Taming employee turnover
How much do you spend on recruiting and replacing an employee? It is estimated that most organizations spend between $4,000 and $40,000 per employee. With the upper end of that range equaling an entire year’s salary in some parts of the United States, managers are understandably reluctant to simply accept turnover as an everyday cost of doing business.
Of course, turnover is inevitable. Employees burn out, take other job offers, and move back home to be near their families. The reason behind an employee’s departure may not be your company’s fault (indeed, research in recent years reveals a three percent drop in involuntary employee turnover i.e., being fired), but rest assured the cost of replacing said employee will land squarely on your company’s doorstep, affecting your productivity, your bottom line, perhaps even your organizational morale (a separate, hidden cost of turnover). Organizations that are taking retention and investment in their people seriously now are the ones that will most likely thrive in today’s economy.
More so than ever before, employee motivation and retention are a real challenge. They are, however, issues that can be controlled. The answer is simple: hire the right people for the job, and be creative in the way you manage, train and reward them.
Here are a few strategies to help in your quest of recruiting and retaining the best and brightest stars.
1. Get it right the first time
Hire the right person for the right job. Use tools to aid in identifying the candidates who possess the suitable characteristics desired for that job. “Identifying accurate job characteristics may seem like a daunting task, but it is actually quite straight-forward when you have the right tools at your disposal,” explains Bud Haney, founder of Profiles International. When looking at a person’s eligibility for a job, it is crucial that you see them as an integral part of your company’s future success, not just as a warm body filling a role.
2. Understand that money is not everything
Playwright Eugene O’Neill once wrote that “money isn’t everything, not always.” As important as money is in our daily lives – and as difficult as it has been lately to earn it, and to keep what you have earned – money is still just one component of employment value. Businesses must ensure that they offer a great workplace, life balance, career development, quality leadership and work flexibility. Additional benefits – ranging from great financial packages to employee appreciation to recognition programs – add to employment value. Remember, added benefits do not have to be expensive.
3. Create a caring work environment
If money isn’t enough to keep quality employees around, it certainly won’t be enough to motivate high productivity and innovation. A genuine, warm and caring workplace has a high impact on staff personally and on the quality of their work. The philosophy here is simple: give and you will get back tenfold. Treating employees and applicants well signals to individuals that an organization realizes the importance of their investment, and that people are more than just “human capital.”
4. Promote from within
Give your people an opportunity to advance from within. This perpetuates company culture and creates drive to further careers. “Knowing your employees’ strengths, weaknesses and what makes them productive gives employers a distinct advantage in retaining and developing their workers,” says Kelly Painter, chief sales officer of Profiles International. Treat your people with dignity and respect, nurture those who want to move ahead, and create an environment in which they can excel.
5. Build your reputation
What is the “word on the street” in regard to your business? Is your business an exciting startup with limitless potential? A red-tape quagmire where it’s nearly impossible to get work done because the corporate structure is unclear? Is your product or service on the cutting edge, does it excite applicants and company veterans alike? A successful brand and image in the workplace is key to attracting and retaining good workers. Everyone wants to believe in and feel a part of something new, exciting or relevant. Employees are no different; they gravitate toward organizations with sterling products, cultures or reputations.
Profiles International offers assessment solutions to help organizations select the right people and develop them to their full potential. Visit www.profilesinternational.com to learn more.
Originally published in the January/February 2014 issue of Pro Contractor Rentals. Copyright 2014 Direct Business Media.
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