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retain employees

4 Ways to Avoid the Dreaded High-Turnover Rate

The cost of employee turnover is outrageously high. When a company loses a salaried employee, it can cost anywhere from six to nine months’ worth of the departed employee’s salary to hire a replacement. This means that if an employee is being paid $40,000 a year, the cost of everything from recruiting to training expenses will be around $20,000 to $30,000. In addition to costing your company a fortune, it can discourage talented employees from joining your organization. High turnover is one of the major red flags job seekers look for when considering a new employment opportunity.

Here are four ways companies can step up their game and hold on to the talented employees they worked hard to acquire:

  1. Get Rid of Top-Down Management

Everything in the business world is evolving and the concept of management is not immune. Many of the old rules and practices no longer apply, and the lack of a modern workplace philosophy is forcing skilled workers to leave their current company and take their talent elsewhere. The top-down approach to leadership and ruling with an iron fist is no longer a popular way to run a business.

In today’s workplace, the term “collaborative leadership” is commonly cited as a strong approach to employee management. This concept emphasizes leading by example and focusing on both corporate and individual benefit. For instance, Jacob Morgan, author of The Future Of Work, explained in a Forbes article how AMP Bank in Sydney, Australia makes it a point to sit down with each employee to explain how new technologies and strategies can benefit both parties.

It’s important to realize the vital role management plays in the development of a company. Gallup estimates that managers account for 70 percent of the variance in employee engagement scores across business units. Great leadership is a crucial factor in retaining employees; it goes back to the famous saying that “people don’t leave jobs, they leave managers.”

  1. Learn What Millennials Want

By 2020, it’s estimated that nearly half of the workforce in the United States will be comprised of millennials. Therefore, it is crucial to determine what these younger employees want out of a company. Ask yourself the following questions:

Millennials are looking for more than just a job with a steady paycheck, they want careers in which they are engaged with their company’s goals, and can develop their professional skills. A 2014 survey conducted by the Harvard Business Review and The Energy Project found that employees are most engaged when these four core needs are being met:

  • Value – Being cared for by their supervisor
  • Purpose – Finding significance in their work
  • Focus – Prioritizing
  • Renewal – Ability to take needed breaks

Regardless of the age of the employee, there is nothing worse than being stuck at a job that isn’t motivating. Fostering employee engagement can be difficult. However, emphasizing honesty and transparency for both company and employee alike can be integral in obtaining uninhibited employee feedback to gauge the direction of your workforce and what motivates them.

  1. Promote a Culture of Innovation

Everyone wants to be involved in a cutting-edge organization. Companies that want to remain ahead of their competitors must do their best to promote this mindset both internally and externally. For starters, when you’re advertising a job opening, take a step back and examine what your company is doing differently than similar organizations. Once you have a firm answer, drive this idea home and showcase what your business is collectively bringing to the big picture compared to your competitors.

Based on your business, this can be a daunting task. But, regardless of what product or service you provide, there is always room for innovation. Take Michelin for example. Tires might not seem like an innovative product but the science behind how rubber interacts with the road is complex. To promote a company-wide innovative mindset, Michelin sponsors cross-functional hackathons and internal incubators where employees are free to take risks and come up with new ideas for the good of the company.

Making sure that innovation is a strong aspect of your culture can play an enormous role in keeping employees engaged and motivated.

  1. Recognize and Reward Employees

While this one might seem obvious, it is still accurate: everyone likes to know their hard work is being noticed. Great employees are hard to find, and even harder to keep. So when you notice colleagues going above and beyond the call of duty, it’s important to provide plenty of recognition and rewards to encourage repetition. Recognition is essential to employee engagement and The Corporate Leadership Council shared in a recent report that highly engaged employees are 87 percent less likely to leave the organization.

Events like company-sponsored happy hours or weekend getaways celebrating a strong quarter can go a long way in demonstrating to employees how much their work means to an organization. Going beyond these types of “job well done” gestures, making sure top performing employees are appropriately compensated is the most important factor in employee retention.

To address this, you can try setting up recognition and rewards programs that encourages daily praises and constant appreciation. Or consider implementing programs within the workplace that are transparent when it comes to pay raising goals, such as merit-based pay structures. Just be sure to set goals at a level in which employees will need to put their best foot forward, while remaining reasonably attainable.

Talented workers tend to know their worth. If you are not paying them appropriately, they will have no problem finding an organization that will.

Over to You

Retaining high performing employees in the current business climate is very challenging, and with the many detrimental costs of employee turnover, your company’s bottom line could be adversely affected. If your turnover rate is higher than you would like, it might be time to take a close look at day-to-day operations and find the root cause as to why people are so willing to leave your organization. Sometimes, it is a simple fix. Other times, a complete organizational reinvention is needed to ensure the external perception of your organization matches the internal. At the end of the day, a company that focuses on engaging their employees, whether through strong leadership, culture, recognition, or rewards is on the right track to reducing turnover.

