Stop Wasting Money on Constantly Hiring & Training New Team Members
In today’s episode: The loss of employees can be tough on your business. Constantly hiring and training new folks can be costly and time consuming. In this episode, we walk through 7 reasons your employee turnover might be high.
Here are the Show Notes from the Episode:
**keep in mind that show notes are raw and only highlight what is in the episode. Listen to the show for the full content**
Episode 32 – 7 Reasons Your Employee Turnover Might Be High
The Local Small Business Coach Podcast
Let’s jump into the show. I want to dedicate this entire week’s worth of episodes to your employees or as I like to refer to them your team. Now you may have heard some places are no longer calling them employees but rather team members to help promote the whole team concept vs the individual contribution. Ultimately it is up to you if you want to refer to them as employees or team members, the important thing to remember is that you respect them and you take really good care of them. They will not be hurt by one name or the other but they will not accept being disrespected.
The reason this even became an issue in the first place, was to drive that “team” feeling as I mentioned. Then for some reason, the word “employee” became a negative term. Folks felt they needed to be a cool kid and join the crowd with this new term. To move away from the employee / boss combo vs the team / leader combo that seems more positive.
But as I mentioned, most folks don’t care if they are treated right. If they aren’t treated right, then they will leave. Which we will get into in a few moments. But ultimately, don’t get hung up on this. Go with what feels right. But like I said employee, team member and probably a few other ones that have been floating around are all fine. More likely you are going to hear me float in between the two words employee and team member. So don’t get hung up on it.
For today’s topic I want to discuss 7 Reasons Your Employee Turnover Might Be High.
I think we can all agree that employee turnover can kill you. Not only due to the time it takes to find the right person, but also the time it takes to train them and for them to learn the job.
On our next episode, we will go into more detail on how turnover is costing you thousands of dollars each year, but for today, let’s take a look at 7 reasons why folks decide to leave you in the first place.
- You Hire the Wrong People
Too often we hire folks that fill a spot or a need and not necessarily the best qualified person. I’ve hired thousands of people through the years and I can tell you, there are a lot of people that interview well but are nothing like the person that shows up to work. It takes time to spot the warning signs that might show up.
For example, if you are interviewing someone and they just roll their eyes or get annoyed at the interruptions that might happen, then how will they deal with the interruptions they are bound to get during the normal business day.
Now don’t get me wrong, I prefer interviews in a quiet setting but the reality is, many of you are doing these interviews in your lobby.
Also, ask questions that require more reality based answers vs theory. Everyone will tell you they are great with customers. They would be stupid not to. But have them tell you how they have dealt with folks in the past. Great customer service they have already given. If you hire kids for their first job, you can still talk about how they handle helping people. Do they help folks at school, at church, in clubs, at home?
And NEVER EVER EVER hire people because they fog up the mirror and you are desperate. You will pay the price in the long run.
We will do future shows on hiring but you get the idea.
- Lack of Training both at hire and ongoing
Do you hire people and throw them to the wolves? Or do you have an official onboarding process you use? Do your new folks go into a training program or mentorship to learn the job you hired them for? Or do you use the “sink or swim” method?
But training doesn’t stop with bringing them on board. Training means you have an ongoing program to help people get better at their job. When a new task is introduced, do you teach them the expectations and give them the tools to do it? Do you know most people fail in their job due to lack of training or at least poor training?
Either they will quit due to being frustrated or you will fire them for doing their job poorly.
- Treat Them Poorly
This one is a no brainer. If you treat your people poorly, they will not stick around long. If you are rude to them or talk down to them they will not stick around. If you don’t live up to your commitments, they will not stick around. If you are rude and disrespectful, they will not stick around. Don’t be one of these places to work. No one will stick around.
- Don’t Feel Valued or Listened lack of Recognition
Even if you are nice to folks, if they don’t feel valued they will do the job but their heart will not be in it. Why would they. If they don’t think you care about them, why should they? Lack of recognition plays hand and hand with this one. It is part of being appreciated and feeling valued.
A core human need is to feel this value. Want to hear a crazy statistic? More people quit due to feeling they are not valued than those that quit due to feeling they aren’t paid enough! Bosses think people quit due to pay and Employees say they quit due to this lack of feeling appreciated.
- Lack of Opportunity / Future
Now this one is a little harder for local small businesses. If your structure is you as the leader and 1-5 employees, you might not have other leadership roles people can grow into. However, don’t underestimate the key word, opportunity. Opportunity means different things to different people.
