NFIB

Reduce Employee Turnover: Know the Value of Your Employees
03/ 28/ 2002


Finding good employees has become a major challenge for small and large businesses alike. But keeping them on the job is perhaps an even bigger one. Employee turnover is the bane of many a business; it wastes time and can cost both money and customers. But take heart, even in an employee market, there are things business owners can do to reduce their rate of turnover. In today's workshop, Pamela Mills-Senn give tips to reduce employee turnover.

The Interview

It's impossible to place too much importance on conducting an effective interview and asking the right questions. It may be helpful to think of your best past and present employees. Consider the qualities and skills they brought to the job. This information can help you to construct effective and meaningful questions to put to applicants.

Remember that you are looking for indications that:

* The person can do the job

* They will fit into your environment

* They will act the way you need them to act

Take candidates step-by-step through their work and educational background. Ask them what they learned (from both their training and from the people around them) and what they did with this knowledge. Find out what some of their biggest challenges were. Ask them to describe their instructor or boss. Also query them on the type of environment they see themselves working in, what kind of manager or company is attractive to them, and what daily work activities they would like to be doing.

Some people like to conduct very difficult first interviews, to impress upon the applicant that the job is going to be a demanding one. Others ask interested applicants to think about the position for a day or two and then call them back if they still want it. These tactics can be good for ferreting out those whose interest is only fleeting. But whatever your approach to the interview situation, it is important to keep it consistent.

Money Isn't Everything

If you are a minimum or low-wage business (and simply cannot implement pay increases) try to look at others means you might have to allow employees to increase their incomes, such as commission programs, bonus plans, or performance incentives. If your business does not allow staff to supplement wages in these ways consider other alternatives like scheduling flexibility, discounts, or ongoing training. These benefits often prove exceptionally attractive to employees and can be great tools for reducing turnover.

Also try to:

* Show appreciation and recognition for hard work

* Keep employees informed about your business and its goals. Make them feel as if they are integral to achieving these goals.

* Conduct regular (and written) performance reviews. Make sure your employees know what you expect from them. Notice and praise any improvements in their performance.

* Even if you have limited financial resources, try to offer some form of medical benefits. There are affordable health plans for small companies and even minimal benefits are attractive to employees.

* Finally, know your employees' goals and keep in touch with these. Give career path advice. Keep them informed, educated, and challenged.

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