Retention Continues to be a Management Issue

Retention continues to be a management and not a human resource issue!  Below is a true story that was related to me by one of my clients in Overland Park, KS.  This is shared with you with their permission.

My “client” has a high end greenhouse operation.  They hired a young lady “employee” on a part time at minimum wage.  The employee had lost her job, was a single mom, homeowner and been in the community for several years.  She took the job out of desperation, to feed her family.

The client loved her work ethics, on time always there reporting, and first to offer to help.  The employee was on a hunt for a full time job and met with the client owners, explaining her dilemma.  The employee explained that she really loved working there.  She enjoyed the co-workers, good working environment and was very comfortable but just couldn’t make ends meet.

So the client said, let us think about it and we’ll give you an answer tomorrow.  Tomorrow came and they offered her full time work, and a whopping .25 per hour raise.  TWO WHOLE DOLLARS PER DAY!

3 days later the employee gave a two week notice as she had interviewed and was offered an administrative position for $3.50 more per hour.  The client responded by saying they would match it if she would stay, but the die had been cast and she turned them down.  One well trained good worked gone and it didn’t have to be.

In discussing this with the client they revealed to me that they pay a temp agency almost $13.00 per hour for untrained help for a day or two of “warm body” work.  I asked if they didn’t see the error in their judgment.  Their turnover rate is very high, they don’t keep but a very few employees as core employees.  The cost of training and retraining far outweighs the value of paying people a fair wage for a fair days work.

I asked, “…if you were willing to match the offer, why didn’t you just make it in the first place?”  Answer, “…because we thought she’d stay and we’d save the money.”

This scenario plays itself out all over the United States in the workforce.  From a financial standpoint this position is truly illogical.  From a moral standpoint, it’s deplorable.  And from a morale and retention standpoint, it’s the kiss of death.  Retention continues to be a management issue.

Regards,

George F. Mancuso, CPC

Employee Retention Specialists and President

Client Growth Consultants, Inc.

Grinnell, Iowa

Related articles

• Why average retention rates can lead to 50% error in CLV (custora.com)
• Customer churn and Retention (customerthink.com)

Recruiting and Retaining the Best People

In my Employee Retention consultancy, I am constantly asked about employee retention and recruiting the “best” people.  Thus, the subject for this week’s forum.  I certainly hope you enjoy this, find it interesting & educational and share with your management staff. GFM

 

Because so few corporate leaders are fully cognizant of their predicament, executives who DO prepare for the new operating environment will lead their organizations to a bright future; those who ignore the threat, risk dangerous vulnerability.  With these thoughts in mind, I have six suggestions for owners and managers with regards to employee RETENTION and RECRUITING.

Suggestion # One:  IF YOU PAY PEANUTS, YOU GET SQUIRRELS!  The old expression that “you get what you pay for” is never truer when it comes to employees.  To get above average talent, service and productivity, you must consider pay grades that are above the average for competitors in your marketplace.  It is ludicrous to think you can get a world-class staff by paying below average wages.

Suggestion # Two:  PEOPLE JOIN A COMPANY BUT THEY LEAVE A BOSS!  When I ask members of a management team why they have heavy turnover, the answers are usually the same: no recognition, no promotional opportunities, no training, work not appreciated, lousy benefits, too much stress, overwork and of course the most popular, a better opportunity for more money.  What amazes me is all of these excuses are fixable by management, but they go a non-response mode with a complacent, “oh well.”

But in reality the number one reason IS LOUSY MANAGEMENT OR SUPERVISION!  If the basic supervisor-employee relationship is not good, employees leave with dispatch.  Also a problem that is fixable.

Suggestion # Three:  LOUSY COMPANIES CONDONE LOUSY MANGERS AND GREAT COMPANIES FIX LOUSY MANAGERS!  Executives and owners often confide in me, “George, it isn’t easy”.  Just because so and so is a lousy manager, he/she means no harm.  OR He/she has been with me for so many years and is a good person.  OR my all time favorite, he/she is my wife’s brother.

Loyalty is one thing but if you have a supervisor or manager that continually drives away good talented people, you have ONLY two choices:  Fix him/her by getting them into a training and/or self development program or GET THAT PERSON OUT OF MANAGEMENT!

Suggestion # Four:  SOME PEOPLE JUST SHOULD NOT BE WORKING FOR THIS COMPANY!  Have you ever thought of someone in your organization that you would gladly fill out an employment application for them for ANOTHER company and then offer to drive them to the interview?  Whenever I am asked, “what is the fastest way to turn around low morale” my first and immediate response is to get rid of the “turkeys” in the organization.  Your company should be staffed with EAGLES not turkeys.

