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A Four Step Process to Easily Reduce Employee Turnover

Aug 17, 2007
Would you like to reduce employee turnover? Who wouldn't? Do an internet search of "reduce employee turnover" and you will get lots of technical and complicated advice. Actually reducing turnover is a lot simpler than what many of the articles prescribe. The solution is simple, place the right people in the right job, recognize their performance, reward them occasionally, and treat them with respect. Yes money and benefits are important but study after study proves that they aren't the most important factors in employee retention.

So why do companies not focus on this issue? There are lots of reasons I hear but frankly they all amount to weak excuses. Take a look at the companies in any industry and you will find a number with high turnover and some with low turnover. The difference is caused by just subtle, but very effective, differences in their hiring and retention strategies. Of course the first step is to have a strategy! Here is a simple four step process to get your employee turnover lower.

First, use a validated and legal pre employment test to screen out people with a poor work ethic and bad attitude that make it through normal hiring processes. They typically take about 20 minutes and they reveal more about that candidate then you will ever get in an interview, job app or background check. Average cost $20. Let someone else hire the riff raff.

Second, use a job fit assessment to match the right people to the right job. A person may interview well, have the right education and background, but doesn't mean they fit the job. Find out if they have the same profile as your top performers. To do this is very simple with the employee assessment tools available. They are easy to use and understand, and will help you determine if the candidate fits the job. Average time is about 30 minutes with a cost under $100.

Third, do employee evaluations regularly. People need feedback, good or bad. How can we expect change if we don't communicate? Use a simple online system, so administration is a snap and there are no excuses for not getting them done. Remember, people leave supervisors, not companies. They take about an hour to prepare and about the same to present, with a cost of about $25.

Finally, implement an employee recognition program. Reward employees with gifts on service anniversaries or to recognize significant achievements. People need this recognition and, once again, there are all sorts of online employee recognition programs that are easy to implement. You control the budget but a nice $25 gift says a lot and only takes a few minutes to do. Most importantly, say thank you. It's free and it goes a long way to making people feel happy and appreciated.

So for a modest investment and very little time, you can reduce employee turnover significantly. That will give you a substantial return, given the high cost of turnover. If you are a company suffering from high turnover, take a look at these four easy steps and get on the road to improvement.
About the Author
For information on the solutions to handle this issue, contact Robert A. Cameron. He helps employers improve the effectiveness of employee selection, hiring and development. They can be reached at 954-385-8701 or visit their website at http://www.racameron.com
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