"I think one of the keys to leadership is realizing everyone has gifts and talents. A good leader will learn how to harness those gifts towards the same goal." ~Ben Carson
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Finding a fit for a job is a little like finding a great wardrobe for the right occasion. Sometimes, the item is amazing but it doesn’t match the rest of the outfit. This is one of many ”roles of a CEO.”
Most employees have felt mismatched at one time or another.
You need to match:
-the employee to the company
-the employee to the roles/tasks
-the employee to the manager
If any of these are not a match, the entire ensemble can be a disaster.
In a typical full time job, a person will spend around 2080 hours at work, not including hours getting ready or driving to and from work. These are either happy hours or pure misery. Over half of your “awake” life can be trying to earn a living, and the satisfaction at work has huge implications for mental health and happiness outside of work. Cutting a paycheck and providing a means to paying bills is certainly a nice thing, but is that all it takes as a “boss” to ensure employees stay? What are the costs of an unhappy employee, and how can you mitigate that risk as an employer?
The challenge business owners face with their employees is that when they leave, they take their technology, clients, secrets and/or book of business with them. Essentially, employees can leave with everything that makes up YOUR business. This is real money walking out the door, and often can have devastating effects on a small to midsize business.
In the case of sales people, the customers trusted the person who sold them their account on some level. If they didn’t, they would not have signed the contract, right?
So that leaves a few key questions for your operation:
1) How do you keep the employees you want to keep?
2) Are your employees in the right roles?
These are complicated questions, and in order to address these questions we are going to stay at a high level. Let’s look at these one at a time.
HOW DO YOU KEEP THE EMPLOYEES YOU WANT TO KEEP?
First of all you need to realize these are human beings, and “human capital” has value. I really don’t like that term…this are “humans,” but I digress. Attrition is EXPENSIVE? You think it’s just an employee? Think again. As Accenture so aptly found, it takes at least 6 months to be productive and in almost 1/4th the cases a full year. Attrition is estimated to cost up to 2.5 times an annual base salary.
That sentence is an important one and deserves emphasis. If you have an established employee with a $50,000/year salary and they leave, it will cost you up to $125,000 to replace. Do I have your attention? Why does this happen? One reason it happens is because 94% of business owners say it takes over 6 months to be productive. 23% say it takes over 1 year. That’s a commitment.
The top 3 reasons employees leave?
Have you ever heard the saying that employees don’t quit jobs, they quit managers? Bad management is the number one reason people leave a job. There are two things you absolutely must do.
-Invest in management training and make sure you have the right people in place to manage.
-Conduct exit interviews to get honest feedback on your chosen managers. You may find that you can save a lot of time and money on people simply by identifying a management issue before it happens.
2) WORK/LIFE BALANCE
Your employees will love you if you acknowledge this as an issue. I realize you want to squeeze all the productivity out of an employee, but keeping them in the office until 7PM on Christmas Eve will have them hating you and plotting to destroy you. Be empathetic and compassionate. Assess each employee separately. A “one size fits all” is rarely a good approach, but used almost exclusively in a business atmosphere. Some employees need flexible schedules. Some employees may be candidates for telecommuting.
If you give them a stable place to stay with a good work/life balance and good management, you are well on your way to a successful approach.
Look into doing what you can, and your employees will reward you with their work and loyalty.
3) NO ROOM FOR ADVANCEMENT
Do you know what role each employee would like in the organization? Notice I didn’t say “job title” or “position,” as this is a role. If you don’t know the answer to that question, there is a risk of losing people simply because you have not offered them a career path.
Sometimes advancement can be monetary. Did you know the studies show financial incentives decrease performance? Employees want simple appreciation and recognition for hard work. Some bosses like to refrain from giving praise in hopes employees will work harder to earn a compliment…don’t be “that boss.”
ARE YOUR EMPLOYEES IN THE RIGHT ROLES?
The outfit needs to match. Sometimes you have a beautiful brown pair of shoes and you may find you are trying to wear them with a black outfit. Much as you evaluate your clothes, evaluate your team to make sure you are utilizing their talents the right way.
There are 32 characteristics of quantifiable personality traits, and each one has good and bad qualities that could be present. For example, someone highly achieving could be driven and motivated…or they could plant illegal supplements in their boss’ desk and call in the dogs. Companies may want good achieving, not so much the bad. Assessment and personality software is terrific for telling you more about the people you spend half your life with than you can see day to day.
People love what they are good at doing. Your job is to understand the various personalities and put those personalities and skills in a winning situation. Sometimes a simple adjustment to someone’s duties can make the difference between being success and attrition.
Employee attrition can be the difference between success and failure. Reducing attrition can be as simple as offering schedule flexibility, understand talents, understanding desires, or management. If you make your employees happy, your bottom line will thank you for it.
ABOUT THE AUTHOR:
Eric Beans is CEO of Texting Base, Inc., out of Orlando, Florida. Texting Base is a cloud-based software that adds efficiency and power to business texting communications. Combining the efficiency of a “mass text” and the effectiveness of a personal text message, Texting Base uses patent pending software to allow businesses to build relationships with their customers like never before. Prior to Texting Base, Eric was a partner in Premier Mortgage Capital, Inc., a nationwide state charted Mortgage Company that grew to over 1B/Year in originations. Eric is an inventor, investor, and entrepreneur. Eric has experience in writing, radio, TV and entertainment.