Friday, April 11, 2014

Why Employee Turn-Over is B-A-D for Business

Employee turnover is said to cost a business $100,000 in loss from the transition, which is one of the reasons I've always gone out of my way to treat my team with respect and loyalty. When you find an excellent team member you do not want to lose that person. Always be respectful and lead with loyalty and kindness and understanding so your team will WANT to work for you. As noted, loss on average per employee is $100,000, which for a small business is costly.

Let me give you an excellent example: when I worked in corporate I worked very loyally for my employer for 14 years. Pay raises though were always a bone of contention. Existing inequities between the executives in the company for reasons I won't share existed. As a loyal and hard worker, every time it came time for a raise it was a hard-fought battle with lots of justifications to go round. At the end of the day, I often went 2-3 years without even a cost of living adjustment. Finally in the last year I asked for a very small raise which amounted to nothing more than $150 a month. It had been the usual two-year deficit, and once more I was told no. Well, I had a feeling this might happen. I was tired and had given my lifeblood to the company. As they said no I said good-bye.

This is called short-sighted management. After I left reality-check 101 set in, and they soon realized the workload I had carried when they had to replace me with three bodies. How much do you think it cost them not only in my turnover but in paying three people instead of one? Do you think it was worth saying no over $150 a month?

That personal case study is a reflection of a corporate mentality that doesn't think about negative results only short-term gains. Sometimes you have to think big picture and be careful. Short-term gains can turn into long-term losses. So when you have a great employee who willingly gives his or her lifeblood to your success, don't be petty. Always take care of your people. You don't they won't take care of you.

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