As an employee retention speaker and employee retention trainer, I often work with companies that know they have an issue with employee turnover, know what it is costing them and then don’t put resources to bear to solve the problem. Often that problem is costing them tens of thousands of dollars. Employee turnover costs you money on the bottom line. Normally, when an organization has an issue that is impacting the bottom line they put resources on the problem and allocate money to help correct it. Rarely do I see that same thought process with employee turnover. Recently, I was working with an organization that did. The results were amazing.
What the CEO did was quantify what employee turnover was costing the organization. Then, he decided to take half of the amount it was costing them to set up a special account that would use this money to bankroll the efforts they were taking to improve employee retention. He used this money to fund task forces, provide training and opportunity, improve communication, etc. Guess what happened. In the space of less than a year, the organization had cut its turnover by more than 50% and it continues to drop month after month.
This CEO is now plowing those savings back into his employee retention efforts and anticipates having turnover that is 80% lower than it was two years ago when he started the initiative. As he told this employee retention author, “It’s time to put our money where our mouth is.” This man isn’t a genius, but he knows unless your focus on an issue and intentionally work at solving it, you will probably not see things get better. The other thing he has found out is that life in his organization is a lot more pleasant since he took this approach. Although he is a bottom-line guy, he realized the reduction in stress caused by poor employee retention has also improved the quality of work life for everyone because they are not dealing with the holes caused by employee turnover.
When I present my program “Making Millennials Great…5 Pillars for Building the Next Generation” with my colleague Randy Willinski, we tell our audience that it’s time to stop complaining about millennials and do something about it. Well, employee retention is the same way. It’s time to stop complaining about poor employee retention and do something about it. And, the first thing you need to do is act like the CEO described above and put your money where your mouth is!