I’ve got a spa owner client we’ll call Katie. Katie’s business was doing really well and growing month over month. She had a spa manager who she thought was doing well and showed a lot of promise. However, the manager abruptly left and took half of Katie’s employees with her. Because she didn’t have enough staff to serve her clients, over the next two months sales dropped over 40% and created a major cash crunch.

Katie was frustrated, scared, and overwhelmed. She learned a really tough lesson - culture matters. While competitive pay is important, pay alone isn’t enough to retain employees. Employees need to feel aligned with your organization, not only to stick around, but also to work toward your business’s goals.

Katie’s manager and the employees that left when she did were not a good fit with Katie’s business. The employees that stayed loved it and are still there. Katie has since found a manager that is a great fit and exemplifies her vision and values. It took Katie almost a year to replace all of her employees and get back to a full staff, but she is now headed in the right direction and winning clients back.

So what can you do to make sure that this never happens to your business?

1. Define your vision and values

   This seems like something that’s not really necessary to start a business, so most business owners don’t take the time to do it at first. But if you don’t, you can end up in a situation like Katie’s. Make sure to take the time to get your vision and values clearly articulated. Getting your team involved will help you come up with them and also get their buy-in. Your vision should really paint a picture of what you want your business to create in the world, while your values should guide your actions and decisions. There are some really good books on this - Traction by Gino Wickman and The Advantage by Patrick Lencioni. I’ll put links to those below.

2. Integrate your values into the hiring process

   Evaluate candidates not only based on their skills and experience but also on their cultural fit with your organization. During interviews, share your company's vision and values with them and ask if they resonate. Look for individuals whose personal beliefs and goals align with the direction of your business. Think about how they embody your business's values and how they would contribute to the overall culture of your team.

3. Invest in onboarding

   Once you've selected the right candidates, invest in thorough onboarding processes to ensure they understand and embrace your vision and values from day one. Provide training and resources that empower them to contribute meaningfully to the success of your business.

4. Regularly reinforce your vision and values

   Remind your team of your vision and values regularly. Incorporate them into your meetings, presentations, and day-to-day interactions. When employees understand and connect with the vision and values of your business, they are more likely to work toward your goals.

I know it’s easy to get stuck in the day to day, but really taking time to define your vision and values and then constantly revisiting them with employees is critical. This will not only prevent major staffing disasters, but it will also keep everyone working together toward achieving your goals.

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