Suggestion # Five:  RETENTION IS A LEADERSHIP PROBLEM, NOT A HUMAN RESOURCE PROBLEM!  Leadership, whether strong or weak, ultimately determines the overall retention rate of your company.  Retaining GREAT employees is far too important to completely delegate to mid-level managers or human resource managers.  Retention must be front and center within every strategic initiative, expansion plan or turnaround situation that you face.  Remember, leaders are not necessarily good managers and managers are not necessarily good leaders.  It doesn’t have to be that way, but most times it is.

Suggestion # Six:  HIRE A GREAT OUTSIDE GROWTH CONSULTANT TO HELP YOU!  If you do not have internal staff with a learning curriculum, spend the money and hire an outside consultant to help you design a plan, train all trainable employees and get over your high employee turn over.  It will be the best money you ever spent.  Third party influence many times works much better than hearing from a peer or upper management person.  Employees WANT to learn, WANT to grow and will reward you when given the opportunity to do.

Remember, IT IS VERY DIFFICULT TO SOAR WITH THE EAGLES WHEN YOU ARE SURROUNDED BY SO MANY TURKEYS!

Regards,

George F. Mancuso, CPC
President and Employee Retention Specialists

Client Growth Consultants, Inc.
Grinnell, IA

Talent Asset vs. Tenure Asset – A Lesson in Employee Retention

 Talent Asset vs. Tenure Asset – A Lesson in Employee Retention

“…the only thing worse than an employee who quits is an employee who quits and stays!”

Talent and Tenure are not necessarily two assets that go hand in glove.  Tenure many times is associated with loyalty and Talent many times is associated with achievement, maybe even over achievement.

Which would you rather have in your organization?  A long time employee who is an under achiever or a less tenured employee who always goes the extra mile to exceed goals and expectations?  Under achievers wear different looks, and they include complacency, lack of performance, pot stirrer, a thorn to everybody around him/her.

When it comes to retention, please allow me to make this bold statement that I hope you will digest as it pertains to yourself and/or your organization;

“IF YOUR ORGANIZATION MISINTERPRETS OR COMPLICATES TALENT ASSETS AND TENURE ASSETS AS ONE, YOU ARE PROBABLY ON A TROUBLED PATH IF YOU HAVEN’T ALREADY TRAVELED IT.”

Valuing achievement, dedication and contribution over just valuing tenure is the message I’m trying to instill in you today.  And please understand that I’m not against Tenure Asset employees as long as their contributory factors remain as high as those of Talent Asset employees.

“TENURE AS A BUSINESS PRACTICE IS A FLAWED BUSINESS PHILOSOPHY!”

    a.)   Tenure Can Overpower Talent:  As an example, when a company promotes based on tenure instead of merit/performance/achievement etc., the company loses its ability to influence the intrinsic talent within.  Morale is affected, performance is affected and certainly turnover is affected.

    b.)   Tenure Impedes Change and Destroys Innovation:  The concept that “we’ve always done it this way takes over”. Complacency breeds complacency.  Doing it the same old way just because we are comfortable in doing it the same old way is part and parcel the crux of this Flawed Business Philosophy!

    c.)    Tenure Breed Destruction and Complacency:  When I view an employee who has been on the payroll for a very long time and mostly in the same role or capacity, I find that underneath the exterior is an employee who does mediocre work.  Even though their exterior “look” is that of an innovator, change maker, goal achiever, the underlying fact remains that most are just marking time.

So let’s cut to the chase…an employer needs to maintain a defined path or even prejudice towards performance.  Reward talent, initiative, innovation, loyalty, attitude, creatively, work ethic, contribution and leadership ability.  DO NOT reward Mediocrity, Complacency, Lip Service, Lack of Drive or Determination.

As an Employee Retention Specialist, I can help your company get onto the right track.  Employee Retention is all about people and people is what I do best!  Tenure Assets can be rejuvenated and Talent Assets can be directed to achieve even great levels of expectations.

So if you don’t plan to act upon this newsletters message, then kindly ask yourself, what is the real cost to my bottom line?

Regards,

George F. Mancuso, CPC

Employee Retention Specialist

Vision - Mission - and - Values

VISION, MISSION AND VALUES are important concepts that a sales professional should be very familiar with in order to better serve their clients.  Do you agree?

The "VISION" is essentially like painting a vivid and unique picture of an organization's future, focusing specifically on what the organization ideally wants to accomplish long term; what it wants to ultimately become. Its ultimate goal is to create a sense of shared purpose, motivation, and drive to achieve between the organization and its employees. Its resonant impact should be reflected in the way the board governs, the way the CEO manages, and the way people work.

