Speaker 1: Did you know that 76% of labor turnover is preventable? Well, that's according to a recent study published by the Work Institute. And if you are in an industry with a tight labor market and it's hard to find qualified candidates, or if you're just having problems keeping your existing employees, I'm here to provide you with a few simple solutions. And guess what? They may not be what you think. Hi, I'm Theo Gilbert-Jameson with Performance Solutions by Design, and in this segment we're focusing on rethinking employee retention and turnover. And I'd like to highlight five essential questions that leaders struggling with recruitment, retention, and employee turnover must be able to answer. One, what is labor turnover currently costing your organization? Two, what are the root causes of your high turnover? Three, what are the consequences of doing nothing and allowing turnover to continue to spiral out of control? Four, how would you describe the candidate experience when someone applies for a job online and in person with your organization? And five, what's your strategy to increase employee retention? And if you watch this video through the end, I guarantee you'll take away a number of great ideas to help you build a preliminary strategy and clearly articulate absolutely what you need to start, start, start, stop, and continue doing to decrease employee turnover by selectively hiring and retaining the best and brightest candidates in the labor market. So let's jump right into the first question by asking, do you know what employee turnover is costing your company? I bet the dollar amount is much higher than you think. As a matter of fact, going forward, I want you to keep in mind that every time you lose an employee, the virtual cash register within your department is ringing. It's estimated that losing an employee can cost one and a half to two times their salary. And depending on the level of education and skill, the financial burden to the company continues to fluctuate. On average, replacing even an hourly worker costs a minimum of $3,500 per new hire. Next, what are the root causes of high turnover within your team or organization? Well, it's pretty simple. Typically high turnover originates from leaders making poor hiring decisions. Employees feeling unappreciated. A lack of accountability. No two-way communication. A lack of employee recognition. No advancement opportunities. Incompetent leaders. And especially non-competitive wages and benefits. And this leads us to our next question. What are the consequences of doing nothing and allowing turnover to continue to spiral out of control? Well, when leaders don't act with a sense of urgency, it leads to low employee morale, top performers leaving, lost productivity. It potentially diminishes brand reputation and integrity. When leaders don't take a proactive stance to halt high labor turnover, it leads to high customer dissatisfaction, often as a result of inconsistent product or service delivery. And ultimately, sales and profits suffer. And let's cover one more question before we jump into our strategies for success. Describe the candidate experience when someone applies for a job online and in person with your company. Well, maybe your organization is different, but many candidates complain that the experience is often disorganized with no structure. The person interviewing them seems to be unprepared. If the candidate doesn't get the job, there's no follow-up. And if they are hired, often the job offer is confusing with a somewhat ad hoc onboarding process. Now, what does that say for your organization? On the other hand, the optimal candidate experience is one where the recruitment, interview, and hiring process is structured. When candidates come in person to interview, they are met with a warm welcome and a friendly greeting from every employee they encounter. The entire process feels prepared with immediate follow-up within hours of completing the interview. And of course, the job offer and onboarding process is organized and leaves the candidate with a significantly positive emotional experience. And even if the candidate doesn't get the job, they aspire to be considered for future job openings. So what does it take to increase employee retention? Well, you must develop and implement a sound employee retention strategy that focuses on seven key areas. One, hiring practices that ensure leaders select the right people by not compromising the selection process and hiring people that are just warm bodies. Two, we must focus on employee training, development, and career opportunities at every level. Three, we have to provide competitive wages and benefits within our industry and region. Four, we must value work-life balance. Five, we must create an environment where everyone feels respected, valued, trusted, and appreciated. Six, we must focus on constant communication and feedback so employees know where they stand and are kept up to date. And seven, we must never forget the importance of regularly recognizing employees, including the celebration of small accomplishments. So before we close this segment to create a sound employee retention strategy, here are a few assessment questions you need to answer. What is your current labor turnover? You know, I'm often surprised how many leaders and department heads have no idea of this very important number. Where are your highest areas of employee turnover? Is it a specific job, department, or location? What's causing the high levels of turnover? Is it the fact that there is no recruitment strategy? Ineffective leadership. Compensation issues. A lack of growth opportunities or recent layoffs. How is this impacting you? Are your bonuses smaller? Is the company's reputation tarnished? And are the root causes of high turnover making it even harder to find qualified candidates? What's your employee retention goal, let's say for this year? And how will you hold leaders, including your managers and supervisors, accountable for turnover? And if you're currently challenged with finding qualified candidates, here are a few strategies that might work for you. Like implementing or revamping your company's employee referral program. Handing out, I noticed your work, recruitment cards when you encounter someone who provides exceptional customer service. Shortening the selection process so qualified candidates don't slip away. Offering signing bonuses. Paying more attention to internal transfers and promotions. Being more flexible when it comes to wages, schedules, work experience, education, and job responsibilities. Consistently conducting those exit interviews so you have a better understanding of why people are leaving and how you can fix it. Considering hiring veterans, retirees, college and trade school students. And definitely re-evaluating technology solutions to ensure candidates who apply for jobs, especially online, have an easy, flawless experience. So there you have it. Everything you need to jumpstart a sustainable strategy that will lead to lower employee turnover and higher employee engagement and retention. Remember, 76% of turnover is preventable. And taking immediate steps like the ones we've talked about will help you attain sustainable success. Thanks so much for watching and have a wonderful day.