Biggest Issues Facing Managers

Alando Ford MGT521/Management Jim Holst October 25, 2009 Retention One of the most pressing challenges facing today’s managers is keeping their best people. In today’s economy companies separate themselves by the talented people they recruit. Some ways companies can improve their retention rate are obvious. One way companies can cut turnover is by qualifying the personnel they are hiring and carefully analyzing what the different roles in their organization are. Next they must make a realistic decision regarding what skills and abilities are required to fill this role. Recent research has proven that there is a direct link between training and employee retention. Employees involved in ongoing training feel that their employer is interested in them doing a good job, and the employer cares enough about them to make an investment in their development. â€Å"Training can also be the means for positive change in any organization; however, training is not enough to create lasting change without a vital link that will help employees transfer what they learned into real-life application. That vital link is a strong coaching program. Coaching comprise the following features which needs to be articulated in the best manner in order to get one hundred percent from the employees†. (Mirsha, Remedies for the biggest challenges in business today, pg. 1 para. 3). Strategy and cost effective business models â€Å"Personally I believe that the most difficult task is finding a positive cash flow business model. It isn’t that difficult to source good products, and customers will appear if sufficient money is spent on advertising or other promotion. This is all pointless if the cost exceeds the revenue from all of this, i. e. he net assets of a business fall to zero, and the business ceases to operate†. (Mark McIlroy-Director, Blue Sky Technology) With the economy in a crisis and unemployment at staggering rates, businesses of all types are feeling the crunch. Companies must continue to focus on customer service. This practice will help retain their existing client base, while allowing them to make a posi tive impression on new customers. In the flow of business, people are the most important element no matter the product or service. Creating partnerships reduce costs and increase referral rates when companies align themselves. Even the most pessimistic of economists today are saying that the actual numbers in the current recessions are a reduction in gross domestic product (GDP) by two percent annually and just through 2009, and yet most businesses talk and act if business is off thirty percent. (Johnese, 2009, Today’s Business Professional) So, the number one challenge is to realize that it might be harder to do business right now, but there’s more business to be done, market share to be gained, while the other guy sits around or slows down waiting for things to improve. † (Stephen Kann- CEO at Policy Settlement Associates, Inc. Conclusion By understanding the factors that drive business in today’s economy companies will be better prepared to be successful in this market. They will have to rely more on the skills and tools they have available. They will have to become more aggressive when it comes to recruiting and retaining good employees. Companies need to continue to revamp o lder processes that no longer work, by adding newer more innovative systems. Companies should understand that the challenge that lies ahead is transitioning from a service provider to a business manager. This transition will be necessary; if the primary goal of the business is to make money. Companies will be able to increase their profits while minimizing their losses. Admin (2009, February 16). Today’s Small Business Challenges. Retrieved from http://www. babeofbusiness. com Johnese, Daniel (2007). Today’s Business Professional. Retrieved from http://www. jobbankusa. com Mishra, Sonika(2008,October 13). Employee Retention- Remedies for the Biggest Challenge in Business Today. Retrieved from http://www. articlesbase. com