It is possible that many companies think early turnover is just “the cost of doing business.” My recent work with the U.S. Census Bureau makes clear that there are fewer new workers coming our way, so I think it is time that we get a lot smarter about who we hire and how we retain them. Here are four ideas that I promise will work because if you don’t address it now, turnover may just cost you your business.
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.
Recently I’ve seen two examples of organizations essentially saying that increased turnover is unavoidable and then proposed work-around plans with no proven track records. In fact these voices are saying that entire industries, supply chain management and nursing, have no fix for turnover and they should waive a white flag of surrender.
Data shows a four-day workweek is popular with employees. On the company side, data suggests work satisfaction and productivity are up, recruiting is easier…and employee turnover is down. And during these days workforce shortages, every company is seeking a recruiting edge. Could this be “it”?
Who is taking the lead to initiate reporting and accountability for nursing home employee turnover? Our U.S. government. Imagine what we could learn if all healthcare companies reported turnover data.
Engagement surveys are targeted toward generating company-wide programs, exit interviews aren’t valid data because employees don’t tell the truth, and CEOs want turnover percentage benchmarks instead of cost. Even together, the data from these three common tools give you absolutely no viable pathway to cut turnover.
This is a startling statement from the normally conservative Wall Street Journal. The pandemic has been the universal game-changer such that American’s work habits and work values changed in ways comparable to having experienced a war.
A recent Harvard Business Review article provided convincing data that top performers are the first to quit when new hires are getting paid more than they are. Overall salaries are projected to increase another 4% this year, causing even more salary compression. And importantly, the increase in online-everything makes it far easier for employees to know how much peer employees are getting paid…especially new hires whose pay is blasted across Indeed and other hiring sources. So yes, everyone knows.
My professional passion for cutting turnover began decades ago with my CEO saying words that HR professionals, dread: “Turnover is high so HR, go fix it.” Looking back, I knew then that I had learned a lesson mostly unknown across HR circles.
The key turning point is when top team has determined the dollar cost of turnover and realizes paying a percentage of the cost to fill those jobs is a win/win, and actually a bigger win for the company.