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Hi, thanks for joining us again for another episode of ask [inaudible] CPA. Today we’re talking about, you know, uh, the clickbait was don’t keep employees forever, don’t keep them forever. Uh, that was a little bit of a clip, clickbait headline, but I have made here to, to break this down with me. Uh, so me, Edmonton Business Coach, you don’t have you seen or employers have some issues with their employees so far and uh, you know, we’re reviewing the paperwork and, and hours and yeah, it’s a never ending issue for sure. Uh, for entrepreneurs and business owners. So the quote that we have here is a Jim Collins, the author of a six business books, um, and he says, letting the wrong people hanging around is unfair to the right people as they never really find themselves compensating for the adequacies of the wrong people. Worse, it can drive away the best people.
Strong performers are intrinsically motivated pipe performance and when they see their efforts in PD by carrying around extra weight, they eventually become frustrated in the statistic that I have here is the average millennial employee. He’s the only staying with their employer for 2.3 years. But then the story that we have as business owners, they lose an employee or two and they start to doubt themselves, their processes or their vision for the business simply because they lost an employee or two. So maybe what do you think of the questions that these business owners should be asking? They should be asking what makes Lucy employees expenses? So what makes an expensive are a, you have to recruit a new employee, a, B, then you have to train the employee. Um, and, and that has a, you know, a specific cost to it as well that transition from one employee to the next.
Sometimes that can cost you some revenue and some customers. So, so those sorts of expenses, you know, they, they begin to add up. Um, and there can be, uh, uh, you know, uh, a certain, uh, uh, costs to transitioning in and replacing employees. Um, and this obviously it’s better to keep employees and it is to lose employees because it is, um, you know, sometimes it can be cheaper to keep the ones you have. Why is it keeping the wrong employees even more expensive than losing it? Yeah. This is where I say sometimes, uh, so we, we all know there’s costs, uh, for bringing another employer employee on and training them. But think about the bigger cost is if you have the wrong person working in that role and they continue to deliver a subpar performance day after day, month after month, year after year, what is that cost?
Um, so you know, we always talk about the cost of bringing on a new employee, but what’s the cost of having the wrong employee on, um, you know, it can be, uh, I would, I would think it can be, uh, multiplied times or time over time again for the cost of bringing on a new employee. Is it realistic to keep and then play for them for life? No, it’s not realistic. I think of all this, I tried to explain it to a business owner. You know, they’re, they’re, they’re really down about, uh, you know, not keeping an employee and they think that need to change and blow up their, their business system. Cause one person left and they said, you know, 50% of all marriages end in divorce, but they’re really upset that they lost one employee. Edmonton Business Coach, that’s just how it works. I mean, the average person is staying 2.3 years as employers, we need to do the things that we can to increase that retention rate.
But the same time we can’t do things that are going to encourage the wrong people to stay around to. Uh, there’s going to be a certain amount of transition that’s necessary. Why should you have two people familiar with any role in your business? You’re always going to have things, you know, people are going to come in and out of the business. And having two people familiar with that role is extremely important. And we get into that, you know, uh, um, kind of fallacy thinking that this person will never leave. Well that usually is the person who does leave. And a lot of times, you know, people think, well, why would they leave? I mean, they could get sick that he hit by a bus, their spouse gets transferred to a completely different city that you’re in. Um, you know, there’s a number of things that can happen that even if the relationship is absolutely perfect, it just is no longer, you know, a, a, a good fit anymore.
So you want to have two people familiar with any roles. So you always have that, okay, if this person is no longer there, this person can fill that role. And why should you always be recruiting as soon as you have staff, you know, staff do not leave when it’s good for the businesses. Generally, staff normally leave when it’s good for them. And that’s can be a really sobering fact for a lot of entrepreneurs and they normally have to see it and get burned by it once or twice. Edmonton Business Coach, you know, but they’re going to leave, you know, if they get sick, they get sick when they get sick. Um, you know, if they get pregnant, they get pregnant when they get pregnant. Uh, not based on, you know, the, the growth of the business, you know, their spouse gets transferred that has nothing to do with you or oh, or your business.
Um, you know, sometimes they just decide that this is not the right career path for them. You know what I mean? We had people, we had one recently, he, he, he wanted to be an accountant and, and now he’s running a retail store. And guess what? He loves us. He hired us as his accountant. Uh, but he, you know, he just, you know, felt that accounting wasn’t for him. And that’s going to happen for every business owner. Um, so you know, you, you always need to be recruiting because as soon as you need people, you always need people and you never know when you need the next one. How can you use the corporate values? Yeah. So you can use the corporate values because you go through the interview process in a lot of times, if you look up these, these questions, you can Google standard interview questions or you give me an example of you being a team player. Give me an example. You’re dealing with a difficult situation, but what’s important to the company? How do you communicate that to the average employee? You know, what’s, what’s important to you versus the things that are, are maybe not so important to de que. If you have that good list of corporate values, you can just go straight through it and then the employee gets a real clear picture of, you know, who you are and um, you know, uh, if they want to work here.
