Businesses operate today in a marketplace that demands efficiency. If the company expects to make a reasonable profit, there is no room for over-compensating of staff, over-hiring of staff, or for excessive staff turn-over.
Why am I mentioning “excessive staff turn-over”?
Because if the team leader or company owner is trapped in a cycle of endless hiring, in order to replace exiting team members–then that team will not be efficient. There is simply no way to maintain the culture of a Surging Team if the team leader or company owner is constantly trying to replace team members who quit after only a brief experience with your company or team.
In a misguided, but well-intentioned effort to reduce turn-over, many companies adopt the “let’s pay them more so they won’t leave” tactic. As a corporate executive and franchise business owner, I’ve seen this tactic used many times. It seems logical to assume that people are leaving because they want to make a higher salary–so why not just provide it? If you do provide higher-than-market compensation, all you’ll do is assure that your company profits are reduced in proportion to the compensation over-payment. I’ve seen it many times, and you will either learn this quickly, or you’ll learn it eventually, but you will indeed learn this. Hopefully you’ll still have a company after you learn that you can’t give away precious profits.
It may be true that your company is offering compensation that is below the market rate for the set of responsibilities that make up the particular job, but I’m proceeding here under the assumption that you as the team leader or company owner have already made sure that your staff compensation is at least at or near the market rates–and you are still experiencing high employee turnover rates.
The reason people leave your company are usually not the same reasons they give you in an “exit interview”. That’s because it’s difficult to put into words the feelings people have when they experience the culture of your company and your team. The truth is that most unexpected turn-over is due to the culture of your team or company. That is bitter medicine to swallow, but as a team leader or company owner you must look in the mirror–and the sooner you can see the truth, the sooner you can address the real problem.
Ok Scott, what can be done about excessive employee turnover?
Companies and teams that embrace the Surging Team culture, experience less turnover–BECA– USE PEOPLE FEEL BETTER WHEN WORKING IN A SURGING TEAM ENVIRONMENT. You can’t pay people enough to work in a culture where they feel like each day at work is one more day spent wasting their precious talents and their one life–even if they are paid well to do it. They will fantasize about leaving your team as soon as they can–and that is the real moment that guarantees their eventual and inevitable turn-over.
People working on a Surging Team feel quite the opposite. They experience increased feelings of well-being, better health, higher productivity, and a positive collective spirit that becomes your team’s marketplace advantage. Your competition will never see you coming because they can’t see or measure the positive effects of a Surging Team culture.
The bottom line is that developing and maintaining a Surging Team environment inside your company will help keep your largest controllable expense item as low as possible, which allows you the owner, to increase your profitability. I know from experience that those company owners who felt powerless to stop unnecessary staff turnover, while keeping their employee compensation costs from growing out-of-control, were the ones who were soon going to be out-of-business.
BOLDbreak has one purpose, and that is to provide team leaders and company owners the tools and training they need, to develop an unstoppable Surging Team–which translates directly into increased company profitability. Contact me today and let’s begin the transformation of your team, your company, into an unstoppable Surging Team.
Until then, Keep Winning!