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HR Matters // A Newsletter On: Creating exceptional workplaces and extraordinary results

I’ve got some very exciting news to share. I’ve been asked to write a monthly column for the prestigious Boston Business Journal (BBJ). My beat will be talent maximization. The editor of the BBJ believes the topic of talent is quite newsworthy these days, and I couldn’t agree more. Let me know if you’ve got a story idea or your company is doing something news worthy related to talent. I may very well feature you in my next column! Here’s a sneak peak of what’s to come.

The Shocking Truth About Employee Turnover

What if you had to write a personal check every time a worker departed from your employment? How long would it be before you were bankrupt? My guess is not that long.

In a recent Manpower survey, 86% of respondents indicated they were actively seeking new job opportunities. I imagine some of these people are working for you. Still think employee turnover is just part of the cost of doing business?

While companies know that replacing an employee costs considerable time, energy, and lost productivity, few can put a dollar figure on the actual cost. Lack of hard data means investments in retention and recruitment programs get placed on the back burner, or efforts are made to solve the wrong problem, thereby resulting in a continuous outflow of money. When it comes to employee turnover, here’s what you must know.

Your mileage may vary. If you’ve looked at the cost of owning a car lately, you’d know that it varies depending on the type of vehicle you are driving as well as where you reside. Only a fool would buy a car without running the numbers to ensure he or she could afford what is, for most, a large investment.

Yet employers make huge investments when hiring, with little thought to what it costs when things go awry. Estimates for the cost of employee turnover for a single position range from 30% of the yearly salary for hourly employees (Cornell University) to 150%, as estimated by the Saratoga Institute. The shocking truth is that employee turnover costs vary significantly. How is this information helpful to you?

Why use estimates with that much variance when you can calculate the exact cost of employee turnover for your organization? Selecting one of these estimates is certainly easier, but is that any way to run a business? You can use my free employee turnover calculator to determine how much of an impact unwanted employee turnover is having on your bottom line. Do so before making your next hire.

Most companies don’t have a retention problem. They have a hiring problem. At some point in your life, you’ve probably gone into your doctor’s office and told her you were suffering from a particular disease based on your symptoms and the intense research you conducted on WebMD. Most likely you were surprised to learn that you completely misdiagnosed the situation.

The same thing happens in business. Clients contact me because they’re feeling the pain caused by high employee turnover. We work together to determine the root cause so the right prescription can be administered to relieve the pain. More often than not, the problem is related to hiring.

In one instance, my client was recruiting at Ivy-league schools for entry-level sales personnel. They did quite well getting candidates to agree to come work for them. Right at about the nine-month period, after they had invested heavily in the training of these people (at least 40K per employee), most resigned.Acceptance into graduate school was the most common reason they were fleeing.

The following year, we completely changed the recruitment strategy, which included recruiting at schools where a sales job with a great company was considered a step up, as opposed to a place to rest your weary feet on the way to something else. This change resulted in a 50% reduction in sales turnover, and yielded an additional $2M to the bottom line on an annual basis.

Lost knowledge is lost forever. When an employee leaves, he takes his knowledge with him. Do you even have a clue as to what some of your employee do? How many of your employees have their jobs documented well enough that someone could figure it out?

You’re already doing your own job and maybe even someone else’s. The last thing you have time to do is to learn a new job. Are you cross training your people? Are you taking special care of those people you’d really miss if they went away tomorrow?

The impact of employee turnover can be shocking, but it won’t be for those in the know who do something to prevent it.

© 2015 Matuson Consulting. All Rights Reserved.

Why A Coach Might Be Exactly What You Need

Coaching has come a long way since the days when companies used an outside resource to help fix toxic behavior at the top of the organization. Today, coaches are widely used across all levels of the organization to help people accelerate their development and improve their performance as leaders. Heck, even quarterback superstar Tom Brady has a coach or two! A great coach can help you make the most of your natural abilities and find ways to work around your weaknesses. So why would you even think of passing up this wonderful opportunity to up your game?

