Edmonton Business Consultant | Minimizing Staff Turnover
Business owners often understand the cost of losing staff in their business says Edmonton business consultant. Because the cost of replacing those employees can be high. They have to recruit new staff and train them and those expenses add up. However, business owners need to understand that staff turnover is a regular and normal part of business ownership, and business owners should approach staff from two ways, increasing retention rate of staff, while always be attracting great new staff members.
Edmonton business consultant says it is extremely important that business owners do what they can to increase the retention rate of keeping employees. Business owners can do this by conducting periodic reviews instead of annual ones. The reason why this is important is that annual reviews are not useful when businesses try to keep staff. It is far more effective to be having regular conversations with staff members, not only to correct problematic behaviour and addressing employees that are struggling but so that they can also congratulate hard work and reward good behaviour. This way, an entrepreneur can try to increase good behaviour to happen more often, and help out staff that are struggling before they become problem employees.
Even no matter how valuable a staff member is, and what a business owner might due to keep them, business owners should understand that employees leave businesses all the time For a variety of different reasons. Employees might get sick, have spouses transfer to other cities, become pregnant or retire. Matter how positive the relationship is between the staff member and the entrepreneur, business owners need to understand that there people may leave at any time in their business. Rather than taking it personally, business owners need to understand that this is a normal part of entrepreneurship, and they should be proactive to ensure that they minimize the effect of an employee leaving on their business according to Edmonton business consultant.
When my that entrepreneurs can ensure that they have minimize the effect of an employee leaving in their business, is by ensuring that no matter what the employee does in the business, there is somebody else that knows how to do their role. That way, no matter who leaves, when or why a business can continue to operate easily. That helps entrepreneurs not feel pressured into hiring the first person that is available, that business owners can take their time to ensure that there hiring the right fit for their business.
It may be very easy for business owners to take employee attrition very personally, however business owners should understand that as long as they were dealing with people, people are going to be unpredictable. By ensuring that they are rewarding good behaviour often, and cross-training staff members whenever possible, entrepreneurs are prepared to replace people, even while trying to ensure that they stay. The cost of losing an employee does not necessarily have to be as high as it could, as long as business owners are prepared.
Entrepreneurs should understand that you even though there is a high cost to losing employees, attrition is unavoidable says Edmonton business consultant. And if business owners are letting the wrong people continue to work in their business because they are afraid of the cost of losing employees, they can end up costing their business a lot more because bad employees can drive away good ones. Jim Collins, the author of six business books has weighed in on the subject by saying, ìletting the wrong people hang around is unfair to all 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, and when they see their efforts impeded by extra weight, they eventually become frustratedî. There is a higher cost to keeping the wrong people in their business. By not being afraid to lose people, but also by working to attract the right ones, business owners can ensure that they have the right people in their business at all times.
One way that business owners can ensure that they have the right people in their business, is by communicating their values early on in the employer-employee relationship Edmonton business consultant says as early on as the interview process. By clearly communicating the most important values that the business owner has, the potential employee can start to develop a clear picture of who the business owner is and what the business stands for. They can get a clear understanding if this is an organization they want to work for. To that end, business owners should understand that corporate values do not need to be universally appealing, and it is better if they are not. If they do not appeal to everyone, it will allow the people that do not share the same values to keep from applying in the business. Business owners should consider this valuable, do not have people who do not value the same things from applying.
Edmonton business consultant says this is a great demonstration of the fact that salary is not the most important factor in attracting or keeping employees. For the same reason that people tend to work for charities, is because they appreciate the values of the organization, people are more likely to stay with the company that they feel connected to the values of far more than salary. If salary was the most important factor, there be a lot more people working in work camps up north.
Entrepreneurs can ensure that there attracting the right people for their business, so that all the employees that they have working, believe in a common goal. However, business owners should also understand that employees are going to leave regardless of how good the relationship is in the business. By always looking for great people, is owners can minimize the impact that losing staff have in their business.