Guerin say: As a
general rule, direct, clear communication is the key to dealing with most
employee problems. Once you discover a problem, it's critical to take action
instead of letting it fester and get worse”.
When an employee
leaves your business, it costs your company in:
- Productivity. When the
employee leaves, productivity will usually take a downturn because other workers may have to
add the former employee's duties to their own workload, at least
temporarily.
- Money. In addition to the
monetary costs associated with lower productivity, you may have to pay
employees overtime to get them to take up the slack left by the former employee
until a replacement can be found. You may also have to face unemployment
claims
and pay for the cost of recruiting and hiring a replacement.
- Time. Not only may you be
distracted from your regular duties to cover for a former employee, but
you will now have to spend time and money advertising, interviewing, and
otherwise looking for a replacement employee. And don't forget the time
that you spent training and hiring the former employee. When you lose a
lot of employees, you're wasting time and money.
Having employees means dealing with a special set
of business issues. Making sure you handle those issues properly can be
essential to keeping your business running smoothly. From hiring to firing,
taxes to benefits, background checks to final paychecks: here’s a list of ideas to be a
successful employer:
- Find out the right way to advertise a job and handle interviews.
- Find out how to make a job offer, reject an applicant, and other details
related to new hires.
- Make sure you're properly handling employee files and performance
reviews
- Create an effective employee handbook and know how to discipline
employees for infractions.
- Familiarize yourself with requirements for overtime, minimum wage, and
equal pay.
- Ensure you're meeting requirements for recordkeeping and payroll
withholding.
- Decide on what kinds of employee benefits you want to offer.
- Learn basic information about family medical leave, including who is
covered, what kinds of leave are covered, and related matters.
- Learn about workers' compensation and other health and safety issues
like disease prevention and drug abuse.
- Be prepared for health and safety inspections.
- Avoid illegal discrimination based on age, pregnancy, and citizenship.
- Familiarize yourself with other forms of illegal discrimination,
including those under state and local laws.
- Get information on federal law for employees with disabilities,
including who is and is not covered.
- Learn how to handle about workers with various types of impairment,
including making necessary accommodations, getting medical exams, and similar
issues.
- Learn how to properly investigate worker complaints.
- Learn more about terminations,
including handling the firing process, continuing health insurance, and
safeguarding business information.
- Make sure you don't violate rules about employee privacy--learn about
monitoring, searches, and other activities.
- Learn about your state's laws for classifying
independent contractors versus employees.
- Think about how to handle unionization of your
business -- including how to make it unnecessary.
- Learn about when you may need a lawyer--and how to
work with one if you do.
- Don't hire the wrong people -- and hold on to the
right ones.
- Know the rules for drug and alcohol testing in your
state.
- Know your state's rules regarding employee arrest and conviction
records.
- Learn about your state's rules regarding access to personnel records.
- Find out about the minimum wage laws in your state.
- Understand how tax deductions work for salaries and other
employee-related expenses.
- Learn about FLSA exempt and non-exempt employees.
- Understand employer record-keeping requirements.
- Learn about the laws on continuing health insurance in your state.
- Find out about your state's laws on family and medical leave.
- Learn about your state's rules for workers handling hazardous chemicals.
- Familiarize yourself with your state's anti-discrimination laws.
- Learn about the final paycheck laws in your state.
- Familiarize yourself with the rules for distinguishing between employees
and independent contractors—both for yourself and for those you pay to do work.
- Discover the benefits of hiring incorporated independent contractors.
- Learn the tax and insurance basics of having workers who are independent
contractors.
High employee
turnover can have a severe impact on your business, both financially and
emotionally. If you suspect that turnover is an issue for your business, you should
take steps to recognize possible causes of turnover, measure your turnover
rate, determine turnover costs, and then address your turnover problems.
A high employee turnover rate,
the rate at which employees leave a business, can affect the bottom line of
businesses of all sizes. However, the negative effect on small businesses can
be particularly harsh due to limited resources and the investment in employees.
Because employees who are satisfied with their jobs generally don't give them
up, high turnover is usually indicative of a problem.
That's not to say that every
employee who leaves your company is unsatisfied — after all, some will retire,
leave town, quit because of family circumstances, desire to change professions,
or even start a business of their own. But if you have a lot of turnover and
you're losing good employees, you may want to give some thought to the
possibility that the cause of high employee turnover in your business is a
morale problem.
