By Sid Chadwick
“…Among prime age workers aged 25 to 54, around 20% anticipate leaving within a year……”……..The Wall Street Journal, April 25, Section A
Imagine retraining 20%+ of your workforce….every year…..going forward.
What % of your costly errors and spoilage… are created by “new employees”…? Take a deep breath. …Now increase that spoilage percentage… by 20%...!
Over the last year, did your customers have higher or lower “reliability of delivery” expectations….? (Increase your number of lost important customers by…let’s say….conservatively…20%...)
There are strategies to counteract these conditions:
- The company should have a central goal – that’s frequently mentioned by Sr. Mgmt. And every department should have supporting goals, in writing, that can be measured, and reported - that support the company’s central goal.
- An internal monthly Newsletter – that keeps everyone “connected”- especially re. new customers, new employees, and major upcoming events and awards. Note: Humor counts.
- A Monthly Report from Sr. Mgmt., especially in writing, re. company progress, what needs to improve, testimonials from customers, and recognition for sacrifices made by employees – for the company.
- Employees should be kept updated re. the company’s contributions to community organizations, like schools, food and fund-drives, and volunteer commitments (e.g., “Read, Write, Spell”.)
- Contributions from front-line personnel should always receive recognition from Sr. Mgmt.
- New employees should be assigned a Mentor – for at least their 1st 90 days. (Turnover of new employees is about 500%+… that of long-term employees.)
- Semi-annual written Performance Reviews, where the employee is asked, among many other issues, “What would you like to be doing here in a year or two…?”
Additional costs of a new employee are easily twice that of their 1st year’s earnings, when counting: (a) recruitment, (b) testing and interviewing, (c) slower productivity, (d) errors and spoilage, (e) lost production from a position’s vacancy, and (f) lost customers and orders.
A treasured client recently lost two key employees, that if an “Employee Survey” had been administered, problems in the ranks would most likely have been uncovered – and hidden problems - allowed to be addressed.
How much pain are you willing to experience, before you commit to doing everything necessary – to stop your “Employee Exits”….?
I assure you, well-run, profitable companies are doing most if not all those suggestions….!
The Wall Street Journal… recently reported that the greatest threat to heightened Inflation… is employees continuing to leave – for a 10%+ pay increase………..