Poor Productivity
Productivity is vital in measuring efficiency, and it’s closely tied to profitability. You expect your employees to complete their tasks well and on time. Still, with the increasing prevalence of “quiet quitting,” where employees reduce their efforts to the minimum required, many business owners struggle to get work done. Some studies suggest quiet quitters comprise over 50% of the US workforce. It’s crucial to engage your employees in their jobs. This involves more than just assigning tasks. Here are some suggestions:
- Listen to your staff and address their concerns, such as work hours or working conditions.
- Show your employees that you value them through words and actions, such as offering a sincere “thank you” for a job well done.
- Set a good example by respecting employees’ private lives, allowing them to maintain an excellent work-life balance. Avoid contacting them outside of work hours unless it’s an emergency.
Shrinkage
Shrinkage refers to the loss of earnings due to waste or theft. In retail, it’s often associated with missing inventory. According to a study by the National Retail Federation (NRF), retail shrinkage is a $100 billion problem for businesses in the US, averaging 1.5% each year. You must take a physical count to know precisely what inventory you have. To prevent shrinkage, it’s essential to invest in policies and equipment, even if it costs money in the short run. Here are some tips:
- Place items out of customers’ reach or use security tags.
- Consider installing a security system that uses AI video-based analytics to prevent theft.
- Press charges against offenders to signal that theft will not be tolerated. If shoplifters or employees know the consequences, they may look elsewhere.
Lawsuits
Small businesses are often targeted by nuisance lawsuits based on minor offenses. This is because large companies have the resources to handle any legal issues, while small businesses are more likely to settle to avoid lengthy legal battles that can be expensive. To prevent nuisance lawsuits, consider taking these steps:
- Understand the risk of nuisance lawsuits and ensure your business complies with the Americans with Disabilities Act (ADA).
- Consult a business litigation attorney who can identify potential issues that could lead to nuisance lawsuits.
- Review your insurance coverage to ensure that it covers potential legal costs. Make adjustments as necessary.
