Robb Misso on Small Business 101: Slowing Your Turnover Rate
Keeping your best employees on staff is a goal your business should strive for. Letting even one team member go could slash revenue or damage your company’s reputation with both customers and employees. Slowing your turnover rate is a challenge any company can accept and meet if they apply this advice from Robb Misso, founder of Dynamic Manufacturing Solutions (DMS) and Austin Regional Manufacturer’s Association (ARMA).
Understand Your Employees
Businesses love knowing why their employees are leaving, especially if they want to lower their turnover rate at the same time. It is easy for an arrogant leadership team to jump to false conclusions and act on them.
If your leadership team struggles to admit their own obvious mistakes, they could be the problem. Employees hate working for leaders that care more about being right than serving customers and helping coworkers do their jobs well. Always make sure no leader is immune from scrutiny.
First, ask quitting employees why they are leaving your company. They won’t always answer honestly, especially if they want to keep their professional relationships healthy, but their answer will help guide your investigation. Find patterns, then respectfully question leaders if it looks like they are at fault.
Every employee has to follow company policy. Many businesses get defensive over their guidelines or offer shallow excuses to disgruntled employees. Always look at your policy honestly and make adjustments when you need to, even if your choices are odd in your industry.
Finding problems with policy isn’t always easy; the people who create it don’t know how it will impact every employee. This is especially problematic when all policy decisions come from committees the average employee has no access to.
Just because they are a small part of your company doesn’t mean you should dismiss their insights; they sometimes know how to do their jobs better than management. Remember, making an employee’s job harder or more unpleasant gives him a powerful incentive to leave.
Always try to map out the consequences of every policy decision before they become official. Don’t expect perfect accuracy but strive for it. If your predictions are constantly failing, figure out why and praise your team when they exceed your expectations.
Start Valuing Employees
People leave workplaces that don’t value them enough. Every employee is different. While one leaves because his time is worth more somewhere else, another might love his pay but hates how everyone only cares about his work life.
Businesses can’t please every employee, and trying to will only hurt your turnover rate. Remember, employees, don’t like flakey management that always changes its mind. All you can do is offer every employee your best deal.
This means researching their desires; every business niche attracts its own audience. Working in a relaxed grocery store is an attractive option for retirees looking to keep busy, while it won’t pay enough for younger professionals trying to raise a family and pay off a mortgage.
Now that you know your niche, focus on attracting new employees that will stay for the long-term. Sell your company’s strengths in conversations, job descriptions, and official web pages. While you might feel tempted to exaggerate, don’t. Job candidates will notice; they’ve been disappointed by employers before!
Employees should want to stay with your company. If they don’t, ask why. Could you be the problem?
About Robb Misso:
Robb Misso has worked in manufacturing for over 25 years and is the co-founder of the Austin Regional Manufacturer’s Association. As a founder and CEO of Dynamic Manufacturing Solutions, he has endeavored to bring previously outsourced manufacturing jobs back to the United States through a process DMS calls “reshoring.” Mr. Misso is a devoted husband and father of three.
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