ERP Archives - Page 9 of 22

Two Sides to Every Cloud ERP Adoption Story

by EstesCloud | Dec 29, 2021 | Cloud, Disaster Recovery, ERP, ERP Implementation, Hosting, Managed IT Services

Understanding Your Move to the Cloud

Cloud adoption is often as unique as your company culture. However, the common benefits of cloud adoption abound. You can save time and money while increasing security, availability, and scalability. If you choose a cloud-based ERP deployment, what do you need for a successful cloud migration? Do you need to have a Shakespearean team ready to write the future story of your company? Once on the stage, will your cloud adoption tale be a tragedy or a comedy? Let’s try to understand the people behind your move to the cloud to better write your cloud adoption plan.

Cloud experts (consultants, migration specialists, engineers)
Enterprise resource planning experts (ERP consultants, trained employees)
Decision makers (steering committee members, owners, leaders)
Cloud ERP users (internal staff, external support)
Data center staff (consultants, architects, engineers, help desk team members)

Do you need cloud-savvy ERP experts on your team?

Make better decisions when moving your business applications to the cloud by balancing your decision-making team with your hands-on enterprise resource planning (ERP) talent. You can save even more time and money by supporting your in-house managers with ERP and cloud ERP consultants or experts when needed.

Quick Cloud ERP Adoption Planning Tip

An independent ERP consultancy can offer you an unbiased view of your decisions ahead, especially when it comes to newer technology and software releases.

Who will write your first line of cloud code?

Choosing a cloud for an ERP system might begin with someone on your IT team who has a progressive vision for the technological management of your company. Or, an ERP system, like Epicor Kinetic or Epicor Prophet 21, might be purchased simultaneously with cloud ERP project team formation and then guided by key players, such as company owners, CEOs, CIOs, and onward.

Understanding Your Business Cloud Requirements

A cloud ERP vendor might try to convince you that Software as a Service (SaaS) is your best, even your only, option. However, before you sign up for a data migration to a public cloud, consider private cloud or hybrid cloud platforms.

An ERP solution adapts to your unique cloud strategy. Once you understand your cloud ERP solution options and decide that your project plan should indeed migrate away from on-premise infrastructure, it’s time to solidify teams and team strategies. Your ERP implementation team needs both thinkers and doers.

The Thinkers

Your steering group will monitor the progress of your project ensuring it stays on track to complete on time and on budget. This group also will provide support for the project making sure needed resources are available to the project as needed and helping to backfill when those resources are taken from another part of the business.

The project manager is part of this group. Regularly the project manager will provide status reports and predictions for the immediate future of the project. An executive sponsor represents top management and is part of the steering group. That person will report project status to the C-level team.

When there is a champion who was instrumental in moving the software acquisition along and likes their role keeping the business excited about the prospect the software will bring, that champion should be on the steering group. Some representation from departments and functions that will use the new software might also have a seat in this group.

The Doers

Your cloud ERP implementation team should include leaders from departments across the business. They are directly involved in the overall implementation of this software and its IT infrastructure and, in most cases, they and their peers will use the new software daily. Most of the people in this group will be full-time talent serving on the software project but will keep in contact with their former co-workers in the functions they came from.

Often people who were group managers get assigned to this group, but there is no reason to limit the team to managers or former managers. Team members should be passionate about the new ERP system, its infrastructure, and the benefits expected. They should be very knowledgeable in their particular function and have some expertise in the use of the ERP software and process flows throughout the business.

Members of the cloud ERP implementation team will coordinate work in sub-teams that will test transactions related to their functional area. As testing progresses, cloud ERP team members will coordinate testing that extends to more than one function.

This group of people must keep in contact with their previous functional groups ensuring they know about any new changes or challenges. Managers of those functions will want to know the progress of the software implementation and will want to make choices when options in the implementation arise.

This team will help set up training and the training processes that will be used to share knowledge developed during implementation with the users who will need that knowledge to do their work with the new system.

Implementation team members do not need to be information technology gurus. They should understand some basic concepts related to IT and databases. This team will be directly involved in capturing legacy data and moving that data to the new software and, ultimately, to the cloud infrastructure of your choosing.

