Consider these startling facts The Bureau of Labor Relations (BLR) reported in September the average company had 2.7 openings, 3.4 hires and 3.4 terminations. That means for every three people you hire three will terminate leaving you with your original two openings. BLR reports have consistently shown a high monthly turnover rate going back over several years. The highest rate of turnover is in the professional and business service industry, which represents the majority of Marion County employers. Is it any surprise that you are continuously clamoring for employees?

According to Christopher Mulligan, of the Management Learning Track, the fast food industry showed a 55% increase in productivity in the stores with low turnover. In call centers lost productivity and profitability costs 3 times more than hiring and training. Health care centers with high turnover had 36 % higher per patient costs than their counterparts. Retail stores must sell 3,000 pair of slacks to offset the loss of one employee. Supermarkets direct and indirect turnover costs are $1.40 for every $1.00 of profit. And on and on.

Most employers realize in an economy with fewer workers and more jobs you will have higher turnover. Most employers know high turnover is costly but perhaps you didn’t realize just how costly. You may want to run some numbers on your company to find out what turnover is costing you.

Every employer wants to do something about turnover and retention. A Price Waterhouse Coopers survey asked CEOs to identify the top factors their business can plan for that will be most critical for success over the next 12 months. An overwhelming 78 percent pointed to retention of key workers as the top factors.

How will you manage retention of your key employees?

First you need to understand why employees join a company. Most likely they looked at the organization as the type they wish to work with, the job description fits their job interest and they felt comfortable with the leadership. Why would that same employee leave the company? The main reason they left was because of poor leadership. The job description and the organization were lesser reasons. 

Next you need to understand why employees stay. The number one reason employees stay is leadership. The second reason is relationship with co-workers. Pay and job duties consistently fall to the bottom of the list of reasons. Employees want fair treatment, care and concern and trust. Vacation and holiday pay are not reasons employees stay. 

If you are experiencing above average turnover take a close look at supervision and management. Your leaders need to identify and find talent. Once a manager identifies talent, he or she needs to become a coach and develop that talent. Managing is an ongoing skill and in order to retain good workers managers need to be trust builders, communicators, esteem builders, and they need to be flexibility experts. They must also become retention experts and consistently monitor retention looking for ways to take pre-emptive actions. If your management team is lacking in any of these areas, provide management-training classes to help their development. It will be a good beginning to improving your retention program. 

Mary Thomas, President of Mary K Thomas Employment Services, submitted this article on behalf of the Marion County Chapter of the Florida Staffing Association.