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What employee retention does to your bottom line

05 Jul

Employee retention…or lack of it…is a very expensive proposition…

Now…I am not advocating keeping the wrong people for the sake of saving money…

The first thing you need to do…is hire the correct people…

But once you do hire the correct people…it is very important… to keep them…focused…motivated…invigorated…and going forward in a positive direction…

A recent study shows…that 85% of Human Resource executives…state the single biggest challenge they have in managing the workforce…

Is their organizations inability to recruit…and retain good employees and managers…

Few business owners or executives realize just how much employee turnover impacts their bottom line…

There are many articles and reports out there…that state the actual cost of employee turnover…

Here is a link to the Sasha Corporations estimates……

http://www.sashacorp.com/turnframe.html

If you add up all of the time…energy…and resources…it takes somewhere between five and ten thousand dollars…to replace a typical employee…

A manager???

You can easily double if not triple that amount…

So what can you do as an organization…to limit the amount of turnover…and make sure the turnover doesn’t have a profound effect on your bottom line…

Here are 5 steps to get you started…

First of all…you need to have a positive working environment…

One of the main reasons employees quit…is the relationship with their immediate supervisor…

The fact is…many managers are unaware how their actions and decisions affect employee turnover…

Properly trained and coached managers… play a role in an effective recruitment and retention strategy…

Managers need the correct…skills…tools…and knowledge…to help them understand employee retention…

Secondly…you need to reward and reinforce the right behaviors…

The old saying goes…what gets rewarded…gets repeated…

Money and benefits may attract people to the front door…

But something else has to keep them from going out the back…

People have a basic human need… to feel appreciated and proud of their work…

Recognition and incentive programs help meet that need…

The third step…You need to make sure that the employee is involved and engaged at all times…

People may show up for work…but are they engaged and productive??

People are more committed when they can contribute their ideas and suggestions…

This gives them a sense of ownership…

The fourth step…you need to constantly develop the employee’s skills and potential…

For most people…career opportunities are just as important as the money they make…

In a recent study…more than 40% of the respondents said…they would consider leaving their present employer for another job with the same benefits…if that job provided better career development and greater challenges…

Skilled people will not remain in a job…if they see no future in their position…

And the last step…evaluate and measure…

The evaluation process includes the measurement of attitudes…morale…and turnover…

There should be an employee satisfaction survey at least once a year…

You should initiate interviews and surveys… concerning the real reasons people come to…and leave your organization…

And you need to measure the cost of turnover…and make all managers aware of that cost…

Does employee retention impact your bottom line??

You bet it does….

Here is a link to the video of this blog;

http://jimkristoff.com/Videos/EmployeeRetention/WhatEmployeeRetentiondoestoYourBottomLine/tabid/91/Default.aspx

About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

 

You can follow me on:

 

My website: www.JimKristoff.com  

Twitter: @jimkristoff

WordPress blogsite: https://jimkristoff.wordpress.com/

Blogspot blog: http://jimkristoff.blogspot.com/

DealerElite.net: http://www.dealerelite.net/profile/JimKristoff

Automotive Digital Marketing.com: http://www.automotivedigitalmarketing.com/profile/JimKristoff

LinkedIn:  http://www.linkedin.com/in/jimkristoff  

Youtube: www.youtube.com/user/jimkristoff

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Posted by on July 5, 2011 in Archive of all blogs

 

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