meet their needs as they arise. In a downturn, companies typically decrease inventories to cut expenses. You’ll benefit if you can provide customers with fast order turnaround and guaranteed delivery dates.
  • Strategic diversification. A tight economy forces you to expand and diversify your customer list, but make sure you don’t lose your core focus. You don’t want to dilute the expertise that sets you apart from your competitors and draws customers to you in the first place. Look for new customers with needs similar to those you now serve. Take a look at your current customers’ competition. With the same needs as your present customers, they present a ready market for your products.

Next time: Where to look for new marketing opportunities.

Where to Find New Marketing Opportunities

Competition is even tougher than it was before. Most sectors of the economy are expected to post losses through 2009 with little improvement expected until sometime in 2010. The bottom line is that for the next year or two everyone is going to be scrambling for a bite of a much smaller pie. In our last post we shared survival tips from DJ Products’ own experience and from Doug Gregory of Diamond Group Marketing (see his February 9, 2009 article on Manufacturing & Technology eJournal). Aggressive marketing, superior customer service and strategic diversification can help your business survive a bear economy, but to thrive you’re going to have to start searching for new customers.

Gregory and others agree that there are bright spots glimmering amidst the general economic gloom. Certain industries are expected to thrive and grow in the coming few years despite the downturn. Savvy firms will target marketing and sales campaigns to take advantage of expected growth in the following economic sectors:

  • Food industry. As Rally’s, a local burger joint, advertises, “You gotta eat!” The entire food supply chain from farm to table provides multiple opportunities for growing your customer base. Agricultural equipment, fertilizer, transportation, processing, packaging and retailing are just the tip of the food industry pyramid.
  • Pharmaceutical/health care industries. Baby Boomers, the world’s largest population segment, are aging. Demand for pharmaceuticals, health care products and health care services is expected to increase and remain steady over the next three decades.
  • Energy industry. Companies that produce, process or deliver energy products are excellent growth targets. With support from President Obama, increasing federal funds will fuel the development of alternative energy options. However, viable nationwide replacement of current energy sources is years, even decades, in the future. Current oil, gas and coal operations are expected remain strong with increases coming in their development of new, cleaner, more cost efficient applications for their products.
  • Transportation industry. Traditional transportation will still flounder for a while until production volumes and consumer spending improve. But there will be opportunity in infrastructure improvement and rebuilding fueled by federal stimulus spending and job creation. And watch for opportunities in new public transportation options still on the drawing board. Last year public transportation ridership posted a 52-year record high. As America struggles with energy issues and global warming, expect increases in innovative mass transit projects.
  • Look south. Southeast and Gulf Coast states are experiencing a manufacturing boom benefiting in part from post-Katrina spending. Census figures indicate that Americans are moving south, seeking jobs and better weather. Environmentalists are leery about the Southwest, however; which is already experiencing water shortages and some fear believe is on the cusp of long-term, possibly terminal draught.