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Determining the root cause of employee turnover

Some manager's first response to turnover is… our compensation plan and bonus structure needs to be changed. Before you overhaul your compensation plan, consider your overall management strategy.

Ways to help determine the root cause:

Observe departments
Just spending time in the departments or on the job will tell you a lot. Roll your sleeves up and work with the people in every department, even if it’s only for 15 minutes. Walk around A LOT, be visible, and GET OUT OF YOUR OFFICE. Be aware of your surroundings. Develop the skill of listening to all conversations in passing from all departments. Notice and watch the body language of others especially when they talk to each other. You’ll be able to get a good idea of how people really feel about their jobs.

Launch a “Fix-it” committee 
Sometimes as leaders we don’t always have the answers. Pick 1, 2 or 3 people or more in your company ask them to figure out what’s wrong and come back to you with a solution. Oh there’s one catch; they have to fix it. They have to implement the new strategy, not you! This is a win win. You get to let go and empower your team to make decisions and fix them. You also find out what needs fixing which will give you an idea of why you’ve had some turnover and what you must do to eliminate more. Here’s where the “fix-it” committee came from. Several years ago I was a Sales Manager for a large group of newspapers. This particular sales department consisted of 30 inbound and outbound salepeople, a very fast paced call center with deadlines for 21 newspapers. For those of you that are familiar with call centers, you know that when all 30 reps are on the phone you hear a kind of HUM, from all the voices talking at one time to customers. The same kind of hum you’d hear in any busy active department or even on a construction site. It’s a buzz that’s exciting and music to the ears of all leaders. One morning I arrived in the department, I walked through the call center and I realized I didn’t hear the HUM. Sure, some folks were on the phone, but many were not. No enthusiasm, no hum. Scary and alarming, especially for a call center with a budget of $8 million. I immediately called on 6 sales reps… seasoned, new, part-time/full time, and even people that didn’t get along.  I wanted the opinion of a mixed group. I said… I need your help, something is wrong out there; there’s no hum. I’d like you to be the “fix-it” committee. Take two weeks and find out what’s wrong in the department. Do whatever you have to do. Conduct interviews; take team members out to dinner on me. Do what you can do get honest feedback. Come back with your findings and tell me the solution for each problem. One catch, you also have to implement the findings. The more you let go as a leader the more your people grow! You’d be surprised at the things that people come back with. Ask your people individually… “What’s one thing you could do to make a difference here?” 

Ask them to think about it and you’ll get back together again at the end of the week. You may just find a diamond in the bunch! 

Exit interviews 
Is an excellent tool and should be done by ALL companies of every size and profession. Exit interviews are conducted as a person leaves your company. The idea is to find out why they’re leaving. Most businesses don’t use this to their advantage. Before you decide to add, “exit interviews” to your company, be sure you have an action plan in place. How will you use the information you get? Make sure all managers are trained in conducting exit interviews. In order to own the idea and guarantee success you must have a plan in place and a buy in from all managers.

Exit interviews should not be scheduled on the employee’s last day. Waiting until the last minute risks that it won’t be conducted at all or conducted in the right manner. It also says to the interviewee that it’s not really that important, just one of those company things that has to get done.

Have your questions prepared in advance. Ask questions that require an explanation other than a yes or no answer. Why are you leaving? What did you like about your job? What did you like about the group you worked with? What did you like about the company? What did you like about your Manager? Then, ask the opposite. Always ask the question, what could we as a company do to improve, attract and retain employees? What could your manager have done differently? If you were asked… What’s one thing you could do to make a difference at this company, what would you say? You must find out all the good and bad with every detail. Conduct the interview over lunch. Make it a comfortable meeting, you want to invite conversation. Done correctly, exit interviews combined with an action plan is one of the best ways to determine the root causes of employee turnover.
The question is, what are YOU going to do about it?



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