The Importance Of Options

I was cited in a post about how to Reduce Employee Turnover at Your Small Business, published last year by My Corporation.

My tip was to offer alternative promotion tracks, and ran as follows:

“Sometimes employees mistakenly believe that to advance,
they need to go into management. Not everyone is suited to
be a manager — so be sure to offer alternative promotion tracks.”

So am I a human resources consultant on the side? Hardly.

But I did work for a couple of insurance companies before I decided to freelance full-time as an illustrator. I’ve seen a certain sad scenario play out more than once. It goes like this:

There’s an analyst or programmer who can solve all sorts of technical problems. Their reward: they get promoted to management. They become supervisors. They have to manage people. And they hate it. They’re miserable, and so’s their team. They’d rather be solving technical problems.

A smart company avoids the above scenario by providing another option: an alternative promotional track; in the above case, it would probably equate to an enhanced job title at a higher pay grade.

It’s a win-win: the employee’s happy and feels respected, and the company’s boosted the odds of retaining the employee.

Giving people options works to advantage. Instead of “take it or leave it” (a win-lose), you give people some wiggle room.

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That’s why, when someone asks me for a quote, I try to come up with at least three options. On my FAQ Page, I put it this way:

Depending on the job, I often use an approach called “three-tier pricing.” I say: we could do this, or this, or that, and supply three different prices. Sometimes I offer more options
if the job is open-ended. Everyone’s more comfortable when they have options.

So the “provide options” tip for retaining employees is also good advice for freelancers who want to acquire and retain good clients.

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What were some of the other tips for reducing turnover and retaining employees at a small business?

Hire the right people to begin with; mentor employees; show appreciation; build a company culture they’ll want to be part of; check in regularly to see if they’re struggling with something; give feedback; provide training to boost engagement.

As I read thru the list, a light bulb popped on over my head: those were all tips I could use as a freelancer, even tho I’m a one-person shop.

That’s because they apply equally well to attracting and retaining clients (as opposed to employees).

To that end, I’d rephrase them as follows:

1. Hire the right clients to begin with ➡️ say no to clients and jobs   that aren’t right for you

2. “Mentor” clients ➡️ educate them: explain your process, how   you work, what’s expected

3. Show appreciation ➡️ thank them for their business, promote   their posts, send them news they can use

4. Have an attractive “freelancer culture” ➡️ be a true collaborator,   invest in your clients’ success