After 20 years of covering 100 percent of all health care costs for his employees at Care Services Inc., Marc Wolf just couldn’t do it anymore. The recession hit a lot of people hard and the loss of free health care was going to be one of the bitter pills his employees would have to swallow.
Wolf, the diabetic supply company’s founder and CEO, and his wife, Cindy, the chief operating officer, took the decision hard and didn’t hide that emotion from their 29 employees. Such depth of feeling can help buy a little understanding and empathy from your people.
“It’s all about being honest and upfront,” Wolf says of the tough call he and his wife had to make in leading the $9 million company.
“It’s just laying it all on the line. It’s speaking from your heart and showing your true angst that you’re asking them to do it. It’s also being very honest with them that you’re doing it not only to maintain the profitability of the company but the current status of everyone being employed there. You’re not using it as a threat.
“It’s just truly an honest statement that we’re doing this so the company stays profitable, so that no one would lose their job and so we can continue to maintain the health care and benefits.”
When tough times hit a business, or even when they are just lurking nearby, you need to be cognizant of how much your employees look to you as a barometer for how to view the bad news.
“The leader at the top sets the tone for the whole company, whether it’s on a daily basis, a weekly basis or whenever,” Wolf says. “If you’re aware of the same information that they know about or you just find out about it, the important thing is that you’re showing them the strength and courage. ‘Don’t worry, we’re going to get through this thing. I have confidence in what we do and how we do it and we’re going to succeed.’
“You may feel inside that you have your own concerns about what you’re saying, but on the outside, you’re their leader and hopefully, they can say, ‘Marc believes we’re going to be OK and I trust him.’”
One way to further the support of your people is to engage them in coming up with ways to help the business control costs or deal with the challenges in a personal way.
“It goes back to continually having an open dialogue with them,” Wolf says. “It’s letting them know exactly what’s happening in the business and asking them to be involved in the process. As an employee, they want and need the leaders of their company and industry to have the confidence that things are going to be OK. It may look tough right now, but we’re going to make it happen.”
It’s not always what you say, though, that can create stress. If things change in the office, like you start holding more meetings or change some other procedure, be open about this with your people.
“It’s important that everyone gets the same message so that there isn’t confusion because people are people and rumors spread and things get spun out of control,” Wolf says. “‘This is why we’re having more meetings than we were before,’ or, ‘This is why you’re seeing less of a certain situation happening.’ It’s all about being open with them. They are all adults. They may not like it, but it’s better that they understand it than just be kept in the dark and always be thinking the worst.”
This consistency of communication will help you when you do have to make a painful announcement.
“If, every day, you’re a straight shooter and you’re open with them and being honest with them with the good news, it’s a lot easier when you have to deliver the bad news,” Wolf says. “Hopefully, they’ll believe you in both instances.”
How to reach: Care Services Inc., (440) 954-7709 or www.diabeticcareservices.com
Watch your costs
Cindy Wolf knows many of her employees have cut back on their personal expenses in light of the recent tough economy. So the chief operating officer at Care Services Inc. felt like the company she runs with her husband, Marc, could stand for a little trimming, too.
Wolf says she and Marc, the company’s founder and CEO, are proud of the fact that they haven’t had to cut any jobs. But they have sought to reduce costs around the office that save money without dramatically affecting service.
“Instead of the convenience of having OfficeMax and Staples deliver office products, now I go to Costco or Wal-Mart,” Cindy Wolf says. “It’s a lot less convenient, but we’re saving some money.”
Marc Wolf says you have to always have your eye on your expenses.
“You’re always aware of the bottom line and your expenses,” he says. “You always have to be focused on that and be aware of your expenditures and where you can control them. In a recession, you need to evaluate and re-evaluate all of your costs and expenses and maybe look at them harder than ever and say, ‘Well, there are certain costs we can control and there are certain costs we can’t.’”
It’s those costs that you can control where you can look to make a difference.
“I’m looking at any changes that are occurring,” Wolf says. “I’m looking at it on a quarter-by-quarter basis. Are my operating expenses being maintained? Are they the same? Are they increasing but my business is decreasing? It’s really going line by line and looking at every one of my expenses from an administrative and operating standpoint What looks right and what isn’t? Even if business is getting better, how do I maintain that same level of expense even though we’re doing more business?”