Look for the following indicators of a successful cloud adoption plan execution when choosing your cloud provider, your data center, and your cloud ERP implementation partner:

Is this a vendor trying to upsell you? Can a vendor-managed SaaS ERP system support your growing business?
Can your cloud provider meet your budget needs while adapting to your project timeline?
Does your cloud provider have a strong history and good reputation?
Does your cloud provider’s data center meet your needs for uptime and security?
Does your potential cloud ERP partner provide staff that will fit into your ERP culture?
Will the cloud provider understand your enterprise resource planning methodology and serve as a source of expertise for your ERP software and the full spectrum of its deployment options?

Will cloud ERP adoption improve your business today?

Enterprise resource planning (ERP) software implementation is a long, challenging commitment that involves dozens of people working together toward a common goal. Your go-live in the cloud will be one of the most rewarding and promising days in your company’s story. You can expect immediate results as soon as your team is empowered by both the software and its underlying technology.

To begin work as cloud ERP implementation team members, training is key. Your cloud provider will enroll your team in an in-depth training for your new cloud-based ERP system. Your team will learn how cloud computing works, especially from the cybersecurity aspect, and will quickly become astute through real-time support for the new business processes. Part of the training will be introductions to developers and system support personnel at your cloud provider. Implementation team members will not need to solve every problem but will know where to look for the answers.

EstesGroup provides on-premise ERP expertise while also fully supporting cloud migrations to private clouds, hybrid clouds, and SaaS projects. Are you ready to take advantage of internet connectivity to move beyond on-site servers? Do you need help building a cloud ERP plan for 2022? We have Epicor Kinetic ERP hosting, Epicor Prophet 21 ERP hosting, Sage hosting, and Syspro hosting experts standing by, ready to answer your questions about cloud migrations for both new and old ERP systems. Our experts can help you meet your business requirements so that you stay competitive while reducing cost across your infrastructure.

Get help now with your cloud ERP adoption strategy

Epicor Kinetic Upgrade: A Customer Perspective

by Rob McMillen | Nov 5, 2021 | Cloud, Epicor, Epicor Kinetic, ERP, ERP Implementation, Hosting

An Interview with an Epicor Kinetic User

I recently had the opportunity to sit down with an Epicor customer to discuss their recent upgrade to Epicor Kinetic 2021.1. For many Epicor customers, this is a decision they will be facing in the next 12 months since the Epicor lifecycle for 10.2.700 will create a decision point in September 2022.

During the discussion, we covered a lot of questions that are commonly asked. My hope is that what you learn here will be an input to your thought process about when and how to upgrade to Epicor Kinetic.

Conservation of Manufacturing Energy

Epicor History

This customer has been using Epicor for almost 8 years after they went live on version 10x. After the implementation they fell into the habit of not upgrading on a cadence. They regretted this because it made upgrades more challenging. Plus maintaining an Epicor upgrade cadence would have benefited them with better Epicor support, fixes, and new features. In their situation they were faced with upgrading to Epicor Kinetic from V10.2.200.

They currently have 35 users and expect to expand to 50 users in the next 12 months. They do light manufacturing and lean more to the distribution side of the spectrum. They also use Electronic Data Interchange (EDI) and a Business Intelligence (BI) solution that interfaces with Epicor.

Upgrade to Kinetic

The upgrade process took them about 90 days of effort. Knowing that future upgrades are released regularly, they invested front-end effort into documenting their business processes, end-user procedures and customizations. They also developed standard test plans that they can reuse in the future when they need to do upgrades.

They are expecting this investment to pay off as they move to 2021.2 later this Fall. During the upgrade preparation they took some time to clean up reports on the system, review their over 300 dashboards and look for ways to reduce the complexity and number of customizations that had accumulated over the years.

They then did very thorough testing in a Pilot Kinetics environment. The testing used formal test plans with each department supporting the effort. They ran all reports and validated cross-functional capabilities of the new system using a copy of their production 10.x data. As they found issues, they created solutions and documented them.