The causes of turnover are
related to the same factors that contribute to absenteeims— if workers are not
interested in their jobs, they will either stay away or leave.
But being unhappy in a job is not
the only reason why people leave one employer for another. If the skills that
they possess are in demand, they may be lured away by higher pay, better
benefits, or better job growth potential. While you can't control what's
happening with other companies, how much they pay, or which benefits they
offer, you can take steps to improve
morale at your business and make those employees who are with you
happy and productive. That's why it's important to know and recognize the
difference between employees who leave because they are unhappy and those who
leave for other reasons.
The following are some of the
more common reasons for high turnover in businesses:
- A bad match between the employee's skills and the job. Employees who are placed in jobs that are too difficult for
them or whose skills are underutilized may become discouraged and quit.
Inadequate information about skill requirements that are needed to fill a
job may result in the hiring of either under skilled or overqualified
workers. The requirements of a specific job should be carefully studied
for the required skills, and workers should be tested for the requisite
qualifications. Use job
analyses and job descriptions
to minimize the chances of this happening.
- Substandard equipment, tools, or facilities. If working conditions are substandard or the workplace lacks
important facilities such as proper lighting, furniture, restrooms and
other health and safety provisions, employees will not be willing to put
up with the inconvenience for long.
- Lack of opportunity for advancement or growth. If the job is basically a dead-end proposition, this should be
explained before hiring so as not to mislead the employee. The job should
be described precisely, without raising false hopes for growth and
advancement in the position.
- Feelings of not being appreciated. Since employees generally want to do a good job, it follows
that they also want to be appreciated and recognized for their work. Even
the most seasoned employee needs to be told what he or she is doing right
once in a while. Make sure your employees know that they are appreciated.
- Inadequate or lackluster supervision and training. Employees need guidance and direction. New employees may need
extra help in learning an unfamiliar job. Similarly, the absence of a
training program may cause workers to fall behind in their level of
performance and feel that their abilities are lacking.
- Unequal or substandard wage structures. Inequity in pay structures or low pay are great causes of
dissatisfaction and can drive some employees to quit. Again, a new worker
may wonder why the person next to him is receiving a higher wage for what
is perceived to be the same work. You should have a wage and
job evaluation system in place not only so that you are sure to
comply with legal requirements, but also to avoid this problem.
If you suspect that you have a
either a turnover or a morale problem, look at your employees and ask yourself
if any of the above apply.
While measuring turnover for
large companies with many employees is usually more technical and the results
more scientific, small businesses can also keep track of turnover and try to
spot trends and potential problems.
A small business owner can
follow these steps for tracking turnover:
- Keep a list or file of employees that leave. In the file,
include:
- the length of time that the employee worked for you
- the position that the employee held
- the reason that the employee left (information from an exit
interview can help here)
- Over time, try to spot trends in turnover.
- Are there positions that you have trouble keeping filled?
- Do employees tend to stay for the same length of time before
they leave your employ?
- Do employees seem to be leaving for similar reasons (like
receiving more pay or a more responsible position)?
- If you suspect there is a problem with one or more positions,
try to remedy or prevent the problem. It is sometimes possible to redesign
a job by adding more attractive duties and reassigning some less desirable
ones.
- If you suspect that you're not paying enough, obtain
information about what other businesses are paying for similar
positions.
- If you suspect that people are leaving because positions
elsewhere allow them more growth, you can emphasize to future employees
that the position has limited growth potential so that they know what to
expect, or you can try to find ways to expand the responsibilities of the
position.
- If the problem seems to be with one specific position, look
closely at the working conditions of that position. Were the employees in
that position forced to adhere to impossible deadlines, given all the
worst tasks, or forced to work with difficult customers or employees more
than should be expected? There may be something specific about this
position that is driving good employees away.
Once you find and hire a new
employee, you will still experience flagging productivity while the employee
learns his or her new job. Sometimes, depending on the job, temporary employees
can pick up the slack.
In other words, it costs the
business money every time an employee leaves because it takes even more
resources to return to the same level of productivity or level of performance
that you had before.
On the whole, you're going to
want to prevent turnover as much as possible because of the high costs
associated with it.
If a business wants to ensure
that employees remain with the business, it has to:
- Identify the positive aspects of the business that make
employees want to stay.
- Emphasize those aspects.
