3 STEPS TO REVERSING A TURNOVER TREND
By: Ashley Devick | Feb. 26, 2014 | NFIB.com
Featuring: Linda Dulye, Founder, Dulye & Co.
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Employee turnover can be beneficial when it means new hires are bringing fresh ideas to a small business. But when a business resembles a revolving door and turnover becomes an epidemic, it’s downright scary—and expensive.
The cost factors are numerous, from lost productivity to reduced efficiency from the spread-thin workforce that remains at the organization.
“Managing turnover and really managing your talent—and especially your best employees—is something that any employer, including small business, can take proactive actions on,” says Linda Dulye, the founder and president of Dulye & Co., a workplace engagement consultancy in New York.
1. Speak up.
According to Dulye, lack of communication, particularly with a direct manager, and involvement in decision-making are major factors that drive an employee’s decision to leave. Workers tend to feel a sense of loyalty to a business if they feel informed about its performance and involved in daily operations. Increasing the number of cross-team conversations, brainstorming sessions and regular meetings about the performance of the company can help make people feel a part of the team.
2. Learn from those who are leaving.
If poor communication isn’t the problem, small business owners must figure out why people are leaving. “You really need to uncover some root causes,” Dulye says.
Frightened of burning a bridge, exiting employees may feel uncomfortable being fully honest with the small business owner. Instead, Dulye suggests small business owners have trusted employees conduct exit interviews and relay the information to you.
Or, bring in a human resources consultant to conduct the interviews and have that person follow up with people who have already left. It allows for more honest answers.
3. Hire the right people.
If a company is facing a high turnover rate, it could be the result of poor hiring practices. To find the right employees, Claudia St. John of Affinity HR Group in Cazenovia, N.Y., suggests adding behavioral interviews to your hiring process.
For example, if exit interviews reveal employees are leaving because of the high-stress nature of the available position, behavioral questions such as “Describe a time on any job in which you were faced with stresses which tested your coping skills. What did you do?” can give clues to how a candidate will respond.