Mills(Post courtesy of Joe Mills at Element Three)
Since the Covid-19 global pandemic, the RV industry has experienced exceptional growth. Alongside the boom in demand, however, many businesses in the sector have experienced the challenge of finding and retaining employees. Combined with intense supply chain challenges, the difficulty in hiring has been front and center for RV business leaders for the last few years. It doesn’t appear to be going away.
Additionally, a new challenge has been layered onto the industry: a looming global recession. As interest rates go up, inflation continues to impact buyers’ power, and overall demand tamps down, RV professionals are preparing for a period of depressed growth. Employees recognize this and are more likely to look outside of the industry than during robust times. I spoke with Element Three’s VP of Talent, Karen Seketa, about how to support your employees – and your business – during periods of uncertainty like our current economic environment.
Cutting well-being is not your “easy button”
Karen’s first piece of advice was to avoid the most common mistake businesses make when times get tough: deprioritizing employee programs which can look like an expense. While many of the programs focused on creating a premier experience for employees showcase as a budget line item, these programs have an incredible impact on the overall employee experience.
Karen’s perspective, “Getting rid of your employee programs during economic downturns has an immeasurable negative effect on your business. Employers say people are their number one priority – when you don’t act that way during tough times, what does that say to the market? How does it impact your team’s morale and your hiring in the future?”
Leading well for your team during downturns means stepping out first, and protecting your team from the uncertainty that is coming. It means being honest about potential constraints, while also continuing to focus on giving them the best resources possible to effectively do their jobs. This commitment pays dividends in the long run and is important to not miss.
Total Rewards > Compensation and Benefits Packages
When many employers design the offer package for their employees, they focus on compensation and benefits – and then stop there. Others toss in some wellness considerations such as a stipend for a gym membership, and perhaps access to an on-site clinic for employees. Fewer go as far as creating a well-being program, and doing so can help you to stand out from the pack.
A well-being program is focused not on what an employee gets from the relationship, but rather how an individual feels due to the environment at work. These programs are focused on four pillars: physical, mental, social, and financial wellness. They take into account that this individual has many components of their life which impact their performance and seeks to provide support in as many of those areas as possible.
How does this look in practice? While there are many ways to create a well-being program, an initial starting point can be to provide resources for your employees to create personal financial plans, create a mental health initiative, and to create the opportunity for your employees to contribute to their community via volunteer hours. The exact details of your well-being program are dependent upon your company values, the types of employees you seek to attract and what they value, and the realities of your business model.
A Focus on Well-being = Financial Win for Employers
While it is clearly rewarding to create a workplace which provides meaningful employment, there are also financial implications to the struggles associated with employee well-being. A couple of statistics to keep in mind:
The average cost of replacing an employee is 213% of their annual compensation (Center for American Progress annual report)
U.S. economy loses $2.2 trillion annually due to negative well-being of employees (Global Wellness Institute)
This is not even taking into account the increased healthcare costs on both the employer and the employee when the four pillars of well-being are left unattended. The overlapping nature of financial, physical, mental, and social problems makes them hard to put exact numbers to – but the statistics above point to the extreme cost of an unhappy, unwell workforce.
If you believe your people are a major asset for the business, take a holistic approach to protect them.
And no, you don’t have to offer work from home.
One thing you will run into over and over again when looking for ways to improve your employee experience is a recommendation on a remote-first workplace, or a hybrid work environment. These can be great. But the reality is that RVs are not built or sold sitting at your kitchen table. They are built in factories and sold on dealer floors throughout the country, and for the foreseeable future that will continue to be the case.
Don’t allow frustration with advice given to digital first organizations stop you from creating an impactful well-being program for your organization. It will pay dividends down the line as your employees feel secure and supported by your team through economic uncertainty.
Joe Mills is the Business Development Manager at Element Three, a marketing consultancy that works with some of the nation’s top RV brands.
