Very few firms understand the cost of employee turnover and 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 mind set 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.
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 manager positions with little or no training on 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.