Reports

They found that many of their reports didn’t fully convert over to the new Kinetics format. So, they reached out to get external SSRS support for conversion of these reports. They were able to resolve any conversion issues with their dashboard reports using internal resources. This typically involved compiling them in the new environment and then saving them in the new Kinetic format.

Menus

They also set up two separate menu structures, one with a Kinetic look and one with the Classic look. This allowed users who were hesitant to use the new Kinetic menus some time to adjust. They estimate that they will transition all users away from the Classic view over a nine-month period.

Epicor Kinetic Upgrade Process

The actual upgrade was done on the 3rd weekend of the month to avoid month-end closing activities. They pre-arranged for necessary on-call support and proceeded with the upgrade. It finished and they applied any solutions they had discovered during testing. Then they tested the overall functionality using some pre-determined tests. No glaring issues were found so they were able to release the environment to users.

They found that the minor kinks that remained took them about 30-45 days to resolve. They were pleased that there were no issues with user permissions after the upgrade or with printing and labels.

Lessons Learned

Here are a few Epicor Kinetic upgrade suggestions from the customer perspective:

Make sure you have the necessary licenses for your Pilot environment,
Don’t forget the testing of integrations that access or share data with Epicor,
Make sure that department heads sign off on the test plans, so they understand any gaps/concerns, and
Consider using the developed Test Plans to next create new End User Documentation.

In the end, they felt like the Epicor Kinetic upgrade was more of a UI and programming change than a lot of new features for their users.

One More Thing

In retrospect they had one other recommendation that I found valuable.

Since the new Kinetics Users Interface (UI) allows all Forms to be displayed in any popular browser, there is an important decision to make. The decision is whether to allow Users to access Epicor from personal devices (tablets, home computers, phones). Most companies will have security concerns that will affect this decision. In their case, they decided to not allow users to use personal devices for accessing the Epicor application.

Overall, this customer was pleased with the upgraded UI. They found that the new UI is cleaner and more modern. Plus, the users like the ability to sort, and rearrange columns on the screen. In version 2021.1 some of the features they needed still required them to use the Classic interface, but the new release 2021.2 seems to have resolved these problems.

For now, the largest issue has been helping users make the transition to the new User Interface. Some users felt it was a steep learning curve for them and others didn’t. It confirmed for them that users rarely like change particularly in the screens they use each day. That’s why it is important to give them time to experiment and view the new interface well before any upgrade.

The I.T. department didn’t see any speed issues with processing under the new release. And they are looking forward to not having to install/upgrade clients on user laptops/desktops as they fully use the new Kinetics interface.

I hope this quick look at one client’s experience will provide some background for your decision-making and spur some questions that your organization needs to explore. If you have any other questions, feel free to reach out to us.

Ask the Author about your Kinetic ERP Project

Rob McMillen is a Senior Project Manager with EstesGroup. He has worked in the manufacturing industry for over 30 years supporting multiple implementations of new ERP systems and leading projects. Because his mom was an English teacher, he grew up with a love of writing. Combined with his working experience, he has written articles for LinkedIn and User Groups, and has published numerous blog posts. He is also a co-author of a book on technology and working collaboratively. He currently lives in the DFW area. Ask Rob a question now by clicking here to visit our “Ask An Expert” page.

Do you need help with keeping your ERP project kinetic?

For 18 years, EstesGroup has helped manufacturers and distributors implement, optimize, and support their ERP systems. With veteran consultants highly skilled in both the old Epicor ERP versions and in the latest version, our upgrade service is all-inclusive. Our Cloud ERP experts can help you understand everything from data migration to upgrade tools. We support companies on every version of Epicor, so whether you want to maintain your old system or upgrade to the latest release, you’ll find everything you need to make your application studio shine.

Are software upgrades or technology upgrades in your future? Our IT experts are here to help with your business. Are you wondering how to upgrade to Epicor Kinetic? Rather than focusing on your Epicor software, or other ERP system, focus on the work you love. Let our Epicor Kinetic experts do the busy work, the maintenance, and the specialized tasks while you focus on manufacturing. Put your data in a private cloud hosted environment for ultimate backup & disaster recovery and cybersecurity.

