Matt Brewer
Contributing Writer
Direct Energy – Success Academy Trainer
One of the major concerns that I hear from small business owners is that it feels impossible to not only hire the right employees, but to keep their existing employees. When asked why those employees leave the company the number one reason always goes back to the money.
They feel that the majority of employees are leaving because they find a better paying job. My follow up question is always the same; was it a significant pay increase? The answer is typically NO!
Typically, they leave over a few dollars more per hour. I understand that everyone is looking to better themselves financially, but when I hear people leaving over a few dollars more an hour, it makes me wonder what the atmosphere in the business is like on a daily basis.
The most recent “Mercers What’s Working” survey showed that 32{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} of employees are actively looking for a new job. The reason for their unhappiness:
31{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} said they didn’t like their boss
31{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} was due to a lack of empowerment
35{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} due to internal politics
43{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f} was due to LACK OF RECOGNITION!
Nowhere in the top 4 reasons was money brought up as a reason for people leaving their current job. Money always seems to be the scapegoat when a company is having trouble retaining their employees but when you start looking deeper into the issue, it becomes more apparent that employees want a cohesive environment, where everyone is treated equally and recognized for a job well done! Sure employees want a competitive compensation package for the work they perform, but to believe that it’s all about money shows that the leadership of the business is out of touch with their employees.
When employees state that they don’t like their boss that seems like a major problem with the culture of your company. Does the manager, develop their employees to grow personally and professionally? Are they kind and considerate? These are questions that not only need to be answered but observed by leadership on a regular basis.
Employees want to feel that they are part of something bigger than their position, and giving them some power to make decisions and allowing them to come up with creative solutions only adds to the investment they have with your company. Empower them to answer this question: If this were my company, how would I handle this situation? Have them think logically and give you their decision. If it works to everyone’s benefit, then go ahead and do it. If it doesn’t, this becomes a great teaching moment to enhance their knowledge of the business.
Internal politics, ugh, this is thrown around all the time in major corporations. People feel that if they aren’t in the “IN” crowd then there will never be a change to promote or develop. In some cases this may be true, however, a good leader is able to confront this counterculture and show those who partake in this behavior that it is unacceptable.
This takes us to our last point and the biggest reason people leave their job, LACK OF RECOGNITION!
People like to be recognized for a job well done. It doesn’t matter the age group or social classification, (Baby Boomers, Gen X, Gen Y, or Millennials) we like recognition as long as it is genuine and sincere. The key to recognition is that it is done in a timely manner and to the person’s liking. I personally, am not a big “RAH RAH” guy who likes to be the center of attention,(oddly enough I am a trainer), but that doesn’t mean that I don’t like to be recognized for my accomplishments. I just prefer to have a one on one conversation and not in front of a big group. The more recognition that you display throughout your business, the more people want to be a part of being recognized.
The culture you create at your business is what keeps people in your business. When people feel appreciated and respected they will continue to work with you, and not leave over a few dollars per hour. Take the time to evaluate your business financially AND internally to find the areas of improvement that could change how people really feel about their job. A great exercise is to visualize a prospective partner walking through your business. What could they visually see, and what lies beneath the surface? Typically the things someone could see would show your company in a positive light, and what lies beneath the surface are the reasons people leave a company. Start with 2 items that lie beneath the surface and start working on course correction to eliminate those negative traits.
Success Academy Trainer Matt Brewer has over 15 years of experience in training and managing for a Fortune 500 company. During that time he successfully implemented a mass change in coaching tactics to increase productivity for over 800 customer service representatives. When the change was adopted, the company’s productivity increased by 7{938cd9e8dae860e800efc538277d4f7684e6f6981618ba70d1c34357a53c2e1f}, as well as profits. Matt teaches sales and communication skills through Success Academy to contractors nationwide.
Resources:
Alan Hall – I’m Outta Here, Why 2 Million Americans Quit Every Month