The world’s leading nations have a new common enemy which is that we are all running out of workers. The metric is “birthrate”, and the U.S. is at an historic low of 1.6 in 2023. Then there is Russia. I was watching The Late Show with Steven Colbert which showed a clip from Russian TV that couldn’t possibly have been true. I Googled it and was shocked to see that it was.
Fortune published an interesting article recently about how HR’s role has stepped up due to people-centric issues like COVID-19, the subsequent labor upheaval, and remote work. Their point is that HR now finally has that coveted “seat at the table” that top HR execs have longed for during the past decade or two. The question is what big challenges HR tackles using that seat.
We long-time Floridians know the pre-hurricane drill, and as much as we have physical prep things to do, the emotional worries consume more of our energy. What I saw at Home Depot last night, beyond the long lines of customers buying sheets of plywood to board up their businesses and homes, were the happy faces, top-of-their-games politeness and genuine desire to be helpful to others. Somehow, we all found joy by being in the presence of others who felt their same trepidations.
Losing one technician for a month results in lost revenue greater than $60,000. So a client implemented a program where technicians earn double referral payouts after five new hire referrals because the net is significantly less than the $60,000 lost revenue per opening. By linking referral payouts to the actual cost of turnover, executives recognize that investing in employee referrals is a cost-effective way to reduce vacancies and minimize revenue loss.
Employee engagement strategies often fail due to over-reliance on surveys which many employees distrust. The key to success is recognizing that engagement goes beyond a simple survey score and ensuring executives and managers view engagement and retention as critical metrics that influence overall operational performance, especially through strong leader-employee relationships.
Monday, Amazon CEO Andy Jassy sent a memo to employees outlining several cultural and operational changes including mandating a full return to the office at the start of 2025. For many future years we will read reports and say, “The pandemic caused that” and at top of the list is the work-from-home (WFH) phenomena that today has led to an increased level of tension between employees who have embraced it and employers, like Amazon, who are over it.
Making the connection between culture and people is every company’s objective, as every company wants a good one. According to Harvard Business Review, 89% of companies want a culture of productivity and collaboration. So if our culture is 89% similar to so many others, how do we distinguish ourselves when hiring, engaging, and retaining the very best talent?
Human Resources work is now, more than ever, the most important work. We are in the bullseye of turnover, engagement, retention, and recruiting challenges with no end in sight. A recent study reveals that the top assignment from CEOs to HR is improving retention. I know you accept this challenge/opportunity/burden, but how are you going to make it happen?
While exit surveys bring a concept that at first glance should be helpful to our overall retention quest, the combination of poor survey design, minimal truth-telling, and the absence of constructive follow-up all dilute their value. You should be asking “Why do you stay?” versus “Why are you leaving?” to get better employee retention data for your company.
Each week I present here the absolute best information and solutions to implement Stay Interviews and cut employee turnover. But today, I want to invite you to spend a few days in Florida learning it all such that you could return home to MAKE IT HAPPEN…to not only reduce turnover but also slash open jobs, make real employee engagement happen, and improve productivity across your company.