When employees leave a job, they're often asked to provide information at an exit interview.
𝙃𝙤𝙬𝙚𝙫𝙚𝙧, 𝙤𝙛 𝙛𝙖𝙧 𝙜𝙧𝙚𝙖𝙩𝙚𝙧 𝙫𝙖𝙡𝙪𝙚 𝙖𝙧𝙚 𝙨𝙩𝙖𝙮 𝙞𝙣𝙩𝙚𝙧𝙫𝙞𝙚𝙬𝙨 𝙬𝙞𝙩𝙝 𝙠𝙚𝙮 𝙚𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨. Because, for obvious reasons, it is better to collect information on what makes your great employees stay, and what might make them leave. 𝘽𝙚𝙛𝙤𝙧𝙚 𝙩𝙝𝙚𝙮 𝙚𝙫𝙚𝙣 𝙘𝙤𝙣𝙨𝙞𝙙𝙚𝙧 𝙢𝙤𝙫𝙞𝙣𝙜 𝙤𝙣, 𝙬𝙝𝙞𝙡𝙚 𝙩𝙝𝙚𝙧𝙚 𝙞𝙨 𝙨𝙩𝙞𝙡𝙡 𝙩𝙞𝙢𝙚 𝙩𝙤 𝙙𝙤 𝙨𝙤𝙢𝙚𝙩𝙝𝙞𝙣𝙜 𝙖𝙗𝙤𝙪𝙩 𝙞𝙩. As opposed to gathering the data as someone is leaving. Which may improve things for those who remain, but which has zero impact on the person who’s already out the door. But a stay interview, done right, can stop someone from resigning to begin with: 💠 They have always been a good practice. 💠 Given today’s job market, they are rightfully gaining in popularity. The idea is that the employee meets 1:1 with their manager, either in person or remotely, for perhaps 20 minutes. And the manager asks the following types of questions: ✅ What do you look forward to when you come to work every day? ✅ What do you like most and least about working here? ✅ What can I do to best support you? ✅ What might tempt you to leave? Then, 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡𝙡𝙮, ensures that action is taken as a result of the feedback. 💠 These meetings not only give key people the chance to provide insights. 💠 They also promote trust and open communication between the manager and employee. 💠 And they allow the employee to be seen and heard, to feel supported, and to know that their manager cares. All of which are critically important to having engaged employees. Therefore, a 1:1 stay interview by itself, conducted well, will fulfill this desire. Then, ensuring action is taken on the feedback received, will further drive engagement and retention. 𝘽𝙪𝙩, 𝙖𝙨 𝙖𝙡𝙬𝙖𝙮𝙨, 𝙡𝙚𝙖𝙙𝙚𝙧𝙨 𝙨𝙝𝙤𝙪𝙡𝙙 𝙣𝙤𝙩 𝙖𝙨𝙠, 𝙞𝙛 𝙩𝙝𝙚𝙮 𝙖𝙧𝙚 𝙣𝙤𝙩 𝙜𝙤𝙞𝙣𝙜 𝙩𝙤 𝙙𝙤 𝙨𝙤𝙢𝙚𝙩𝙝𝙞𝙣𝙜 𝙬𝙞𝙩𝙝 𝙩𝙝𝙚 𝙞𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣. Because a lack of follow-through will frustrate employees and may itself be the decider in causing them to look elsewhere. Compensation is always important, to the extent that employees want to know they’re being fairly paid to market. Beyond that, a great culture is absolutely the differentiator, especially in today’s market. Particularly for smaller employers who may not be able to compete against larger companies on salary. Bottom line: If employees are not engaged and do not feel like they are part of a great culture, they will leave.
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If you are Still Operating under the Old way of Doing Things - You will Not be Able to Hire1/25/2022 Are you an employer that, like many others, cannot fill your open positions, despite doing everything right?
That, however, is apparently the question:
Allegedly, employers are saying they cannot find employees at any price. But the candidates applying for jobs, and the employees already working at some of those companies, are saying that the pay and benefits are too low. And that companies are still operating as though COVID never happened.
So, there is obviously a disconnect. It is no longer news that COVID has led to a fundamental shift in the way people now think about work. 𝙀𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨 𝙖𝙧𝙚 𝙣𝙤𝙬 𝙞𝙣 𝙩𝙝𝙚 𝙙𝙧𝙞𝙫𝙚𝙧𝙨’ 𝙨𝙚𝙖𝙩, 𝙖𝙣𝙙 𝙩𝙝𝙚𝙮 𝙬𝙖𝙣𝙩 𝙢𝙚𝙖𝙣𝙞𝙣𝙜𝙛𝙪𝙡 𝙬𝙤𝙧𝙠, 𝙖𝙣𝙙 𝙡𝙚𝙖𝙙𝙚𝙧𝙨 𝙬𝙝𝙤 𝙜𝙚𝙣𝙪𝙞𝙣𝙚𝙡𝙮 𝙘𝙖𝙧𝙚. Both of these things are critical, among others, to having engaged employees and a great culture. But, before that even comes into play, you must first pay what the market demands.