Some internal factors that may
influence your employees' desire to stay are:
- desirable benefits
- pleasant working conditions
- opportunity for growth/advancement
- pay
- job security
In addition to the internal
factors that make employees want to leave or stay, there are also outside
factors that can influence your turnover. You can't do much about these factors
but what you can do is try to make the job as desirable as possible to minimize
the chance that external factors will lure your workers away.
To minimize unwanted turnover,
give employees perks that are perceived by them as benefits that "make or
break" a job. Trade on your strong points. Job perks like flexible hours
or better-than-average benefits might keep employees in a job that they would
otherwise leave. Attempt to make work fulfilling and rewarding for your
employees.
Sometimes the jobs that you have
may not be particularly exciting or offer a great potential for growth, but
they are still important and must be done. So how can you handle this
potentially sticky situation? Some possible options are to hire
temporary employees, or to use part-time workers who are simply
looking for a low-effort paycheck.
"When employees feel
underappreciated, undervalued or dismissed, or oppose the way the boss ... runs
the department, it can lead to disconnection and apathy," Oropeza Randall
told Business News Daily. "It's poison to the workplace."
No matter what the issue is, a
lack of communication between both parties will do more harm than good. If your
professional relationship with your boss or employee is causing conflict in
your day-to-day job, the best course of action is to face the problem head-on.
Here are a few basic tips to help you get your workplace relationships back on
track.
What employees can do
The first step to correcting a
bad relationship with your employer is figuring out how to approach the boss.
Oropeza Randall noted that this may be more difficult to do if your boss is
always stressed or doesn't have an open-door policy, but regardless of his or
her communication style, it's best to remain calm and professional when
broaching a sensitive subject.
If the issues you're having with
your boss are policy-related, Mazur advised documenting your concerns and
thinking about them from an employer's perspective before bringing them up.
"Were summer hours
suspended because the company lost a huge client?" Mazur said. "Are
telecommuting programs being cut simply because the company wants people to
have more face-time? Are people not getting raises companywide because of
budget cuts? Employees who understand the motivations behind the programs that
were enacted — or the lack thereof — can approach the situation in a
diplomatic, responsible way that demonstrates concern for both the company's
well-being as well as their own."
Bill Peppler,managing partner of
the staffing firm Kavaliro, encouraged
employees to address issues with their bosses and co-workers in a professional
and respectful manner.
"Have a solution to the perceived
problem, which can be much more proactive than something that may be set up as
a complaining session," Peppler said.
When you do speak with your
boss, Oropeza Randall reminded employees to use "I"-focused phrases,
instead of "you" or "they," to avoid pointing fingers. For
example, "I am concerned that ..." or "I feel this way when
..." can be much more effective and professional-sounding than "They
made me feel ...," which tends to sound like you're trying to shift the
blame, Oropeza Randall said.
"Be prepared to back up
your concerns. Show that you have done what you could to rectify the problem
yourself."
What bosses can do
If an employee has a problem
with you or your management
style, he or she may not feel comfortable enough to bring it up with
you directly — at least not right away. When they do finally approach you about
an issue, it's your responsibility to do something about it.
"Oftentimes, [bosses] don't
know or aren't in touch with issues that employees may experience," Mazur
said. "So, once an employee approaches his or her boss to address a
concern or an issue, the onus is on the boss to resolve the issue as best as
they can. This can be by providing an honest answer, finding a suitable
compromise or implementing a change for that employee."
Though your employees may sound
like they're complaining, it's important to truly listen and be patient: The
issues they're bringing up to you are usually valid, Oropeza Randall said. She
also noted that bosses should make a point to ask their staff for regular
feedback.
"Don't forget to ask for
their opinion once in a while — they are your eyes and ears on the ground, and
you can bet that they have a pretty good idea of what's going on. They can help
you."
What everyone can do
Every workplace has times when
staff relationships are less than perfect, but if everyone at the company makes
a commitment to build better relationships, the more likely it is that there
will be higher productivity, retention and employee
satisfaction.
"Employees and bosses
should aim to develop a strong relationship rooted in mutual trust and
respect," Mazur said. "If there's a concerted effort from both
parties to invest in and nurture the relationship, then both employees and
bosses are more likely to be engaged and in sync with each other's goals,
objectives and expectations. A solid relationship between boss and employee
also pays long-term dividends for the employer. Happy employees tend to be more
engaged, motivated and productive."
