Edmonton Business Consultant | Minimizing The Effect Of Employee Turnover
A surprising statistic that business owners need to understand says Edmonton business consultant is that the average millennial employee will only stay with each employer 2.3 years. However, business owners often start to doubt themselves, their business or their vision when they lose their first couple employees. Business owners should there are many reasons why employees mainly the business, even if the relationship is extremely good. Even though business owners understand the cost that is involved to replace employees, they should always be ensuring there working towards increasing the retention rate of their staff. But losing staff is a natural part of business ownership, and when they work to minimize the effect that has on their business, they can ensure that their business does not struggle when it does happen.
Business owners often understand that losing employees is expensive because they have to find a new employee and then train that new employee and that cost of transition can be expensive. Edmonton business consultant says because of that, business owners should be proactive and set up systems in their business to minimize the effect that that transition has in their business. One of the first things that they can do is to ensure that they always have two employees who are familiar with any task that needs to get done in the business. The reason for this is no matter what employee leaves and when they choose to do so, they have another person who is able to handle that task. This way, a business owner never should feel pressured to hire any employee to fill the role, they can ensure that they take the time to fill the role with the right person.
However, entrepreneurs might understand that finding that right person can take a significant amount of time, so to address that Edmonton business consultant says entrepreneurs should always be recruiting in their business. By continually having potential employees applying for positions within the company, entrepreneurs can be ready sooner if the need arises to fill the position. By always be looking, entrepreneurs can ensure that there able to see far more people, and identify the ones that are going to be a good fit for the business.
One way that entrepreneurs can ensure that they are finding the right people for their business, is to incorporate the values of the business right into the interview process. Edmonton business consultant says the importance of this, is that if potential employees get a clear idea of who the company is and what they stand for, they can formulate an opinion if they want to work there. Business owners should see it as a success to deter people who do not believe in those values to not apply to work for their company.
While many entrepreneurs believe that they should try to avoid having staff leave at all costs, it is often out of their control. Business owners should be proactive in their business to ensure that they are setting their business up to operate no matter which employee leaves and that there always identifying people who will be a good fit in their business in case they need.
Even though the cost of losing an employee is significant says Edmonton business consultant, entrepreneurs often do not understand that there is an even higher cost for keeping the wrong one. A quote from Jim Collins, who is the author of six business books says 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 carrying extra weight, they eventually become frustrated.î Rather than trying to hold onto every employee they can, business owners should instead work to ensure that they are always recruiting the best possible employees they can for their business, so that they do not feel like they need to hold onto every single employee that they have.
One way that business owners can ensure that they are proactive in their business to be rewarding the good behaviour they see in their staff, that they want to continue, as well as addressing struggles from employees as soon as they see it, is to eliminate the annual reviews in favour of periodic ones. Edmonton business consultant says this is owners should set aside time every week to be having conversations with their employees. This way, business owners can congratulate hard work close to when they see it happening and hopes that they can encourage repeat behaviour. If an entrepreneur is waiting until the annual review to tell the employee all the times that they have done good, it is not reinforcing good behaviour soon enough. This also can help entrepreneurs correct problematic behaviours as soon as those problems service, instead of allowing an employee to struggle for year before telling them that they are not a great fit. By doing this, the periodic reviews become about encouraging the right behaviour and positive reinforcement.
Edmonton business consultant says another way that entrepreneurs can ensure they have the rights people in their business, is by understanding that salary is not the most important factor in attracting or keeping employees. People like working for organizations that they feel strongly attached to, and share the same values with. An example of this is when people volunteer for charities. They feel so strongly about that charities values, that they work for free. If entrepreneurs are clearly communicating their businesses values not just to potential employees, but to their staff, they can create an atmosphere of working towards the mission and vision of the company as a whole.
By attracting the right people to their company, and rewarding the great behaviours and hard work in the moment, business owners can ensure that their increasing the retention rate of the employees they want to keep.