It’s YOU!

This blog is for leaders who have a high turnover of employees in their organizations.  The high turnover may be in a specific department, division, or operational area.  Drilling down, the turnover is associated with one manager or supervisor.

You may find this advice uncomfortable – take that as a good sign, things are going to change – and change comes with a certain amount of discomfort.

Advice #1:  Review your organization.  For each manager or supervisor of people, calculate the turnover rate for the last two years.  Do this for every level of management.  Along with the percentage of turnover, associate a number with the figure as well.

Advice #2:  As employees leave your organization, it’s easy to rationalize why they are leaving – they found a better job, more money, different location, better benefits, etc.  Some of these reasons may be valid.  However why would your employees open themselves up to these new opportunities if they were happy where they were?  THE NUMBER ONE REASON EMPLOYEES LEAVE THEIR EMPLOYMENT IS BECAUSE OF BAD MANAGEMENT.

Advice #3:  How much are your managers/supervisors costing you?  Calculate (yes, in real dollars) how much each manager has cost the organization.  Here’s a simple way to look at it:

1.  Identify the salary for each position that has turned over in the last two years.
2.  Multiply each salary by 150% (200% – 250% for managerial or sales positions).
3.  Add up the cost associated with each manager/supervisor.
4.  Add up the cost associated with each level beyond the front line supervisor.
5.  Add up the cost for the whole organization.

Advice #4:  Many leaders I work with are hesitant to approach a long time or favored manager regarding turnover and ability to manage.  If the numbers are relatively small and ones you can live with, no more is necessary in this area.  If the numbers pop your eyeballs out of their sockets, time to grow up and have the tough discussion.

Advice #5:  Retraining/retooling.  To decrease the cost of turnover, you may choose to eliminate the offending manager, reassign the manager to a non-employee role or develop the offending manager through training.  Word of caution (because I’ve seen this happen too many times) – don’t put your entire team through development training to address one problem employee.  Put your big boy pants on and tackle the problem individually.  If you’re asking if it is worth it, look back at the costs.  It’s your call.

What would you offer as advice?  Have you had any surprises?  How have you dealt with turnover?  Leave your comments below.

To print this or any other post, click the first icon in Share the Knowledge below.