For example, you might have different roles within your team. The employees might see some positions as being more valuable than others. For example, when I had my ice cream store, they kids couldn’t wait until I taught them how to make cakes. In their eyes, you had moved up if you got to learn how to put a border on a cake. In my eyes it was no big deal, but you needed to learn your other roles first. By creating this order if you will, it was telling them, the next level was to learn the cakes.
So don’t underestimate what your team feels is the opportunities. Plus, you can always create the graduation of jobs so they always have something to strive for.
- No Connection to the “why” or “Vision” of the Company
Sure you might have a plan for your company. You might know what your goals are for your business. But are you sharing these? This is an interesting one. I’ve seen leaders afraid to share their goals with their team. I’ve always found that fascinating.
You team needs to know what they are “fighting” for. They need to know the “why” It can be something as simple as… To have the #1 fast food joint in town. Or to have the best customer service in town. Give them a reason to be passionate about the business. Heck, let them be part of the goal. At a staff meeting create one as a team. Give them a connection to what you are accomplishing and what you need their help with.
- Leaving for Other Opportunities (not always bad thing)
In days of old, people tended to stay with a place of employment for years. Not so much today. Today businesses and jobs are seen as a revolving door. How long they stay, depends on how long it takes for them to get out of the door. They might leave for more money, new opportunities and they might be solicited by other businesses. Remember, I encourage you to “steal” good folks from others so of course people will do it to you as well.
But you also might lose folks for good reasons. They go off to school or they go pursue their dream job. I remember one year when I lost all 3 of my shift leaders in a 2-week period. All three were for exciting things for them, but it killed me at the same time. One went off to college, one got a job in their dream field and the other one got a chance to make $5 more with a new opportunity. Was I mad at them? Heck no, I was excited for them. Was I panicked for me? Absolutely! LOL
- BONUS – Just not fun
Ok, I’m going to toss this one in. Back in the day, it was never about having fun at work. However, we are foolish not to realize that today’s workforce is expecting to enjoy what they do. Especially if you hire anyone under 21. They want to have fun. Now, I’m not saying to have a pizza party every Friday night and put video games in the breakroom, but you do need to laugh and enjoy each other. You need to encourage and foster a happy environment.
Now, while those under 21 are expecting this, don’t get me wrong. I don’t want to work for a place where they don’t have fun? Heck I’m 50 and I believe you can have fun at work through laughter and truly enjoying each other. Don’t you? So why settle for less?
So let me ask you… When you think about the last 10 people you lost on your team, did they fit into one of these reasons? Odds are 90% did. So the question becomes, are you going to go back through each of these 8 items and put things in place to help reduce your turnover? I challenge you to pick your top 2 reasons for your loss of people and figure out what you will put into place to reduce the turnover you are experiencing.
For example, if you recognize that you have been hiring poorly, then what will you do to hire better? Will you ask more probing questions? Will you check their references? Will you interview 5 people for every position so you get a variety to choose from? What will you do?
Well that wraps up our look at 7, rather 8 ways you are having employee turnover. Once again the top 8 ways small businesses are losing their people are:
- Hiring the Wrong People
- Lack of Training at Onboarding & Ongoing
- Treat them Poorly
- Don’t Feel Valued or Listened lack of Recognition
- Lack of Opportunity
- No Connection to the “why” or “Vision” of the Company
- Leaving for Other Opportunities
- Not Having Fun
Don’t forget to pick those top 2 and start making a plan to attack!
Don’t forget, In our next episode, we will dive into why this is so critical that you do this. We will take a closer look at how your turnover might be costing you thousands of dollars a year. By the way, this includes those of you that hire temp help as well. So, don’t’ forget to hit subscribed so you don’t miss our next episode or any episode for that matter.
Meanwhile, I wish you the best in your business and remember: Great Customer Service, coupled with Great business practices will set you on the path to Great Profits!
Bye for now…..
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Today's episode, as well as all of our episodes, is brought to you by trainingforlocalsmallbusinessowners.com. Where we provide free tips, tools and resources for your local small business. So whether you are just starting out or you've been in business for a while and want to learn more ways to increase your profit, boost your sales, improve your processes and develop stronger teams then head on over once again to trainingforlocalsmallbusinessowners.com..
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See you on the next episode!
Two Great Books to Help You With Your Small Business:
Highly Recommend all Local Small Business Owners Read the eMyth by Micheal Gerber. You will learn some critical things about running your business.
The second book is one I wrote based off a popular example I always use when folks are trying to understand their role as a leader with their people. Check it out.