What Causes Employee Turnover?

At Shoppers, Inc. we are very passionate about great customer service, measurement, and teamwork.  The article below from John Tschohl about “What Causes Employee Turnover?” relates to our goals and passions.  Hope you enjoy it!

What Causes Employee Turnover?

August 21, 2018 by John Tschohl

Very few firms understand the cost of employee turnover and the damage it can do to their brand. Take a look at how your company values people from the front door to the corporate level. The mindset is pretty simple…the less you pay them the easier they are to replace. Not true!

Employees at the bottom of almost every organization are the face of your organization. I estimate that 99% of the customer contact is with these employees and they are the least respected and least compensated in any organization.

According to the U.S. Bureau of Labor Statistics, the unemployment rate has been dropping drastically since 2012 and is now at a record low of 4.1%.  So, how do you keep your good employees? What does your company offer to keep your turnover rate as low as possible?

It’s not all about the money.

In a survey of nearly 1,000 employees from large businesses, put out by Harvard Business Review, they found a strong connection between recognition and job satisfaction–seven out of 10 employees who received appreciation for their good work said they’re happy with their jobs. But among employees who hadn’t received recognition, only 39 percent say they’re satisfied at work.

Human nature is such that humans like to feel valued and special for what they are and what they do. Employees when they leave always tell you it is for more money. They have a spouse and kids they have to support and you tend to believe them. Frankly, it is hard to convince a person that money is the only reason. Very few employees will tell you the truth as they do not want to burn bridges and are looking for a job reference.

There are several reasons why employees start looking and then leave: Money is on the list but not the driving issue.

  1. No one cares.  I do not feel appreciated or loved. (Very few employees will ever admit to this)
  2. I do not like my boss.  The boss believes everyone works for money and you should be happy to have a job. Many managers are jerks.
  3. I do not get along with employees.  No fun going to work. It creates as much excitement as going to the dentist.
  4. You have some really rough customers.  Mean spirited. Too many problems and complaints.
  5. Not enough money.  Considering all these problems I am not paid enough to stay here.

What is the Cost?

It is difficult to give employees recognition that is genuine, timely, sincere, and specific. The appetite is huge.  In the US many firms have openings, and when employees leave it is becoming more difficult to find replacements, even harder to find great replacements. Remember, the top people will opt to leave, where your incompetent employees will stay forever.

What is the Solution?

Many managers will say just pay people more money.  The US airlines used to do that and the results were really bad. Pay people as much as you can. Be generous. If you really want to own the employee’s heart and mind then use recognition.

All managers and supervisors need to be trained on how to manage and motivate employees for excellence. Most people are promoted to supervisory or management positions with little or no training in leadership and how to manage and motivate employees.  The smarter the manager the less likely they are good at the soft skills. They think with their head. Most believe that you are lucky to have a job. In developing countries, because labor costs are a lot less most firms just add more employees and probably have 25% more employees than they need.

My form of recognition is a formal training program…a structured course.

Employees are driven by recognition. Everyone wants to feel valued, loved, and appreciated. In 1976 the first program I developed was called, Better Than Money. It taught managers how to motivate employees with techniques far more effective than money. That was 42 years ago.  The principles today are still the same. All employees want to feel valued and appreciated.

I also developed a program called Coaching for Success. It is a one-day seminar. We use high-impact videos to dramatize the skills and techniques we use, a powerful facilitator guide if you want to implement the program yourself, and a 4 color-perfect bound manual for participants. Click here for more details and pricing.

If you’re looking for ways to increase engagement, loyalty, and low turnover, take some time and show your employees some appreciation. If you don’t make time for those who deserve it, they may start to look elsewhere for a company that will.

John Tschohl, the internationally recognized service strategist, is founder and president of the Service Quality Institute in Minneapolis, Minnesota. Described by USA Today, Time, and Entrepreneur as a “customer service guru,” he has written several books on customer service and has developed more than 26 customer-service training programs that have been distributed throughout the world. John’s monthly strategic newsletter is available online.

 

Share your thoughts on our blog here or Facebook page.

 

Team building is a delicate process. Anyone can put together a group of talented people, but it takes a dedicated team leader and a devoted coach to effectively bring everyone together. A good coach mentors team members, and puts employees in the right place to succeed. To get started, click here.

 

Do you know how much a lost customer costs your company? Do you know where you need to improve? Download our free Return on Service Calculator here to determine the impact of a lost customer – and, therefore, a value of keeping customers loyal and happy.

 

Learn how to make your company a leader in customer service – contact Shoppers, Inc. for more information on Service Quality Institute programs.

For more information contact Amy at Amy@InsightYouCanUse.com or 800-259-8551 x220

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