Turning The Tide On High Turnover Rates

Turning The Tide On High Turnover Rates

25May, 2016

Turning The Tide On High Turnover Rates

If you are churning through workers almost as quickly as your company needs to produce widgets, you have to face some stark realizations. It is costing you dearly. No fear, answering some questions will lead you to better solutions that may put the brakes on this situation to reverse the tide on high turnover rates of employees.

Question #1: Who’s Doing The Hiring Around Here?

Raise your hand proudly if your company uses a third party resume scouring service that filters through candidates and then tosses them toward the  manager that has the pain point (is requesting new employees).

The issue may be from a communication breakdown; that is, they have no idea how widgets are made and really have no idea what a widget manager needs in a widget-making employee. It is par for the course with third-party recruiters, so open your mouth and let them know what you need in an applicant.

Question #2: Are You Training Your Employees?

No one knows your business like you do. Even if you find someone who knows how to make widgets, chances are that there’s something different that makes your widgets have their own selling points. Training your employees means that you get to show them your company culture, your way of doing business, and how you make widgets. Training is a recipe for success, and it builds teams within the company because “everyone’s been through the training.”

Question #3: Let’s Be Honest, How Do You Treat Your Employees? 

If the online reviews give you 2-stars out of 10, chances are you are only attracting the most desperate of employees, and there’s something very wrong with your company. A little goodwill, such as free coffee or filtered water or a monthly potluck actually do a lot of good for employee morale. It does not take much.

Question #4: Is The Hiring Manager Bad At Their Job?

Sometimes it is not an employee who is the problem. After all, you have a high attrition rate. Look more closely at two areas — the HR manager and how they treat employees, and whether they are in fact incompetent, along with anyone who is a manager.

Managers in an abysmal company can brighten an employee’s day, even when the company’s culture is cheap, hard-nosed and mean-spirited. Look at all of the managers to pinpoint problem areas. There may be perceived favoritism, over delegation where the manager is perceived as lazy, or they have some other issues that drive employees away.  The hiring manager who stinks at their job costs you a lot of money in severance, finding new candidates, training them, and then watching your investment escape within a matter of 6 months to one year. They may not be good at their job.

Go back to basics and find the uniquely qualified HR manager who knows how to evaluate skills, and get another expert who knows how to conduct interviews. These two professionals are worth investing money in, while lazy HR people who rely only on a database to filter information are obviously costing your business a tremendous amount of money.

It is your choice: continue taking the easy way out, or face the music, and make the easy decisions to improve your company. Treat people well and they will work for you for years.