Increase Profits by Decreasing Turnover
Most employers know that employee turnover is one of their greatest expenses. Severances, training new employees, lost productivity are just a few of the issues that cost you dearly as an employer. So it seems fairly straight forward that if you can decrease employee turnover you will save money and increase profits.
So the question becomes, how do you cut down on employee turnover? Here are four reverse to-dos to help you learn where you could be making mistakes. Focus on not doing these four things and decrease turnover instantly.
1) Don’t let your staff know they are appreciated. Saying thank-you is really over rated. Your staff won’t appreciate it anyways. And forget about celebrating their achievements, surly that won’t encourage them take pride in their work. No, of coarse you should appreciate your staff! Simple thank yous can go far to showing you care about staff efforts. And if you want your employees to take pride in their work you need to stand up and celebrate their work. Show them and the rest of the team how proud you are off their accomplishments.
2) Kill their hopes. Jane from accounting has been deserving and hoping for a promotion for a year and a half now. Obviously you should pass her over because she is just so over eager. And she doesn’t really deserve any explanation. Let her stew on it so she quits in 6 months. No, you need to keep your employees positive or their work and your profits will suffer. If you must pass someone over for a promotion they deserve an explanation. And the respect from you to tell me to their face and honestly.
3) Pay minimum wage. It’s legally all I’m required to pay my employees so that must be enough. If you pay minimum wage it basically says to your employees that if you could get away with paying them less, you would. No employee is going to respond well to that. Even if you can only pay a small amount over minimum wage, it will help instill confidence in your staff that you actual care.
4) Do nothing to discourage job burn out. Why would you be concerned with the stress or frustration your employees face? That’s their personal issue; you just pay them to do the job. Burn out can lead directly to your employees quitting. This issue is real and your problem if you are concerned with keeping profitability high. How can you combat it? Be understanding of the monotonous jobs in your work place, be flexible with breaks and time off. Consider offing job rotatation to keep your staff engaged.
Just like every penny counts, so does every staff member. And any one staff member not content with their work life could quit and cost you. So taking care of every single staff member is far more important then many employers give credit. Put your staff and profits at the same bar and you should have many years of growth and positivity ahead.
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