Revolving door leaves a bad impression on customers
High turnover sends a bad message to customers. There are few things more frustrating than discovering a key contact is no longer with the organization.
The trust, time and money customers spent sharing business strategies and plans evaporate as that person heads out the door. It puts the company at a disadvantage and leaves a bad taste in the customer’s mouth.
If this occurs on an ongoing basis, the company’s clients and partners are left with an impression that the organization is unstable and badly planned and the top leaders are not focusing on the critical business issue — the employees and the people that make a business work. Interest in pursuing further investments or partnerships will evaporate.
High turnover is becoming a problem for many companies who are unable to keep their best employees. Competition for star players is tough and it is imperative for companies to realize the value of every employee to the bottom line.
HR managers estimate it can take anywhere between 150 to 250 per cent of a departing employee’s salary to replace her when costs such as recruitment, training, lost productivity and lost sales are taken into account.
Time, stress and morale are the biggest unforeseen costs to an organization when losing employees. Factor in the impact on present employees such as increased workloads, backlogs and slow productivity and the costs are staggering.
Due to the significant downsizings and employee reductions, workloads are increasing and management support is decreasing which leaves the employee out of balance and balance is key for an employee. If there is a misalignment between what an employee values, such as flexible work hours and empowerment, then the employee will not feel respected and begin looking for other avenues.
Add to this ever-stressed bosses, lack of incentives and fear of reductions and managers aren’t likely able to get to the root of the causes of employee turnover.
Companies are reacting by adopting complex retention strategies that are broad and tailored to the workplace. These programs are not necessarily about increased spending and often stretch to combine personal and professional elements with the goal of keeping employees as long as possible. Retention starts early. Hiring people should be done with the intention of keeping them for the long haul. Profiling them against the company’s top performers ensures a proper fit into the company and increases the likelihood of longevity.
Ongoing training helps new employees adjust to the company over a comfortable timeframe while performance reviews and employee surveys help them understand what they do well or should improve, increasing communication, something that is critical for a sense of inclusion. Some companies take these reviews one step further and help employees create a career plan which encourages them to stay by involving the company in the employee’s future direction.
But this is no longer a society where a job lasts a lifetime and it is nearly impossible to keep a good employee on the payroll forever. Yet a manager can still learn from an exiting employee through interviews which address issues relating to the individual’s role and reasons for leaving. The results of this can be used to reconsider the job description and further refine the position profile. They also allow the employer to gauge the present atmosphere within the company and make changes where necessary to avoid upcoming turnover issues.
The aim of retention strategies is to minimize the loss.
For companies who put retention first and have low turnover, the company is creating the impression that the top leaders are in balance and in tune with the organization’s needs that people matter.
Jon Blanthorn is a corporate writer with Drake International, a global provider of business consulting and implementation solutions. Tracy Griffin is a strategic HR consultant with Drake International. For more information visit www.drakeintl.com or phone (800) GO-DRAKE.
The trust, time and money customers spent sharing business strategies and plans evaporate as that person heads out the door. It puts the company at a disadvantage and leaves a bad taste in the customer’s mouth.
If this occurs on an ongoing basis, the company’s clients and partners are left with an impression that the organization is unstable and badly planned and the top leaders are not focusing on the critical business issue — the employees and the people that make a business work. Interest in pursuing further investments or partnerships will evaporate.
High turnover is becoming a problem for many companies who are unable to keep their best employees. Competition for star players is tough and it is imperative for companies to realize the value of every employee to the bottom line.
HR managers estimate it can take anywhere between 150 to 250 per cent of a departing employee’s salary to replace her when costs such as recruitment, training, lost productivity and lost sales are taken into account.
Time, stress and morale are the biggest unforeseen costs to an organization when losing employees. Factor in the impact on present employees such as increased workloads, backlogs and slow productivity and the costs are staggering.
Due to the significant downsizings and employee reductions, workloads are increasing and management support is decreasing which leaves the employee out of balance and balance is key for an employee. If there is a misalignment between what an employee values, such as flexible work hours and empowerment, then the employee will not feel respected and begin looking for other avenues.
Add to this ever-stressed bosses, lack of incentives and fear of reductions and managers aren’t likely able to get to the root of the causes of employee turnover.
Companies are reacting by adopting complex retention strategies that are broad and tailored to the workplace. These programs are not necessarily about increased spending and often stretch to combine personal and professional elements with the goal of keeping employees as long as possible. Retention starts early. Hiring people should be done with the intention of keeping them for the long haul. Profiling them against the company’s top performers ensures a proper fit into the company and increases the likelihood of longevity.
Ongoing training helps new employees adjust to the company over a comfortable timeframe while performance reviews and employee surveys help them understand what they do well or should improve, increasing communication, something that is critical for a sense of inclusion. Some companies take these reviews one step further and help employees create a career plan which encourages them to stay by involving the company in the employee’s future direction.
But this is no longer a society where a job lasts a lifetime and it is nearly impossible to keep a good employee on the payroll forever. Yet a manager can still learn from an exiting employee through interviews which address issues relating to the individual’s role and reasons for leaving. The results of this can be used to reconsider the job description and further refine the position profile. They also allow the employer to gauge the present atmosphere within the company and make changes where necessary to avoid upcoming turnover issues.
The aim of retention strategies is to minimize the loss.
For companies who put retention first and have low turnover, the company is creating the impression that the top leaders are in balance and in tune with the organization’s needs that people matter.
Jon Blanthorn is a corporate writer with Drake International, a global provider of business consulting and implementation solutions. Tracy Griffin is a strategic HR consultant with Drake International. For more information visit www.drakeintl.com or phone (800) GO-DRAKE.