Then, ensure you have meaningful work, caring leaders and the core practices that engage employees, in place. It’s always been the case that pay alone is not enough to keep employees, if there’s not also a great culture in place.
Or you won’t be able to find the people you need to come and work for you or to keep the employees you already have. Because while it appears that not all companies have understood the major shift from just two years ago, some have, and that is where people are going to go: Both the candidates who are already looking, and the employees who are not getting what is fast becoming the norm in today’s work world. 𝙄𝙣 𝙨𝙝𝙤𝙧𝙩, 𝙩𝙤 𝙖𝙩𝙩𝙧𝙖𝙘𝙩 𝙩𝙝𝙚 𝙘𝙖𝙣𝙙𝙞𝙙𝙖𝙩𝙚𝙨 𝙮𝙤𝙪 𝙣𝙚𝙚𝙙, 𝙖𝙣𝙙 𝙩𝙤 𝙠𝙚𝙚𝙥 𝙮𝙤𝙪𝙧 𝙘𝙪𝙧𝙧𝙚𝙣𝙩 𝙚𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨, 𝙘𝙤𝙣𝙨𝙞𝙙𝙚𝙧 𝙬𝙝𝙚𝙩𝙝𝙚𝙧 𝙮𝙤𝙪'𝙧𝙚 𝙤𝙛𝙛𝙚𝙧𝙞𝙣𝙜 𝙗𝙤𝙩𝙝 𝙜𝙧𝙚𝙖𝙩 𝙘𝙤𝙢𝙥𝙚𝙣𝙨𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙖 𝙜𝙧𝙚𝙖𝙩 𝙘𝙪𝙡𝙩𝙪𝙧𝙚. By paying right and putting in place the fundamental practices that engage employees. Most importantly, if you haven’t already, realize that employers are no longer the ones in charge. I recently read about the CEO of a software company, who offers new hires $5,000 to resign after two weeks.
Essentially, new hires can decide to leave, and they receive an exit bonus.
The premise is that each new hire should be a cultural fit and be aligned with the vision and goals of the company. If not, it is cheaper to have them leave quickly, as opposed to many months down the line, which would cost even more. 𝘽𝙚𝙘𝙖𝙪𝙨𝙚 𝙞𝙩 𝙞𝙨 𝙘𝙚𝙧𝙩𝙖𝙞𝙣𝙡𝙮 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙛𝙤𝙧 𝙖 𝙜𝙧𝙚𝙖𝙩 𝙘𝙪𝙡𝙩𝙪𝙧𝙚 𝙩𝙝𝙖𝙩 𝙚𝙫𝙚𝙧𝙮 𝙨𝙞𝙣𝙜𝙡𝙚 𝙥𝙚𝙧𝙨𝙤𝙣 𝙞𝙨 𝙚𝙣𝙜𝙖𝙜𝙚𝙙, 𝙢𝙤𝙩𝙞𝙫𝙖𝙩𝙚𝙙 𝙖𝙣𝙙 𝙚𝙭𝙘𝙞𝙩𝙚𝙙 𝙩𝙤 𝙗𝙚 𝙩𝙝𝙚𝙧𝙚. From this CEO’s perspective, this practice has helped him retain top talent, in addition to improving culture.
One solution is to slow down a little, and take more time before deciding on who to hire. Then, if the new hire is not working out, for leaders to speak to them, and, if need be, have them leave. Without paying them to do so. Because there’s no need, if leaders are willing to ask someone to go, if things are not working out. That way, the cost of keeping a disengaged employee any longer than necessary is alleviated, but so too is the cost of paying someone to leave. The Great Resignation is still in full swing.
Meaning that one of the main concerns at many organizations is employee retention. Because losing even one good employee is expensive, not to mention the negative effect that it has. 𝘼𝙣𝙙, 𝙤𝙗𝙫𝙞𝙤𝙪𝙨𝙡𝙮, 𝙩𝙝𝙚 𝙢𝙤𝙧𝙚 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙩𝙝𝙚 𝙥𝙤𝙨𝙞𝙩𝙞𝙤𝙣, 𝙩𝙝𝙚 𝙝𝙞𝙜𝙝𝙚𝙧 𝙩𝙝𝙚 𝙘𝙤𝙨𝙩 𝙖𝙣𝙙 𝙞𝙢𝙥𝙖𝙘𝙩 𝙞𝙨 𝙜𝙤𝙞𝙣𝙜 𝙩𝙤 𝙗𝙚.
