Wednesday, Oct 09 2019

How Great Leadership Can Reduce the High Cost of Turnover

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How Great Leadership Can Reduce the High Cost of Turnover

Let’s face facts; turnover is expensive. When you lose an employee, you have to deal with a range of hard and soft costs. This includes everything from advertising the vacancy to spending time interviewing to lost productivity caused by being shorthanded. 

While a degree of turnover is mostly unavoidable, some things can help. Many causes of turnover are within a company’s control, particularly when it comes to organizational leadership. 

Most people have heard the adage that people don’t quit jobs or companies; they quit managers. Poor leadership can negatively impact retention, directly impacting a company’s bottom line. 

However, great leadership can also reduce turnover. When managers are capable and well-respected, professionals are more likely to stay for the long-term. As a result, turnover-related costs diminish. If you want to know what your leaders can do to improve retention, here are some tips to get you started. 

Train Your Managers 

Few managers receive formal training in leadership. Instead, they simply move up into the position and then are left to their own devices. 

By taking the time to train your leaders in appropriate and effective management techniques, you are making them more capable. Plus, you can correct any issues or missteps that might be leaving poor impressions on their team, ensuring you don’t lose top talent merely because a problem manager was going untrained. 

If you aren’t sure where to begin, consider starting with the delivery of feedback. When a manager doesn’t know how to address a team member’s poor performance, they may resort to ineffective approaches, like belittling the employee, making the issue personal, or allowing their emotions to dictate the tone of the conversation. Additionally, they might not know how to put together a plan that can help the worker improve, something else that will lead the employee to become frustrated and possibly leave. 

 

Promote a Cultural Shift 

Creating a workplace culture that supports effective leaders doesn’t start at the bottom; it starts at the top. If you want to reduce turnover, make sure that senior leaders are committed to improvement and are willing to change themselves if their approach isn’t ideal. 

Over time, you’ll be able to build a people-focused mindset that enhances job satisfaction and breeds loyalty. Usually, the first step is to examine how every manager leads, concentrating on the techniques they use and not just their results. This allows for an honest look at how members of the leadership team are acting, empowering the organization to make changes if the need arises. 

Research shows that employee satisfaction and retention are dependent on having strong, effective, optimistic, and enthusiastic leaders. If any of your managers are resistant to the new culture, then you may need to consider replacing them if you want to ensure that turnover is reduced. 

 

Find Out How You Can Reduce Turnover From The Armada Group

Ultimately, the quality of a company’s leadership has a significant impact on retention. If you’d like to find out more about how you can reduce turnover, the staff at The Armada Group can help. Contact usto discuss your questions with a member of our skilled team today and see how our retention expertise can benefit you.