Edmonton Business Consultant | Is Staff Turnover Avoidable
Many entrepreneurs believe that they should avoid replacing employees at all costs says Edmonton business consultant. And while there is a higher cost associated with hiring new employees, business owners should not work to keep their employees at all costs because of that expense. Business owners should realize early on in their business that as long as they need people to work in their business, having to replace those people is an inevitability that they cannot avoid. Instead of wondering how to avoid it and risk keeping the wrong employees in their business, business owners should instead minimize the effect that transition will have in their business, and work to increase the chances of finding the best employees possible.
The first thing that entrepreneurs should realize, is that keeping the wrong people can do far more damage in their business then the cost associated with bringing new staff on. Jim Collins says this best, when he says ìletting the wrong people hang around is unfair to the right people, as they inevitably find themselves compensating for the inadequacies of the wrong people. Worse, it can drive away the best people. Strong performers are intrinsically motivated by performance, when they see their efforts impeded by carrying extra weight, they eventually become frustrated.î Not only should entrepreneurs work to ensure that they are looking for people at all times, but they should be looking for the best people as well.
Edmonton business consultant says one of the best ways that entrepreneurs can ensure that there are always being prepared to replace staff that may decide to leave or they may have to replace, is business owners should never stop looking for good people. Since entrepreneurs can never predict when they are going to need to replace staff, they should never stop looking. The number of people they need to meet in order to find the right ones can be a large number, business owners can maximize their efforts by continually looking. If business owners wait until they lose someone in order to start looking, they could be missing out on opportunities, and feeling pressured to find the right person and end up hiring the wrong one.
It is also important that business owners are looking for the right fit for their business. By communicating the values that the company has, business owners can be certain that the people that share those values will opt to apply for the job, while the people that do not agree with the values will decide to keep looking elsewhere. By doing this, business owners can ensure that there keeping their sites on all of the people that are good fit for the business, and that can help them make the difficult decision of who to hire in their business.
My understanding that it is not a realistic goal to keep all of their employees for life, Edmonton business consultant says business owners can work to minimize how much it affects their business to have to replace someone.
one of the misconceptions that entrepreneurs have when staff inevitably Leeís their business is that there something wrong with themselves or their business, and start doubting what they are doing says Edmonton business consultant. However, business owners need to realize that losing staff is an inevitability of owning a business. For example, the average millennial employee only stays 2.3 years with each employer. Reasons, why employees might leave the business, have nothing to do with the organization itself is much as it has to do if employees themselves. If they get sick, move out of city, or retire there is just some of the many reasons that employees might have for not working in a business any longer. The sooner employee realizes this, the sooner they can work to ensure that they can minimize the effect that staff turnover has in their business, and look for the best people they can.
While many entrepreneurs understand that there is a significant cost to replace employees that they have lost, it is possible to minimize that cost and to that effect in the business. Essentially, the two reasons why a costs employers money to replace staff is that they have to recruit the employees and then train them. Edmonton business consultant says that business owners can minimize the effects that recruiting new employees have on the business, by continually recruiting. If business owners wait until there is an opening in their business to start looking, they have wasted valuable time. By ensuring that they are holding regular interviews, business owners can meet the right amount of people that it takes to find one great employee.
Another impact on a business is training that new employee, and business owners can reduce that impact on their business by ensuring that at all times, their business has a minimum of two people who are familiar with every role in the business. That way, no matter what employee leaves, a business owner can be certain that operations in their business can continue smoothly. Because of that, a business owner is less pressured to fill the role in order to train that employee to do the job that is needed. By doing these things in their business, entrepreneurs can ensure that there minimizing the effect that losing an employee and hiring a new one will have on their business.
Business owners should understand that it is not a realistic goal to keep an employee for life. Edmonton business consultant says it is an admirable goal to be proactive in their business to increase the retention rate whenever possible of the great employees that they have, and at the same time ensuring there are not doing things to encourage the wrong people to stay. While this is great, business owners need to understand that there is a certain amount of transition that is perfectly normal in business. By understanding this, business owners can be prepared to one a great business even if they are looking for great people.