Many of you are familiar with the following two quotes…”The smallest deed, is greater than the best intention” John Burroughs. The other is, “Knowledge is Power” Francis Bacon. This information begs the question, what does this have to do with employee turnover? First, let’s explore employee turnover.
Employee turnover negatively influences three areas of your business, 1) other employees, 2) the bottom line and 3) productivity. If your managers and HR personnel conduct exit interviews, and they should, you may discover that employees leave for the following reasons:
- Employees are being mismanaged.
- They feel unappreciated.
- Lack of resources and support
- Lack of opportunity for advancement
- Inadequate compensation
Make no mistake, managing people is not easy. Therefore it essential that leaders understand that running a company is demanding. Systems must be in place that assist employees in being productive and clearly communicating expectations is critical. Moreover, it is essential to understand the benefits retention brings to an organization. Reduced cost is obvious as employee turnover is expensive. The cost of hiring and training new employees can put deep cuts in cash flow and profits. If you need a reminder of turnover costs, check out this resource http://goo.gl/VSWtYX
However, there are other reasons why retention can be an attractive tool in preserving the bottom line.
- Retention helps make your organization more attractive to potential talent
- Productivity increases as new hires cause disruption in work flow
- Retaining your top performers adds stability during difficult times
- Confidential information can often be taken to your competitor when employees exit
The informed CEO understands methods that help retain top talent.
- Training and mentoring programs
- Open door policies
- Solid and consistent reward and incentive systems
- Eliminate favoritism.
- Involve employees in developing policies and procedures.
- Provide opportunities for growth and implement succession planning.
- Ensure that pay scales are competitive.
- Foster open communication, and when there is conflict encourage the employees to meet together with a manager.
- Have one-on-one meetings with employees.
Retaining exceptional employees is the only way a business can capitalize on profits, productivity and performance. Without capable people, a business will not exist. Therefore, employee development is the number one job of the informed CEO.