May 26, 2014

Team Management

Reasons of the staff turnover. Measures for its elimination

By Alexander Sergeev

Staff turnover. Many companies pay too much attention to this problem. They conduct various experiments using outdated methods but do not really understand whether staff turnover is bad or good? If good specialists leave the company – it is bad. If the “unworthy” people become leaders and then they are fired – it is not good either, because it wastes a lot of time. And if the one who is able to quickly climb the career ladder and take responsibility for large areas, sweeps bad workers away from his path – it is good for the company. In fact, staff turnover in a company is a normal thing, and if you learn how to control it, it will bring only use. Below we will briefly describe the system which can help you to reduce staff turnover at times and benefit from it.

The main reasons of the staff turnover:

  • Incorrect structure of the company (wrong  system of selection, inconsistencies in the objectives, lack of education, absence of the gradient approach in the introduction to the post).
  • Lack of motivation (no personal benefits, career development).

Since we are talking about the staff, let’s define what it should be like.

Society can be divided into three types of people:

Type 1: the so-called “unproductive” employees who do not want to take responsibility. Instead of working they are looking for the reasons for complains. They do not contribute to the prosperity of the company. They are about 20% of the staff.
Type 2: “doers”. These  people are always in motion. They like to help to create. They are about 60% of the staff.
Type 3: “creators”. Unique people who take responsibility for everything. They aim to create something new. “Doers” actively help them. If the company is flourishing quickly, it means that its leaders are “creators”. They are about 20 % of the staff.

If you’ll manage to turn the staff turnover into a successful screening of “unproductive” employees, it will be very useful because you’ll get rid of people who can destroy your company and increase the amount of employees who will contribute to its development. Of course, a person who will be responsible for this must be honest and have a great desire to cooperate, otherwise the company will not get good employees.

How to weed out “unproductive” employees?

In order to get rid of  “unproductive” employees you need to establish probation at the stage of invitation to the company, where trainees will be given a variety of tasks within a month. I mean a structural unit of the company responsible for new employees. People who are going to work in the company should first undergo probation. They do not become full-fledged employees. They can sign a contract for a month or two with a minimum salary. Then they are given tasks depending on the desired position. For the assistant of a sales manager, a good challenge would be to conclude ### number of transactions, depending on the medium that makes regular employee. It could be anything. It is important to take to the probation everyone who has a desire. If you do not really like someone’s work, you can increase his task . If he cope with the increased task, he is valuable to the company, and this is important. If a person has no result, then you can say goodbye to him. If a person creates the appearance of result by hundreds of intellectual questions, he should be sent to the competitors. It will help you to get rid of them. If a person just does his work and achieves the objectives, you should hurry to hire this person and give him more tasks. Help him to cope with them and then pass an activity under his responsibility. Thus, you can ensure that the company at least gets employees capable of reaching goals. In other cases, when there is no exact system of staff selection, staff turnover can instantly or gradually destroy your company.

Probation can solve a large number of problems. But it does not guarantee that employees will always work with enthusiasm and laid out on 110%. Definitely not. It depends on lots of other things. Motivation also plays an important role. It is clearly one of the most common problems, which directly affects the loss of valuable human resources.

Large companies such as Ford, McDonald’s, Toshiba, Mitsubishi describe the principles of the company’s life. This is an internal system of how a person can come to the company and what he can achieve. There is a definite system of rewards and privileges, and it’s not just money. For the employee it is important to make money, rather than get money and he is interested in the transparent system. When a person knows the rules of the company, when he knows how he can grow in this company, he feels more free and he is able to achieve much better results.

There is a big problem, which many companies face nowadays. There are leaders and staff, but they are separate, the cmpany is not the company of employees. The employee of Toshiba is proud that he is the employee of Toshiba and he knows what he can do to succeed in the company and the company’s goal correspond to his own goals.

There are certain rules of the rewards and the system of penalties and it is a game that the company creates, it makes its life. In multilevel motivation there are 4 main motives why people do something.

  • We do some things because it should be done. It should be clear for the employee how he can earn more in his company, what he should do to earn more. Probably, every employee is interested in the answer to the question “What should I do to earn more?”
  • There are things that we do because we want to get personal benefit. So, you should make it clear for the person how he can get more personal benefits, not only money, but also some additional things. For example, company car.
  • The next level of motivation is interest. Interest is caused by importance. To create interest you should show that something is important and valuable and that it can help a person to achieve more. There is more interesting work and less interesting. A person can increase his level of interest in the company. For example, a company which  that solves small problems is not very interesting, But to become the representative of the Mitsubishi Corporation in Russia – it’s really interesting, it is another level of responsibility and tasks. How well you have to be prepared to solve such problems?
  • There is even higher level of motivation – a sense of duty. Business owner prescribes the system of a game in his company. If the game is well described, as football, then a large number of people join it and it ‘s fun to play.And now some words about training of the employees. This is very important, but to be effective you have to make monthly statistics. It will reflect “the value of employees”. Income is divided by the number of employees. Fill it weekly if possible. If training is rare, it can be filled once a month. It will show whether the training that you use is effective or not. If the training really helps your employees and they become more confident, it will influence the statistics “the value employees”.

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