What Cloud is Your Cloud Provider On?

by Brad Feakes | Oct 26, 2021 | Cloud, ERP, ERP Implementation, Hosting, Managed IT Services, Software

ERP Hosting is Better Than a Trip to the Ice Cream Parlor

The age of “mass customization” pervades many areas of our business and personal lives. The general populace has grown accustomed to being able to “dial in” solutions as needed, especially when it comes to products and services. Tailored solutions have become a competitive advantage, if not a necessity, these days, and every cloud provider claims variety and customizability, even in the ever-so rigid atmosphere of SaaS (Software as a Service). If you’re looking for a cloud provider for your ERP (enterprise resource planning) application, do you ask where your new infrastructure team will actually cloud your data?

Ice cream parlors have been playing the variety card for decades. I have always been a fan of a good sundae—a little of this, a sprinkle of that, one flavor, two… the combinations are endless, as are the effects on my palate. But no two ice cream parlors are created equal. Similarly, no two cloud providers are created equal. Sometimes it feels like there are no standards that govern what it exactly means to be “flexible” in the cloud or to have “scalability” in the cloud. Like with ice cream parlors, sometimes vanilla is nothing more than artificial vanilla flavoring. This means that as a cloud solutions buyer, you need to understand the unique build of your server infrastructure before you sign the cloud services agreement.

Cloud Provider for ERP Business Applications

In the cloud computing world, an ice cream sundae model for ERP application deployment is a natural progression of the mass customization movement. After all, flexibility and scalability are defining features of cloud computing.

Nevertheless, the big players in cloud solutions continue to pull us back into a world of vanilla (or vanilla flavoring). Tiered pricing models, service bundles, rigid step-progressions, and consumption models that do not adjust for seasonality leave many cloud customers feeling like they are trapped in an artificial vanilla apocalypse. Cloud computing is defined by its flexibility, but you wouldn’t know this when reading the fine print of your IT service contract.

That is to say, application deployment is not a one-size-fits-all proposition, even if your cloud provider is positioning it in that manner.

Some customers, with small footprints and standard business requirements, fit nicely within a software as a service (SaaS) framework when it comes to deploying ERP systems. However, many customers of greater size and complexity struggle with the limitations of SaaS. They want levels of access and control that are not normally afforded by SaaS deployment models. But exactly what a customer wants and needs differs from customer to customer. For suppliers offering very rigid solution sets, this can be a problem.

Some customers want a level of access and control that SaaS can’t support. They still want their cloud server stack micro-managed, but they don’t have the internal resources to perform the management. These customers lean toward managed ERP hosting, which falls more closely under a platform as a service (PaaS) model, where the solution provider manages the infrastructure and application platform layers, and the customer consumes the final output.

Other customers have the in-house staff and expertise to manage their own architecture. They want the solution provider to set up an ecosystem, but intend to take ownership and management of that ecosystem thereafter. These folks don’t need managed hosting, as they can perform any micro-management themselves. The solutions to satisfy these customers fall more under an infrastructure as a service (IaaS) model, where the solution provider provides the infrastructure, and the management of the application layer is the client’s responsibility.

But such simple distinctions between PaaS and IaaS seem too rigid for many customers. Many customers want something in between. They desire a combination of service, access, control, and responsibility. A sprinkle of this, a dash of that, a little smooth, a little crunchy.

As a customer, you need to make sure your cloud solution provider can lay out the various features and options that comprise their solution and help you work though a combination that fits your business. This might involve user provisioning, backup and disaster recovery, performance monitoring and tuning, or general application administration. Whatever the case, make sure your cloud solution provider is not trying to drown you in vanilla.

A Few More Clouds (and Cloud Providers) to Ponder

What types of cloud computing would you trust with your ERP software deployment? If you are considering managed hosting, are you looking for other managed services as well, such as cloud security services? Are you looking for a flexible data center for a hybrid cloud deployment, perhaps with pricing on a pay-as-you-go basis. Do you know your hardware and software needs? When you open a web browser on a corporate computer, do you know if any of your business data is kept in a public cloud?