You may be thinking, “My company will never provide me with a coach.” For some that may be true. However, for many, coaches are available for the asking. Here’s what you should be looking for when selecting a coach to help dramatically boost your performance.

  1. Seek someone who has been there. You wouldn’t jump out of a plane with someone who has never skydived. So why would you hire a coach who has never done what you are seeking to do? When searching for a coach, find someone who has achieved the level of success you are aiming for.

  • Forget the certifications. Coaching is like the Wild West. There is no widely accepted certification-granting organization in the field of coaching, although some may argue that they are indeed the only ones who can deem people coaches. While I applaud people’s efforts to be effective coaches by attending certification programs, I would not turn away someone with experience simply because he didn’t have initials after his name.
  • Chemistry - At the end of the day, it comes down to fit. If you watch Dancing with The Stars, you know what I mean. Some stars perform at a higher level when their teacher is a taskmaster, while others need a more subtle approach. You know yourself best. Find a coach who will take you out of your comfort zone and will make you the best you can be.
  • Focus on the quality; not the price - We can get to the same destination in a four-cylinder car, yet some of us choose to drive a high-performance vehicle that will get us there faster. Of course, there is a cost to making this choice. Like cars, coaches come in a variety of models. Know what you’re getting and be sure you’re not sacrificing speed for cost.
  • Rules of Attraction: Your Monthly Tip on Attracting and Retaining Top Talent

    When it comes to employment, it’s no longer an employer’s market. I urge you to court your people every day so they will stay. Think about what you can do to make your organization so irresistible that people can’t imagine going someplace else.

    New Offering For My Best Clients! Executive Force Field Summit

    Companies are in desperate need of talent. Do you know where they’re getting it? They’re blatantly STEALING it from companies like yours! And up until now, there’s been nothing that you could do about it.

    In a recent poll, 64% of survey participants said that within the last twelve months they were approached either directly or indirectly about a job opportunity from one of their main competitors. Sixty-four percent!!! They’re sucking the lifeblood right out your organization, and most companies aren’t doing a single thing about it. Even worse - most aren’t even aware it’s happening! It shouldn’t be this way. What if you could create a force field around your organization that prevents others from pulling out your superstars?

    Today I’m introducing The Executive Force Field Summit. This new offering will be delivered in the form of a private, half-day, on-site summit for executives and their teams. We will work to understand the true financial impact that unwanted employee turnover is having on their business, as well as what they can do to prevent their people from being poached.

    This program is for those who are serious about employee and talent retention. You and your team will work together to build a force field around your organization to prevent talent from being whisked away. Together, we’ll identify the black holes where talent may be seeping out of your business, and close the gap on areas where your company is most vulnerable. Included will be tactics and strategies that you can instantly implement to increase the magnetism needed to attract and retain the best.

    I’m only doing this for a select number of organizations. Will yours be one of them? Contact me at 413-582-1840 or at Roberta@matusonconsulting.com for details and to schedule a date.

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    For more tips on attracting and retaining top talent, download a copy of Talent Magnetism. Call us today at 413-582-1840 if you’d like to discuss applying these concepts to your organization.

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    Meet Roberta Matuson

    For more than 25 years, Roberta Matuson has helped leaders in Fortune 500 companies, including General Motors, Best Buy, and, The Boston Beer Company, achieve dramatic growth and market leadership through the maximization of talent.

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    Testimonials:

    “Your work with my senior group exceeded my expectations. I've never seen anything like it. We are now going gangbusters, and the team is really working together. Fantastic job."

    Ronald P. Bryant
    President and CEO
    Noble Hospital

    “Roberta has proven to be a trusted advisor and I wouldn’t hesitate to recommend her to other CEOs who are looking to accelerate the speed and quality of decision-making."

    Tom Hopcroft
    President & CEO
    Mass Leadership Technology Council

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    Visit Roberta Online:
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    Email: Roberta@MatusonConsulting.com
    Tel: 413.582.1840 | Fax: 413.582.7111

    © 2015 Matuson Consulting. All Rights Reserved.