Have you fully considered what happens when you lose an employee (which will lead to employee turnover), particularly one who has been with you for an extended period?
A chunk of your business leaves with the ex-employee. Let me explain.
Employee Turnover: Stop Losing Your Memory
The ex-employee knows how to do things, where items are stored, little facts and figures, and other information that perhaps no one else in the company knows. Your business has, in effect, lost some of its memory.
For example, there is a mountain of data on the computers your employees use. You may assume that because vital information is on computers, you can find it when needed. But because of the intricate system of layered folders, maybe only the person who organized the files on a particular computer knows where to find the data you seek—and that person walked out your door six months ago.
A study reports that eighty percent of a company’s digital data is generally inaccessible because it is stored as personal files on personal computers. That’s like saying the business could lose eighty percent of its memory due to employee turnover. A scary thought.
While there are some you can’t prevent, it is generally believed that eighty percent of employee turnover is avoidable. It makes sense for us as business leaders to examine the conditions in our companies that cause people to leave.
Unwanted turnover is prevented in two ways: first, by not hiring people who are at poor risks for long-term employment; second, by providing the people you hire with better leadership and management.
If your turnover is more than only a few employees during their first six months, examine your hiring process and find where improvements are required. Bad hires are preventable. Avoiding this mistake saves considerable time and expense.
Another unwanted turnover suggests your managers’ performance needs evaluation and improvement. A 360° feedback program followed by a program of management skills development may be needed. An analysis of your unwanted turnover during the past year might pinpoint specific problem areas. Did the lion’s share of the turnover take place in a particular department? Were most of the people who left supervised by the same manager?
Get a handle on it. You can’t afford to lose your memory.