Are you in need of a tailored cloud solution for your ERP application’s deployment? Chat with us now and get a free technology assessment!

Paying the Piper in Epicor E10, Kinetic & Prophet 21

by Brad Feakes | Oct 18, 2021 | Distribution, Epicor, Epicor 10, Epicor Kinetic, ERP, Prophet 21

Best Practices for Paying Supplier Invoices in Epicor ERP

There are many challenges when it comes to paying supplier invoices in Epicor E10, Epicor Kinetic (E11), or in Epicor Prophet 21. In simple terms, a company purchases goods from a supplier according to pre-established and carefully-specified terms. In most cases, a company needs to pay them within the specified terms, waiting as long as possible, as to keep the cash flow within the confines of the company’s banking system for as long as possible.

But the payment must not be so late as to incur the wrath of the supplier and avoid the inconveniences that credit hold will place on subsequent purchases. And the company may elect to take advantage of an early payment discount, if one exists.

Sounds simple enough. But a company also must ensure that invoices are accurate. The amount invoiced must correspond to the quantities that were actually delivered. Some many-to-one complexities muddle the water a bit, given that a supplier invoice may cover several purchase orders and that each PO could be dozens or even hundreds of lines in length.

Supplier Invoices Epicor Kinetic ERP Cloud

Automating the Three-Way Matching Process

At this point, we haven’t even begun to validate the amount that was on the original purchase order. Such is the magic of the three-way match: cross-referencing the information that was on the PO with the information on the receipt and matching both of these with the invoice from the supplier.

The matching process differs by company, as many companies have different rules and tolerances that govern the matching process. This can make the process laborious and time consuming for accounts payable staff, and it’s not uncommon for many accounting departments to spend inordinate amounts of time matching invoices and cutting checks for routine purchases.

Given that the three-way matching process is largely mechanical in nature, one would think that it could be automated. But what would it look like for a system to perform some of the heavy lifting, allowing your AP staff to focus on the critical few problems, without having to grind thought the invoices that went through without a hitch?

Firstly, the system would need to read the invoice. It would need to read and digitize supplier invoices, whether they’re sent as PDFs Word documents, or in some other format.
Secondly, it would need to validate the invoice. It would need to review the past POs and match the invoice lines with the corresponding PO lines, whether they come from multiple Purchase Orders or a single PO.
Thirdly, they’d need to perform the three-way match. Using the rules that your company has configured, the system would need to compare line items from the purchase order, the invoice, and the actual receipt of goods.
Finally, the system would need to generate payment vouchers with the click of a button.

The benefits of such a system should be self-evident. Automation works to secure your supplier relationship, while minimizing invested time and effort. Moreover, such a system would be the kind of repetitive and rigorous data-driven analytical work that computers are made to do:

Processing matched invoices
Kicking out exceptions

Automation allows skilled staff to focus on the real work, not the grunt work.

Are you in search of such a solution? Our supply chain automation partner SourceDay will be presenting a webinar entitled “3-Way Matching Success Through AP Automation” with Epicor ERP software solutions expert Jim Frye.

The webinar will focus on the final stage of the purchase order process: paying supplier invoices. Anyone who’s navigated the perils of accounts payables in Epicor knows the burden of matching purchase orders and invoices. There has to be a better way!

Join Epicor ERP expert Jim Frye to learn how SourceDay helps Epicor customers reduce the time and effort it takes to pay supplier invoices, resulting in early payment discounts, efficiency gains, and hard cost savings. The webinar will cover the following:

The challenges of paying supplier invoices in Epicor
The measurable benefits of faster invoice payment
How to increase operational efficiency and automation

Learn more about Epicor software by attending an EstesGroup Summit! Whether you’re a small business or a global manufacturer or distributor, our world-class enterprise resource planning (ERP) consultants can help you with everything from raw materials management to ERP cloud migration. Our Epicor consulting team can help you move from the paper based systems of the past to the cloud based applications of the future.

