Reducing Turnover

The Cost of Turnover
According to Maria Grant, Deloitte & Touche partner in charge of the human capital program in Michigan, it costs $12,000 in recruitment and training expenses to replace the average nonprofessional worker and $35,000 to find a new professional employee. At the Families and Work Institute, experts tell companies it will cost about 75 percent of a non-managerial worker's annual salary to replace him or her and 150 percent of a manager's annual salary.

Source: 2000 Employee Recruitment & Retention, Lawrence Ragan Communications, Inc.

Suggestions for Helping the "Problem" Employee
Sometimes an employee will present motivational problems that seem to defy every solution. Determined bosses might want to make a couple final efforts to get quality work from and possibly even turn such "unsaveable" employees around.

+ Designate a coworker as a mentor.
Some people resist authority and won't respond no matter what "the manager" says or does. But--if the individual has qualities worth salvaging in spite of this attitude--consider assigning one of your best employees as his or her "mandatory mentor." Sometimes, the mentor's work ethics, habits, and attitude--plus the fact that the mentor is a coworker and not a boss--can have a positive influence.

+ Change the scenery.
Sometimes employees are simply in the wrong department. Maybe they have no chemistry with a particular coworker, they're unsuited for the role, or they just get off to a bad start. Yet, in another department, this same employee might start to excel.

Source: 2000 Employee Recruitment & Retention, Lawrence Ragan Communications, Inc.

Good Pay & Benefits Will Reduce Turnover
Better pay and benefits are the two most effective ways to improve employee retention, according to a survey by national HR consulting firm Manchester Partners International. Other retention strategies from the 400 U.S. companies surveyed included:

+ Careful selection in hiring
+ Tuition reimbursement
+ Stock options
+ Profit sharing
+ Casual dress codes
+ Improved training
+ Flexible hours

Source: 2000 Employee Recruitment & Retention, Lawrence Ragan Communications, Inc. Adapted from Business First Buffalo.

Say it with Style
A boss saying "You're doing a great job" won't make employees want to stick with a company. To retain top employees, praise needs to be more specific, detailed and relevant. Managers need good "openers" to help them focus praise on specifically. Here are ten to get started:

+ You really made a difference by. . ..
+ I'm impressed with. . ..
+ You got my attention with. . ..
+ You're doing top quality work on. . ..
+ You're right on the mark with. . ..
+ One of the things I enjoy most about you is. . ..
+ You can be proud of yourself for. . ..
+ We couldn't have done it without your. . ..
+ What an effective way to. . ..
+ You've made my day because of. . ..

Source: 2000 Employee Recruitment & Retention, Lawrence Ragan Communications, Inc. Adapted from Mark McCormack's Success Secrets.

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