Employee Turnover – Costing you more than you know!
Employee Turnover – Costing you more than you know!
If you are having constant turnover in your company, it is costing you thousands of dollars a year. The following Top Ten Tips are to help with this problem, hoping this will help you to save a lot of money each year, and again add some serious dollars to your bottom line.
In this list, you will see that most of these tips are addressed to the owner, boss, or supervisor, in other words, management. If you can take these tips to heart, it may be that you turn around your company’s finances and state of morale, if needed.
We realize that not all companies have issues with constant or high turnover in their businesses, but sometimes we might want to look at our business to give it a tweak or two, in order to make it even better than it already is. So if you are one of the owners that have all these tips covered and have a good solid work force in your company, then we say “Kudos!” to you, and we know that we can congratulate you on a job well done.
1. Overworked/Extended Hours: There is not enough help to do the job and so one person does the work of several, causing for longer weekday hours and working on the weekend. Usually the thing that makes this the worst is when there is no appreciation for this extra effort, no extra pay, and if the person is on salary, it is expected they just work many extra hours to get the job done, basically for free. You are burning them out by overworking and underpaying them.
2. Cutting back on administrative help: This is very inefficient and again creates disgruntled professional level employees, because they now have to take the time to do the “no brainer” work of the administrative help, as well as get all their work done. It does not make sense to disgruntle the professional level employee (harder and more costly to replace) and pay the professional level’s rates to do the ‘no brainer’ work that is still necessary.
3. Nickel and Diming: Sometimes employers will nickel and dime a valuable employee, and that employee will leave because they can get paid much more somewhere else, and experience the appreciation of that work, thru the appropriate pay. If this professional level employee leaves for better pay, because the employer wanted to save .50 per hour, then the employer will end up spending thousands of dollars to go thru the hiring and training process of this level of employee. Sometimes the owner can think he/she is saving a dime, when in fact he/she will be spending many dollars instead.
4. Micromanaging or no managing: Either one of these can cause serious problems in your rank and file in your company. If you give no direction/management at all, your troops can feel like you don’t care, and they will just not care as well, and move on to where they feel there is someone more responsible at the top. The exact opposite is just as bad, the micromanager. If you do not let your troops take some ownership in what they are doing, then they will move on to where they feel like what they contribute is valued and they have the freedom to do what they need to within their job parameters. Find the balance, and you will have a very stable work force.
5. Disorganization/No Direction: When management has no direction or organization, people are being shuffled all around, no one knows what to do, and they just feel lost, this is a serious problem and many employees leave for this reason. Not only do you want to have direction, goals and vision for your company for the financial health of the company, but also for your employees. This will make them feel like they are involved with a company that has a future and is growing/moving.
6. Speaking out of both sides of your mouth: Sometimes management will create a very competitive environment, and in the same breath, expect the employees to maintain an atmosphere of teamwork. As the owner, you need to give direction and keep it focused and constant. Be careful not to create this dichotomy of environments and expect your employees to be happy or even really know what to do. As the owner, it is your job to make sure that your troops have direction and are not fighting amongst themselves, because of a dichotomy that you created.
7. Mid Management Power tripping: If you have mid-management in your company, in order to prevent ‘power tripping’ mid managers, you as the owner should be managing them, and encouraging a team work approach, so that all are appreciated and valued, want to work together, instead of competing. You may loose many rank and file employees under these circumstances, because they will feel very disgruntled, and leave.
8. Loyalty: The concept of loyalty is really a thing of the past, so be sure when you hire someone, that you pay them what they are worth, because if you don’t, they will move on. Loyalty is created by paying what is an appropriate amount for the level of employee you have. If you are not sure, go online and see what the rates are for what the employee is doing to make sure that you are being reasonable.
9. Favoritism: Sometimes unknowingly, we can promote a person of less qualifications or give perks to someone and not another. Just know that these kinds of things are always noticed, and in order to maintain your staff, you must show fairness, impartiality at all times in order to prevent turnover for this reason.
10. Not just business: Sometimes we think in our businesses that “this is just business,” and so not considering the human element in your work environment can be a big mistake and also cause high turnover. For example, if you do not take the time to clarify goals, give direction, you could reject some work someone did with their understanding of what you have NOT told them, and then when you reject it and say it is all wrong, they will feel very disgruntled and leave, if not right then, then later, especially if it continues and is the standard operating procedure. So be careful to always communicate clearly what the goals are, the project is, or whatever your expectations are as management, so that when the employee comes back to you with the work, it is what you expected, they are praised, happy and you get exactly what you need to continue.
Now not every ‘quit’ is preventable, but if you, as the owner/manager, will pay attention to these tips, you can prevent A LOT of the quitting and make your company stronger, happier and more profitable with a stable work force, keeping all the “turnover costs” in your pocket. There have been surveys done and one of the most common reasons for employees quitting is because of their bosses….they are not quitting the company or their job, they are quitting their bosses. Or in other words, it is not the company or their actual work that makes them leave, but their bosses approach to things. The above 10 items are the top 10 reasons people quit their bosses.
So again, if you are one of the owners out there that has all this covered, we “Tip” our hat to you, but if we can help you in anyway to keep some of those invisible costs down, that is what we are here to do.
Employee Turnover Costing you more than you know - To learn more about this author, visit Jacquie M. Adkins's Website.