BRAD FEAKES

SVP or Professional Services

EstesGroup

TALK TO BRAD

JIM FRYE

Enterprise Sales Director & In-House Epicor ERP Expert

SourceDay

TALK TO JIM

PHILLIP PAVELKA

Solutions Engineer

SourceDay

TALK TO PHILLIP

Scaling Up & Scaling Out in a P21 Ecosystem

by Brad Feakes | Oct 11, 2021 | Cloud, Epicor, ERP, Hosting, Prophet 21

P21 System Performance in Accordance

When deploying any enterprise-level application such as Epicor’s Prophet 21 ERP, system performance is an extremely important consideration, one that can have significant impact on the successful use of the application. Memory allocation, transaction logging, network connections and a litany of other factors can affect the user community’s experience of the application. Failures in any one of these areas can bring an application to a grinding halt. This is certainly the case in a P21 environment.

As such, the work of a P21 administrator is critical in the successful deployment and maintenance of the Prophet 21 ecosystem.

While the successful administration of a P21 environment will differ on several factors, such as the version installed, the presence of a middleware server, the use of terminal services, and the use of the legacy desktop application, the actions taken to attain, maintain, and sustain a P21 ecosystem can be summarized by the two following principles:

Scaling Up: Stacking up resources onto a single existing server, user terminal, network, or device to allow it to perform better and bear additional load.
Scaling Out: Branching out by breaking out additional servers, terminals, network connections or devices to improve the capacity and capability of the overall P21 infrastructure.

Scaling up in a Prophet 21 Ecosystem

Scaling up involves the addition of resources, most often to a server, to address issues with usage and performance. In many cases, the performance of a single server, whether it is an application server, a database server or a user terminal, can be improved by identifying the problem in question and judiciously allocating some additional resources, such as RAM, CPU, or storage.

Let’s use the Prophet 21 desktop application as an example. The architecture of the legacy desktop application was such that a single desktop client generally consumed one entire CPU when in use. This creates a challenge for terminal services, given that two users logged into the same terminal server cannot share the same CPU, as is the case with other applications.

To address this, system administrators need to “scale up” and add CPUs to the terminal server, to allow multiple users to work from it in parallel. This is of course easier to do when the computer is virtualized, so admins will want to consider this should they have the need to build out a remote desktop for their user community. Depending on the number of users in your company, such an approach to your P21 environment may be satisfactory.

With the shift from the legacy P21 desktop application to the P21 middleware server, the concern with scale similarly shifts. Scaling up under the modern architecture now involves the resources allocated to a given middleware server to allow it to handle heavier loads. Even here, it is not uncommon that companies encounter scaling issues with the P21 middleware server, as the company grows. In many cases, the answer is not to scale up, but to scale out.

Scaling out in a Prophet 21 Ecosystem

Using the example of the Prophet 21 desktop application, a company can scale up a single remote desktop so high before the additional building blocks no longer elevate its cause. In the case of a remote desktop, a single terminal server can support approximately 12 CPUs to support roughly 15 users working in parallel—any further and the platform begins to bend under the weight of its own design.

In this case, it is preferable to spin up a separate P21 terminal server to support additional user requirements, and to integrate the multiple servers with a broker to create a server farm.

A similar but updated concern relates to Epicor’s middleware application server layer, and the number of users it can support. As with the development of a Prophet 21 server farm for remote desktops, the need might arise to create a load-balanced farm of Prophet 21 middleware servers, in order to meet user needs.

The shift from a 2-tiered architecture, in which the fat client speaks directly to the database to a 3-tiered architecture, where the thin client speaks to the middleware server naturally shifts much of the heavy lifting from the traditional desktop client to the P21 middleware server itself.

Again, the specifications are ambiguous, but we’ve found that often a single Prophet 21 middleware server can be scaled up such that it will support roughly 50 concurrent users before the server can no longer perform any additional heavy lifting. In these cases, it is preferable to build out a new Prophet 21 middleware server in a load-balanced environment.

P21 Economies of Scale

In practice, helping users often involves some combination of scaling up and scaling out. It begins with an understanding of the scope and limitations of the Prophet 21 architecture and an understanding of the size of the user community and their needs. From there, the combinations and permutations become an intriguing and multifaceted challenge for the P21 administrator to circumnavigate.

