Turnover happens. Employees retire, take new jobs, leave for personal reasons or sometimes, unfortunately, are asked to move on.
At low levels, turnover can be healthy. New employees bring innovative ideas and fight off complacency. However, excessively high turnover can undermine the stability and profitability of any organization.
What should you do if you suspect turnover is too high?
When is the last time your company evaluated your hiring process? Although some managers swear by gut-instinct and informal interviews, studies show these methods usually lead to poor hires. (ERE, 2018) Instead, consider the benefits of group interviewing, structured interviews, cognitive ability assessments, work-sample tests, and experiential or hands-on interviews. Smart hiring begins with well-developed, thoroughly implemented and time-tested procedures. Track your success rates. What methods resulted in identifying top employees? What methods didn’t? This may be time-consuming and expensive, but the cost of bad hiring is far higher.
Certainly, low pay can lead to turnover. However, some companies have more resources than others. These organizations can afford to give top salaries and offer seemingly unlimited perks. How can you compete? Certainly, people need to make enough money to feel valued and to support themselves, yet for most employees, jobs aren’t all about money. As bestselling author Daniel Pink writes “pay people fairly, pay people well; indeed, pay people enough to take the issue of money off the table.” And, if your organization can’t compete with your wealthier competitor’s paychecks, consider offering benefits such as flex hours and remote work that, for some, can be equally valuable.
People want their work to matter. Making a difference can be a more powerful motivator than money or personal career achievements. Employees want to work for and stay with companies that are innovating, changing the future and making a positive impact. This may seem easier for some industries, such as health care or education, than others. Nevertheless, the world needs businesses of all sorts and all sizes. Show your employees how their efforts matter. Connect them to the people they are helping with real life stories and testimonials. Let them see their job as more than just a job.
Follow the Golden Rule
If you treat your employees the way you want to be treated, chances are they will be more dedicated and loyal. Even though this seems obvious, many managers overlook the power of simple and straightforward rules. Let people know what’s expected. Don’t make unreasonable demands. Staff adequately. Be polite. Respect your workers. Create a pleasant work environment. Allow for honest mistakes. Communicate. Involve your team in important decisions. Encourage collaboration. Provide opportunities for learning and advancement. Celebrate successes. Say thank you.
Doesn’t this sound like a place you would like to work?
Is Your Company Struggling to Find the Right People?
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