So, even one person earning $100,000/year leaving, could cost an organization $150,000 to replace. If just five people earning that same amount leave, the numbers quickly add up. The costs take into account the direct replacement costs such as advertising or agency fees, and time spent interviewing, which are somewhat evident. But there are a number of indirect costs, which shouldn’t be forgotten such as: ✅ Declines in productivity ✅ Increases in customer service issues ✅ Lowered knowledge base ✅ Morale and engagement problems ✅ Increased risk of turnover Because when someone leaves, it impacts everyone around them. On the one hand, turnover is a normal part of business, and it will always happen. In fact, some turnover is good, since all companies can benefit from the new ideas and perspectives someone new can bring. But too much is definitely a problem. Plus, your recruitment efforts will suffer, with former employees posting about their experiences at your organization on sites like Glassdoor. However, there are things that organizations can do, beyond great salaries, flexible schedules and other nice-to-have perks. Not that those things are unimportant, and, obviously, being paid fairly is a baseline requirement. 𝘽𝙪𝙩 𝙧𝙖𝙩𝙝𝙚𝙧, 𝙗𝙮 𝙥𝙪𝙩𝙩𝙞𝙣𝙜 𝙞𝙣 𝙥𝙡𝙖𝙘𝙚 𝙩𝙝𝙚 𝙘𝙤𝙧𝙚, 𝙛𝙪𝙣𝙙𝙖𝙢𝙚𝙣𝙩𝙖𝙡 𝙥𝙧𝙖𝙘𝙩𝙞𝙘𝙚𝙨 𝙩𝙝𝙖𝙩 𝙙𝙧𝙞𝙫𝙚 𝙚𝙣𝙜𝙖𝙜𝙚𝙢𝙚𝙣𝙩, 𝙖𝙣𝙙 𝙗𝙪𝙞𝙡𝙙 𝙤𝙧 𝙞𝙢𝙥𝙧𝙤𝙫𝙚 𝙘𝙪𝙡𝙩𝙪𝙧𝙚.
Because it’s an employee’s market, and they are rightfully searching for purpose and meaning. And an organization with a great culture. And if their current employer is not providing that, employees will find a company that will. One that has already realized that engaging employees and having a great culture is the core differentiator in today’s market. As a leader, have you realized that, going forward, promising some degree of remote work gives you a competitive advantage in your recruiting and retention efforts?
𝘽𝙚𝙘𝙖𝙪𝙨𝙚 𝙩𝙝𝙚 1950𝙨 𝙢𝙤𝙙𝙚𝙡 𝙤𝙛 𝙛𝙞𝙫𝙚 𝙙𝙖𝙮𝙨 𝙥𝙚𝙧 𝙬𝙚𝙚𝙠, 𝙤𝙣-𝙨𝙞𝙩𝙚, 𝙖𝙩 𝙖 𝙘𝙤𝙧𝙥𝙤𝙧𝙖𝙩𝙚 𝙡𝙤𝙘𝙖𝙩𝙞𝙤𝙣 𝙨𝙝𝙤𝙪𝙡𝙙 𝙝𝙖𝙫𝙚 𝙙𝙞𝙚𝙙-𝙤𝙛𝙛 𝙮𝙚𝙖𝙧𝙨 𝙖𝙜𝙤. While it made sense then, since office equipment was only accessible at work, this hasn’t been the case for years now. Some companies recognized it, and already allowed remote work, some or all of the time. But, for the majority of organizations, it took a pandemic to realize it. According to a recent PWC survey, 52% of executives said that employee productivity had increased during the pandemic. While Gallup has reported that remote workers experience higher engagement. There are some things for employers to consider:
So, realize that in order to thrive, and for organizations to maintain a competitive advantage, employees will expect some degree of remote work and flexibility. In fact, a recent Gallup finding shows that 60% of employees want to be remote some of the time. Which does not mean a set number of defined days each week on-site. 💠 Instead, where possible, allow your employees the freedom to pick their work location. 💠 If some on-site is really necessary, allow them to choose when that will be. Companies offering flexibility like this will stay ahead of the game in retaining their current employees, and with their hiring. 𝙎𝙖𝙮𝙞𝙣𝙜 𝙩𝙝𝙚 𝙥𝙡𝙖𝙣 𝙞𝙨 𝙛𝙤𝙧 𝙚𝙫𝙚𝙧𝙮𝙤𝙣𝙚 𝙩𝙤 𝙧𝙚𝙩𝙪𝙧𝙣 𝙩𝙤 𝙩𝙝𝙚 𝙤𝙛𝙛𝙞𝙘𝙚 𝙖𝙨 𝙨𝙤𝙤𝙣 𝙖𝙨 𝙞𝙩’𝙨 𝙛𝙚𝙖𝙨𝙞𝙗𝙡𝙚, 𝙙𝙤𝙚𝙨 𝙣𝙤𝙩 𝙢𝙖𝙠𝙚 𝙮𝙤𝙪 𝙖𝙣 𝙖𝙩𝙩𝙧𝙖𝙘𝙩𝙞𝙫𝙚 𝙥𝙧𝙤𝙨𝙥𝙚𝙘𝙩. Whether it’s candidates interviewing with you, or your employees currently working successfully from home. When so many others have already recognized that the 1950s way of working needs to be abolished once and for all. |
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