LEARN WHAT TO DO WHEN YOUR VENDOR OFFERS SAAS ERP

Employee Retention: The Attrition Mission

by Rob McMillen | Sep 29, 2021 | Business Consulting, Business Direction, Distribution, ERP, ERP Consulting, Manufacturing Innovation

There’s a significant shift occurring in the job market. And our manufacturing and distribution industries will not escape the impact.

For the past few years, it has been an employer’s market and many workers were unable to find jobs. But that has changed in the last 18 months and there are growing concerns about employee retention.

In the past 5 months, over 15 million US workers have quit their jobs.

Plus, in recent surveys, 40% of employees are considering leaving their jobs in the next 3-6 months. Rather than cooling down, there are projections that more attrition is coming.

There are many reasons this could be occurring. And many strategies to consider. What’s clear is that if your organization is not understanding the root issues, it will increase your employee attrition rate rather than reduce it.

Before we can answer what it takes to retain your best employees, it’s important to understand the dynamics of the situation.

Employee Attrition vs Attraction Recruit and Retain Gears

Differing Perspectives

A recent article, by McKinsey and Company, explored this topic. It noted several disconnects between organizations and employees. These disconnects are likely contributing to employee dissatisfaction.

The article highlights that organizations often focus on increasing compensation and financial perks as a first step to stop employee attrition.

But is that scratching the itch that employees are feeling? What if there is “more at work” (pun intended) than making more money? And if compensation is not the driving issue, how should your organization respond?

Let’s start with the emotional toll of the last 18 months during the pandemic. Behind it we can learn more.

Most employees have experienced rapid change. Illness, online meetings, hospitalizations, new work procedures, vaccines, deaths, politics, changing recommendations, school closings, and daily unknowns have been their daily diet. At work their relationships were frayed by new routines and rules. Constant fear contributed to few social interactions, no get-togethers and limited travel. And with it the use of masks limited our ability to communicate visually.

Employee Expectations

The result has been a change in employee’s work needs. Studies are showing that employees are looking for these benefits in their work:

A sense of value from being in the organization
The potential for advancement
Having caring and trusting teammates
Options for a more flexible work schedule
Feeling more valued by their managers
A sense of belonging

Shared Expectations

Both employers and employees do agree on some things. They both believe that these issues need to be addressed:

Work-life balance
Unmanageable workloads
Feeling disengaged at work
Help with caring for families

Organizational Focus

This leaves us to consider whether employers are right in focusing primarily on these issues which may not be valued by employees:

Creating more opportunities
Accommodating more remote work
Improving the health of employees
Discouraging employees from looking for new jobs
Taking steps to limiting poaching by competitors

Suggested Focus

The McKinsey and Company article recommends that organizations start by listening to employees and including them in discussions. This signals that employees are valued.

That doesn’t happen when management decisions are handed down without employee input. Such decisions are often seen as indicators that management is uncaring and disconnected from employees. And who wants to work in a place like this?

There are positive things that can change the tone in organizations. And they involve asking hard questions about your organization and then moving to address any problems.

Is our organization sheltering toxic leaders who do not value, inspire or motivate their employees?
Are the right people in the right roles in both our management and non-management ranks?
How can we make our culture more collaborative and open to conversations?
How do we replace transactional approaches with relational approaches that stress collaboration and value?
Are our company benefits aligned with employee priorities that are top-of-mind?
What career paths and development opportunities do our employees really have?
How can we build community at work by encouraging better relationships?

From Ideas to Action

Each of these questions focuses on increasing the collaborated relationship across the organization. They send the message that the organization is empowered by trusted relationships and a shared future.

So, what can we say at this point?

First, it is clear is that the employee/employer relationship has changed over the past 18 months. Employees are wanting a more relational approach to their work, more connectivity and more value from their workplace.

Secondly, there are real opportunities for your organization. Those manufacturing and distribution organizations which lead with dialogue and listening will find ways to benefit from the changes.

They will retain top performers because they communicate value, a shared future and positive opportunities.

Now, what can you do to get this moving with your team?