To learn more about employee turnover, check out the blog post How to Spot Who’s Going to Quit Next.

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About the Author
Lori Wagoner is a market research consultant. She advises small businesses on new ways to find local and national business. She’s an avid blogger and writes for sites such as Small Business Can, Tweak Your Biz and Customer Think. You can catch her on Twitter @loridwagoner.

 

Customer Service: Do it Right the First Time!

We have all experienced the good, the bad and the ugly of customer service. Often, customer service tends to fall into the bad and ugly categories. We have all gritted our teeth before calling a company for service or walking into a store to return an item, fearful of a confrontation because of a rigid policy, or simply because of the bad attitude (usually attributable to ineffective training!) of the person serving us. But whatever the cause, poor customer service can have a lasting effect on both the business offering it and the person on the receiving end.

In my 20+ years as a customer service professional, I have learned a lot about how to accentuate the good and minimize the bad and ugly. Whether I am checking out at the grocery store or out to dinner with friends, I find myself observing the level of service being provided. The one constant I find missing, is a lack of personalized service being provided. Many service representatives don’t make eye contact, let alone smile or engage in small talk. Instead, they focus more on the task at hand rather than the customer – the person – in front of them. This is because many service representatives and call center employees are trained for efficiency and are expected to check several boxes, such as validating callers first, rather than acknowledging the customer and their concern. This impersonal approach does little to demonstrate to the customer that they are a priority and that their issue is of importance to the customer service team.

With all that in mind, here are a few helpful hints to help ensure your customers are receiving The Good: Unparalleled, personalized customer service:

Do:

  1. Develop a personalized customer service philosophy and ensure your employee training clearly conveys this philosophy. What kind of experience do you envision for your customers every time they interact with your company?
  2. Make your main measure of success Customer Satisfaction instead of Average Handle Time. If your customers are happy, they will tell you. And if they are not, they will tell their friends and family, or even worse Yelp or Glassdoor.
  3. This one never gets old: hire people who are passionate about helping people. Many skills can be learned, but helpfulness tends to be part of the fundamental nature of a person.
  4. Treat your employees well; they are your most valuable resource. If your employees are happy (measure their happiness frequently), your customers will be happy as well.
  5. Empower and support your employees to deliver brilliant customer experiences. Employees who feel supported, recognized and empowered will be engaged. Employees should also be trusted to override certain policies to make customers happy (be it a slight alteration to a return policy, or applying goodwill credits or perhaps extending a recently expired promotion to a loyal customer).
  6. Have FUN at work!

Don’t:

  1. Utilize Interactive Voice Response (IVR) – Don’t do it! Live answer is the way to go. IVR’s are frustrating for your customers and are a barrier to providing personal, effective customer service. I was recently shopping for new call center software and one vendor kept pushing their self-service IVR functionality. They couldn’t understand why we weren’t interested. By avoiding the use of IVRs, it is far more likely that your customers will be satisfied by the personalized, specific assistance they received.
  2. Outsource – Unless you have full control over hiring, training and firing, then I strongly recommend against outsourcing. Sure, it might save you money, however it could cost you customers. Outsourced employees are usually underpaid and lack loyalty, resulting in a lack of commitment to your customers and your brand. When I managed the quality program for a large Canadian telecommunications company, my team would often recommend the removal of outsourced employees from our campaign and what would the outsourcer do? Turn around and put that employee on another company’s campaign.

Here at Achievers, our in-house Member Experience Team delivers a superior and personalized customer experience to more than 1 million eligible users in over 150 countries. We are committed to the highest level of quality and excellence, derived from our in-house staff and we recognize our Member Experience employees for providing the kind of personalized interactions that make for good experiences. Customer Satisfaction is our most important metric because we know if our members are delighted then it will drive the overall success of the program. Our mantra is simple:

Our Vision: To deliver a World-Class Customer Experience

Our Mission: To create Raving Fans by delighting members with our commitment to Service Excellence.

Dare to be different, and do what is right for your customer!

Check out another blog by Marci Peters on 5 Keys: How to Become an Inspirational Leader.

About the Author

Marci Peters

Marci Peters began her 20+ year Customer Experience & Contact Centre profession in the telecom space, but she has spent the last four years with Achievers – Changing the Way the World Works. She believes strongly that customer needs shape the business and employees are your most valuable investment. She has a proven track record in tactical execution of strategic customer initiatives to transform service delivery and drive positive results. View Marci Peters’ LinkedIn profile here.