Prepare for the Turnover Tsunami
The latest employment news from the Bureau of Labor Statistics reveals a surprising trend that could be very bad news for small-business owners, depending on whether you're trying to hire employees or hang on to the ones you have.
More Americans are Quitting Their Jobs
Still not convinced that your employees are eager to move on? Consider this surprising news: More people quit their jobs in February, March and April than were laid off, according to the Bureau of Labor Statistics. The last time resignations outnumbered layoffs was late 2008. Almost 2 million people quit their jobs in April (the highest number in over a year); 1.75 million were laid off (the lowest figure since January 2007).
Although hiring has been flat at about 3.3 percent since the start of the recession, the increased resignations show employees are feeling confident about finding better jobs. If "overworked, underpaid and stressed out" describes your staff right now, you'd better make some changes before it's too late.
Burnout rates are among the highest ever recorded.
Burnout leads to poor performance, negative attitudes toward the company and high
levels of turnover.
1. Accounting, clerical, and office positions = Burnout ratio of 8 to 10%
2. Customer Service, Call Center, Inside Sales = Burnout ratio of 22 to 28%
3. Commission Sales and Outside Commission Sales = Burnout ratio of 36 to 41%
A recent study by Right Management, and one confirmed by other studies indicates that 60% of your staff may seek out new jobs . . ..and soon. The best and the brightest see the upswing in employment as an opportunity to make a career leap.
They are resentful of pay cuts, benefit cuts, and layoffs while they observed senior management as "not feeling the pain."
Unfortunately for your Company, just at the time when you need loyalty and dedication from your salespeople, managers, and experienced staff your operation may be thrown into a turnover tsunami that will create a situation where your more astute competitors can step in, grab your best people and leave you floundering just at a time when you need to increase sales and profits.
CNN Money.com reports that In March of this year more than 162,000 private sector jobs were added which is the largest rise since March of 2007. Although the figures go up and down every month, it seems there is light at the end of the recession tunnel. Many smart companies are taking advantage of the huge talent pool out there to not only hire but to upgrade the caliber of their staff.
Employees Work Longer at Home
We refer to a new study from Brigham Young University. The study tracked 25,000 IBM employees to find their "tipping point" the moment they felt that work was interfering too much with their home life. For employees who worked a regular office schedule, the tipping point was 38 hours a week. But employees who had a flexible schedule and were able to telecommute could work 57 hours per week before they felt the conflict.
One change you could make? Offer flextime to your staff and/or the choice to work from home if not every day, perhaps two or three days a week. Not only will they be happier with their jobs, they'll also be willing to work longer hours. The takeaway? Creating a remote working policy not only saves you (and your staff) money, but it also makes your workers happier and more productive. Sounds like a no-brainer.
How to sidestep the Tsunami
1. Move quickly to build a communications link with your staff. Now is not the time for discipline or performance appraisals. You want to avoid a mutual rebuking session at all costs.
Right now - set up a structured "Coaching" program. Administer the "Corporate Coach" assessment to everyone in the company starting from Sr. Management on down.
Coaching improves the communications link between management and employees. It makes employees feel valued and gives them time to look at their performance objectively. This is the most effective way to keep the best and brightest with you and improve performance in everyone else.
Yes, everyone would like more money and more benefits, but studies have repeatedly demonstrated that your employees want to feel as if their hard work is valued, and they are also considered to be an important part of the organization. Building a "Communications Link" through structured coaching achieves this goal.
2. Hire new talent.
Find people who will take an interest in your company. To do this most HR departments should throw out their current procedures. No long winded interviews, No repeated visits. When the right fit is found - hire them. Anyone who is willing to spend two weeks answering questions and going through numerous interviews is probably not worth your time anyway.
The most effective HR people use a 10 minute phone interview and then administer an all encompassing assessment like the Analyst-Link, or the Basic or advanced SFA (Success Factor Analysis). These tools rate and rank suitability to the job, measure the ability to work with others, and examine behavioral and motivation traits. Best of all using a pre-hire assessment allows you to eliminate tedious multiple
interviews and avoid the expense of transporting candidates. With any new-hire interview the assessment acts as a third party arbiter. Coupled with the resume' and preliminary interview, a viable candidate is assured.
Are you attuned to your employees state of mind? When was the last time you asked their opinion about the Company and the Work Environment?
Well, that's it.
Your staff needs assurances now. Will you sidestep the turnover Tsunami- or- be engulfed by it?