A Fix for Employee Turnover

EE OrientWEBHere is a quick quiz for you. What can improve staff commitment, reduce turn over and increase profits? Give up? Employee Orientation is the correct answer. Nowadays you may know it as Onboarding. A recent report by the SHRM Foundation suggests, “According to recent data, more than 25 percent of the U.S. population experiences some type of career transition each year. Unfortunately, many transitions are not successful. Half of all hourly workers leave new jobs in the first four months, and half of senior outside hires fail within 18 months.” A contributing factor is that the Onboarding process is usually afforded minimum attention and respect.

However, it is essential that everyone understand how difficult it is for a new employee to become a full contributor to the organization. Helping new employees get on board is more challenging than one might think. An article by the University of North Carolina suggests that the Onboarding process, including follow-up, should last the entire first year. The article goes on to say that an effective program helps a new employee increase self-efficacy, improve role clarity, help speed up the socialization process and provide cultural knowledge.

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Want to Solve 90% of Your Communication Challenges?

oneWebGranted, we humans have been practicing our communication skills for eons. However, we are still amazingly good at reverting back to almost prehistoric faux pas when it comes to sending and receiving even the most basic communication. Some influences can make communication more difficult. For example, noise can interfere with communication. Noise can be any kind of noise, but may include our own thoughts, perceptions or biases. Did you know that organizational growth could also interfere with communication?

During the startup phase, it’s easy for the CEO to communicate with subordinates. The company may even have a sense of family. In fact, almost anyone in the company can easily reach others, deliver and receive messages. It is easy to clarify or even make necessary corrections to communication. As a company grows, dynamics shift. This calls for good management skills on the part of the CEO.

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Projects, Processes and People

Proj Mgt WEBThe more people, projects and clients a company has, the more complexity develops. To manage all of these productively, there must be processes in place. When your company had 10 or even 20 employees, allocating resources to a project was relatively easy. As growth ramps us, throwing people at problems no longer works. Overhead increases and the leader who is asleep at the wheel will begin to lose profitability. Now you need good managers. However, growing organizations require managers who are knowledgeable about what an effective process looks like, how to manage it, when and how to improve it and how to get work accomplished through people.

“A cardinal principle of Total Quality escapes too many managers: you cannot continuously improve interdependent systems and processes until you progressively perfect interdependent, interpersonal relationships.” Stephen R. Covey

As your organization continues to grow, it’s important to review current processes to ensure they still add value in the future. At a certain point in organizational growth, the CEO no longer has the ability to keep his or her finger on every aspect of the company, can no longer catch problems before they happen and can no longer make every decision. When your company reaches the point that one person can no longer manage it, processes become an important strategic tool.

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Let's All Turn to Page....

SingingWEBRecently, I was debriefing a client on a leadership program I had just conducted and we were discussing some follow-up coaching. I assured the President that I would ensure that everyone aligns with the vision of the organization, to which he replied, “Oh we have lots of visions here.” At first, I thought he was being facetious, unfortunately, he was being serious. Even scarier, he thinks it a good thing for everyone to have different visions. Going forward, to say I have my work cut out for me is an understatement.

In start-up companies, it is common for a great deal of energy to come from the CEO’s vision for the organization. Everyone pitches in and does whatever it takes to get a product out the door and delver outstanding customer service. In these early stages of growth, the CEO’s vision and energy keep the company on a path for growth. However, the focus is different in larger and more mature organizations.

As a company moves beyond the business leader’s span of control, communications become more difficult. This is particularly true if systems are not in place that help drive how work is accomplished. The job of the CEO now becomes one of managing the people and setting a clear picture of the future.

