Is your staff turnover ruining your business reputation?
Find yourself ploughing through staff faster than a hot knife through butter? Cant for the life of you figure out what is happening and how to keep those staff firmly in place at your business? Read on, business owners……
Any large amount of employee turnover can, simply put, ruin your business. The reason isnt the number of employees who leave, but the reasons and circumstances surrounding their hasty exit, that may leave your business on its last legs. Now, don’t get the wrong idea here, staff turnover is necessary for an organization to thrive and be successful, however, excessive turnover can and will disrupt the morale of your workplace and lead to a dissatisfied and unproductive workforce.
What are the reason behind your high staff turnover? Well, it might just be time to ask yourself some hard hitting, difficult questions. And be honest now, deception is only going to hurt yourself and your business.
1. Do you respect your employees? Lack of respect is commonly cited as a reason for staff resignations as is feeling expendable, not getting recognition and not being given autonomy.
2. Company culture. Their values don’t match the organisation or vice versa. What are your company values and how would you define your culture? If you don’t know, then how do you know if you are attracting and hiring people with the same values and goals?
3. Unreasonable Expectations. Exactly how high are your expectations for your staff? And do these expectations match up with remunerations? A commonly cited reason for resignation is feeling undervalued. Analyse your current pay structure to ensure it is competitive for your industry and and specific skill requirements.
4. Communication. How do your communication skills in relation to your employees hold up? Don’t hold back, share it all with them, the good the bad and the ugly and allow your employees to have some input. Alienating your employees with closed door management and ignoring employee input will, inevitably lead to high staff turnover.
High levels of staff turnover can and will affect the value (and reputation) of your business in many different ways. One of the most important, is the cost it requires to employ a new staff member to replace your departing staff member. On average, studies show that this will cost your business approximately 30-50% of your departing staff’s annual salary. That, people, is a large chunk of change that could be staying firmly in your business banking account! Your goal, as the business owner, is to retain your valued performers while replacing poor ones.
Your company’s reputation is at risk! Your clients want consistency when dealing with your company. They don’t want to have to introduce themselves to new employees every week and they don’t want to have to constantly explain their requirements to new, untested staff members. Building a positive relationship with your clients is your employee’s most important job and that is made very difficult if you have a new employee in place every few months.
Don’t let a high staff turnover, be the reason your business folds! Evaluate your work place and put systems in place to rectify culture, values, expectation and communication issues. You will find your business, employees and yourself benefitting in no time!