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There are costs in business that can hit us hard without us really realizing it. Because they are not hard costs that we see as a category in our expense column on our financials, we don’t sometimes realize these tremendous costs. I would call these “invisible costs.” One of the biggest culprits of this is high employee turnover. When you loose an employee, then have to spend the costs for hiring and training a new employee, you can end up with some serious costs that can really add up, especially if you have constant turnover. These costs include everything from help wanted ads, time to review applications/resumes, employment agencies, temp services until you get a replacement person, doing interviews with usually more than one of your current staff involved, making the offer, training them, getting them set up with equipment to perform their job, not to mention the serious disruption that can happen, which can be the biggest “invisible cost” of all.
If you are having constant turnover in your company, it is costing you thousands of dollars a year. The following Top Ten Tips are to help with this problem, hoping this will help you to save a lot of money each year, and again add some serious dollars to your bottom line.
In this list, you will see that most of these tips are addressed to the owner, boss, or supervisor, in other words, management. If you can take these tips to heart, it may be that you turn around your company’s finances and state of morale, if needed.
We realize that not all companies have issues with constant or high turnover in their businesses, but sometimes we might want to look at our business to give it a tweak or two, in order to make it even better than it already is. So if you are one of the owners that have all these tips covered and have a good solid work force in your company, then we say “Kudos!” to you, and we know that we can congratulate you on a job well done.
1. Overworked/Extended Hours: There is not enough help to do the job and so one person does the work of several, causing for longer weekday hours and working on the weekend. Usually the thing that makes this the worst is when there is no appreciation for this extra effort, no extra pay, and if the person is on salary, it is expected they just work many extra hours to get the job done, basically for free. You are burning them out by overworking and underpaying them.
2. Cutting back on administrative help: This is very inefficient and again creates disgruntled professional level employees, because they now have to take the time to do the “no brainer” work of the administrative help, as well as get all their work done. It does not make sense to disgruntle the professional level employee (harder and more costly to replace) and pay the professional level’s rates to do the ‘no brainer’ work that is still necessary.
3. Nickel and Diming: Sometimes employers will nickel and dime a valuable employee, and that employee will leave because they can get paid much more somewhere else, and experience the appreciation of that work, thru the appropriate pay. If this professional level employee leaves for better pay, because the employer wanted to save .50 per hour, then the employer will end up spending thousands of dollars to go thru the hiring and training process of this level of employee. Sometimes the owner can think he/she is saving a dime, when in fact he/she will be spending many dollars instead.
4. Micromanaging or no managing: Either one of these can cause serious problems in your rank and file in your company. If you give no direction/management at all, your troops can feel like you don’t care, and they will just not care as well, and move on to where they feel there is someone more responsible at the top. The exact opposite is just as bad, the micromanager. If you do not let your troops take some ownership in what they are doing, then they will move on to where they feel like what they contribute is valued and they have the freedom to do what they need to within their job parameters. Find the balance, and you will have a very stable work force.
5. Disorganization/No Direction: When management has no direction or organization, people are being shuffled all around, no one knows what to do, and they just feel lost, this is a serious problem and many employees leave for this reason. Not only do you want to have direction, goals and vision for your company for the financial health of the company, but also for your employees. This will make them feel like they are involved with a company that has a future and is growing/moving.
6. Speaking out of both sides of your mouth: Sometimes management will create a very competitive environment, and in the same breath, expect the employees to maintain an atmosphere of teamwork. As the owner, you need to give direction and keep it focused and constant. Be careful not to create this dichotomy of environments and expect your employees to be happy or even really know what to do. As the owner, it is your job to make sure that your troops have direction and are not fighting amongst themselves, because of a dichotomy that you created.
7. Mid Management Power tripping: If you have mid-management in your company, in order to prevent ‘power tripping’ mid managers, you as the owner should be managing them, and encouraging a team work approach, so that all are appreciated and valued, want to work together, instead of competing. You may loose many rank and file employees under these circumstances, because they will feel very disgruntled, and leave.
8. Loyalty: The concept of loyalty is really a thing of the past, so be sure when you hire someone, that you pay them what they are worth, because if you don’t, they will move on. Loyalty is created by paying what is an appropriate amount for the level of employee you have. If you are not sure, go online and see what the rates are for what the employee is doing to make sure that you are being reasonable.
9. Favoritism: Sometimes unknowingly, we can promote a person of less qualifications or give perks to someone and not another. Just know that these kinds of things are always noticed, and in order to maintain your staff, you must show fairness, impartiality at all times in order to prevent turnover for this reason.
10. Not just business: Sometimes we think in our businesses that “this is just business,” and so not considering the human element in your work environment can be a big mistake and also cause high turnover. For example, if you do not take the time to clarify goals, give direction, you could reject some work someone did with their understanding of what you have NOT told them, and then when you reject it and say it is all wrong, they will feel very disgruntled and leave, if not right then, then later, especially if it continues and is the standard operating procedure. So be careful to always communicate clearly what the goals are, the project is, or whatever your expectations are as management, so that when the employee comes back to you with the work, it is what you expected, they are praised, happy and you get exactly what you need to continue.
Now not every ‘quit’ is preventable, but if you, as the owner/manager, will pay attention to these tips, you can prevent A LOT of the quitting and make your company stronger, happier and more profitable with a stable work force, keeping all the “turnover costs” in your pocket. There have been surveys done and one of the most common reasons for employees quitting is because of their bosses….they are not quitting the company or their job, they are quitting their bosses. Or in other words, it is not the company or their actual work that makes them leave, but their bosses approach to things. The above 10 items are the top 10 reasons people quit their bosses.
So again, if you are one of the owners out there that has all this covered, we “Tip” our hat to you, but if we can help you in anyway to keep some of those invisible costs down, that is what we are here to do.
Employee Turnover Costing you more than you know - To learn more about this author, visit Jacquie M. Adkins's Website.
Like this article? Share it with your friends
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