In church, the music minister will say, “Everyone turn to page 128 in their hymnals and lets sing (insert the name of your favorite song here.)” Suddenly, the entire congregation is on the same page, singing the same song and is doing it in harmony. How often does this occur in your organization? The ability of the CEO to refocus the company on what they are there to do and recognize the shift from the company being CEO-focused to enterprise-focused is critical. A study by Bain and Company indicated the organizations that have clearly defined vision and mission statements that are aligned with a strategic plan outperform those who do not. To ensure your organization is on the right track, consider the following questions:

CEO, Business Growth, Business

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Tapping Into Organizational Intelligence

WatchWEB

 

If you want a flexible organization, here are some questions to contemplate:BeeWeb

  • Does your organization understand your growth plans?
  • If you are in crisis mode, it is essential for you to have a six-month plan. Do you have one?
  • Does the company evaluate its strategic planning concepts regularly and make adjustments?
  • Is there a feedback loop to identify improvements in processes?

Compare the business of the beekeeper and the watchmaker. Bees produce honey and are self-organizing. In other words, bees are adaptive organisms with the ability to adjust and create innovative solutions to meet the challenges encountered during the natural course of events in nature. If the hive were to be dropped and broken into pieces, the bees would very likely relocate their home base and start anew on the business of making honey.

On the other hand, the watchmaker works in a quite different world. The watchmaker’s world is one of precision and control. Every piece of a watch is machined to within 100ths of an inch. The watches are all finely calibrated and constructed under rigid manufacturing processes.

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How High is Your Company's Voltage?

TightwireWEBHow would you answer the following questions about your organization?

- Are your employees happy?
- When leaders walk in a room, do employees catch their eye and say hello?
- Are employees eager to speak with the CEO?
- Is there laughter?
- Are there interactions, small groups meeting and employees having animated conversations?
- Does the leader know people by name?
- How does the environment look?
- Are people proud of their work areas?

These questions are critical and can determine your organization’s voltage level. If you answered yes to all of these questions, no doubt your organization experiences a level of electricity, engagement and excitement that other organizations can only envy. Alternately, if you answered no to any of the above questions, your organization’s voltage, or employee morale, could be low. Low voltage is indicative of disengaged, unhappy and even angry employees. Voltage is one of the most important predictive performance barometers a company can use in managing the work community.

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Stop Hiring People Like You!

Mirror imageWEBYou’ve found a candidate who is confident, capable, and willing to do whatever it takes to get a job done. Quality hire!! Or, so you think. These traits are more descriptive of an entrepreneur, not an employee. People who like to work for other people are wired differently than an entrepreneur. Employees typically need – and want – more structure and direction, some more than others. As a business owner, processes just slow you down. Of course, every company wants to make quality hires.

A quality hire for one company may not constitute a quality hire for another. How do you, as a leader go about ensuring your hires are quality hires? For one, stop hiring people like yourself. In addition, don’t begin the hiring criteria with the job description. Instead, begin with

  • A clear mission
  • A clear vision
  • A clear purpose
  • Core values
  • Defined position requirements

Once these are in place, benchmarking is next. Once that’s complete, now it’s time for the job description. Above all, ensure that new hires fit into your organization’s culture. It's different in the beginning.

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Does Intention or Knowledge Reduce Employee Turnover?

RevDoorWEBMany of you are familiar with the following two quotes…”The smallest deed, is greater than the best intention” John Burroughs. The other is, “Knowledge is Power” Francis Bacon. This information begs the question, what does this have to do with employee turnover? First, let’s explore employee turnover.

Employee turnover negatively influences three areas of your business, 1) other employees, 2) the bottom line and 3) productivity. If your managers and HR personnel conduct exit interviews, and they should, you may discover that employees leave for the following reasons:

     - Employees are being mismanaged.
     - They feel unappreciated.
     - Lack of resources and support
     - Lack of opportunity for advancement
     - Inadequate compensation

Make no mistake, managing people is not easy. Therefore it essential that leaders understand that running a company is demanding. Systems must be in place that assist employees in being productive and clearly communicating expectations is critical. Moreover, it is essential to understand the benefits retention brings to an organization. Reduced cost is obvious as employee turnover is expensive. The cost of hiring and training new employees can put deep cuts in cash flow and profits. If you need a reminder of turnover costs, check out this resource http://goo.gl/VSWtYX

However, there are other reasons why retention can be an attractive tool in preserving the bottom line.

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