And why should corporate values be polarizing? Yeah. So some people,
well, they raped, uh, corporate values as if they’re a politician. They’re trying to please everybody. Don’t write your corporate values that way cause your corporate values should deter some people from working there. Some people should read the corporate values and say, this isn’t the right place for me. That’s a success. If you’re a corporate values are polarizing that, you know, just as many people say, I don’t want to work here as that. Say I do want to work here. Um, you know, you’re, you’re just getting the, the wrong people on the bus. So you want to make those polarizing values. The only full well that some people read them and say, this is not for me. Uh, because that’s going to help you get the, you know, the right people in. It’s just a really succinct way to communicate who you are, who you’re not, and let the employee know, is this still a good fit for them, right?
Not our salary and wages. The most important and keeping employees,
they are not the most important factor. Edmonton Business Coach, there’s a reason why, uh, you know, people can, you know, not for profits can survive. And you know, what if they were the most important factor, I would say, well, why isn’t everybody working in some form, in some, a work camp in Fort Mcmurry? Um, they’re not the most important factor. They are an important factor, but they’re certainly not the most important. You know, um, you know, the location and the work life balance and the yield simply the, the, the mission of what the company is trying to accomplish is probably the, um, one of the most single important factors is a reason why people do a lot of volunteer work. Uh, they’re not getting paid anything. Zero. Uh, but they believe in what they’re doing. Um, and that’s the reason why people won’t here. And employers often forget that, that they think it’s just the wage,
our annual reviews useful in keeping employees.
I don’t think they’re useful as I’ve progressed through my business career. You know, the, you go to that annual review, um, I would think that it’s a more periodic can view on the role that the average business owner, you only have so much time to do review. So you probably want to carve some time out each and every week and you can pull a couple of employees and you know, people who are, are, are really knocking it out of the park and you know, people who are struggling and get a couple of people in and you know, congratulate the ones who were doing well and that you’re congratulating them, you know, a short time after they’ve done something well as opposed to a year where maybe they did something well nine months ago, but it comes time to review and they’re kind of, you know, falling behind, you know, now where do you congratulated for it?
They don’t even remember. Edmonton Business Coach, or you might not even remember as the same thing if they’re, if they’re struggling, if they’re struggling on something, why are we waiting until the end of the year to bring that up? You know, let’s bring that up so they can have a shot of, of fixing it and uh, and moving that forward. You know, when it comes to just doing annual reviews, it starts to become more, uh, you’re doing annual reviews because you have to get them done. When you’re doing periodic reviews, you’re doing them because you’re trying to congratulate people for good performance as close to that good performance actually occurred or you’re trying to correct problematic performance as close to when that problematic performance became evidence. So it becomes less about getting the review done and more outcome oriented. You know, when we’re trying to, you know, encourage that positive behavior to keep occurring and we’re trying to prevent that negative behavior from ever occurring again and reinforce it as quickly as possible.
How often should you schedule time to do? I think you should schedule time for reviews every single week. Um, and if you scheduled time every single week, I think it really allows you to, especially on that corrective action, you know, people have that corrective action. Um, if you have it scheduled every single week, this no longer becomes another event just because something bad happens on, uh, on Wednesday. You don’t have to shut down business and reevaluate all your plans. You know, it was like on Monday I’ve got this time a set up in the schedule to do a little bit of a one on one review with this employee, we can bring them in, then we can correct that activity. And it’s the same thing. You know, someone really helped out on a, on a project that we can bring them and you can congratulate them as close to that project because then that uh, behavior positive behavior is more likely to occur again next week if it was reinforced.
Uh, you know, the quicker you can and the quicker you can reinforce that, Edmonton Business Coach, you know, positive behavior, the more likely it’s to reoccur and the quicker you can, um, you know, correct that negative avior the less likely it is to recur if you wait till the end of the year. I think it’s a, it’s a real uphill battle to correct and reinforce at that point in time. So I think that’s what we have here today. Thanks again for tuning in for another, another episode is always, if you have any questions or comments, please leave them in the section below. We’ll do our best to address them in future videos and please hit the like and subscribe buttons so we can continue to deliver you tips on how to beat the odds of business. Thanks very much.