The "MISSION" describes why the organization exists. It describes its fundamental purpose and core business for the benefit of its stakeholders and society as whole. Focused on the present, it emphasizes what the company currently is and not what it is striving to become.

The "VALUES" are the organization's key guiding principles, fundamental beliefs and expected behaviors. "Values" help to create a cohesive corporate culture and are critical to supporting the organization's mission and ensuring that its vision is ultimately achieved.

As sales and management professionals, it is strongly recommend that we are aware of and fully understand the expressed vision, mission and values of our clients. It will provide a helpful reference point in general discussion, making proposals, and recommending actions. 

Suggestion: Visit your clients Web sites in order to locate their vision, mission, and values - many times they are posted for the public. Evaluate whether the services and recommendations you have provided to the client are aligned (and even consider re-shaping them, if necessary). Also, note if your own firm's vision, mission and values are in alignment with your client's. If not, an additional discussion with your client might be in order.

Regards,
George F. Mancuso, CPC
President
Client Growth Consultants

Related articles

• Create Your Mission, Vision And Values Statements (brighthub.com)
• So, You've Got A Vision. Now How Do You Communicate It? (bigthink.com)

How Can I Fix Marginal Behavorial Traits in a Good Employee?

QUESTION:  I have a key employee that pays a great attention to details; he has a sense of urgency and seems to display a commitment to getting the job done.  But he is somewhat of a problem in his behavioral traits that rub other employees wrong,(we get complaints all the time)  thus has affected our retention ratio.  How do I help him change his behavioral problems to be a win/win?

Marvin Haines, CEO of a Regional Construction Firm

Don’t sweep this under the rug
Just because one person seems to be an outstanding employee and you view his/her contribution as positive, it doesn’t mean that it is not costing you thousands of dollars in the long run.  When I hear about retention ratio falling off the charts, this equates to huge cash deficits to the bottom line.  So don’t be complacent, deal with this head on.


Get the facts
Sometimes irritating behavior is under-reported by co-workers; more often, the story grows in the telling. One of the worst things you could do is to confront an employee with bad or insufficient information. Doing so can has a negative impact on the employees, their perception of you and your organization, and negates the effectiveness of the intervention.

Get at least three specific examples of each problem behavior (this is generally an ample number to convince the employee that a change is warranted).

Observe the behavior yourself, if possible. This makes it easier to describe the conduct and its impact when you speak with the employee. The employee will also be less embarrassed than if you have only tales brought to you by co-workers. It's one thing if the boss sees an opportunity for you to improve. It's another thing entirely if your co-workers are talking about you behind your back.

If it is impractical for you to see firsthand what's happening, then compile specific, detailed observations (day, time, specifically what happened, etc.) from co-workers to reinforce your coaching.

Prioritize and be patient
In most cases, such as with the employee you describe, there's more than one distinct behavior to be changed. Only so much can be accomplished at one time. Trying to deal with too many problems at once will only increase frustration for everyone and may actually undermine your coaching effort.

Before meeting with the employee, decide which behavior(s) you will work on first. Prioritize the rest and plan to work on each over a reasonable period of time. The employee above, for example, could easily be coached to hand off work to the appropriate person. Learning to get to the point quickly when sharing information may take more time and might be better done after you've had an initial success with the employee.

Determine what you want
Telling someone what they are doing wrong is only part of the solution. Tell the employee what you want clearly and in enough detail that they will get the picture of what desired behavior sounds and looks like. It is best to share several specific examples of each desired behavior with the employee.

Tell the employee above, for example, that they should typically wait at least a full workday before repeating a request for information, and not to go to other employees unless the first person can't help. This is a specific, measurable and easily understood solution to the last issue mentioned.

Meet with the employee and plan positive reinforcement
Meet privately with the employee to discuss the needed change, the advantages to the employee if changes are made, and the specific behaviors you want to see—and to develop a plan to monitor those changes as they occur.

Working with the employee, develop a plan to ensure that he or she gets immediate feedback when undesirable behaviors occur, as well as positive reinforcement when improvement happens. Since you may not always be available, the employee might even consider asking a co-worker for help in this respect. You should plan to meet with the employee at least weekly to discuss progress and provide additional support as needed.

Time for a team checkup
One final thought: If all you are hearing is complaints, it may be time to take a critical look at your team. Good teams do more than complain; they pitch in and help one another succeed. Do your employees truly understand that they are empowered and are expected to help others? Do they have the assertiveness and coaching skills needed to do so well? Enhancing co-workers' abilities in these critical areas will result in more team cohesiveness and better overall results.

Regards,

George Mancuso, CPC

Client Growth Consultants