Turnover is a reality. People leave jobs every day for various reasons, sometimes personal, sometimes because they want a change. Numerous studies have outlined that money may be a contributing factor, however rarely the only reason someone is leaving an organization.
People who are happy at work and enjoying the company culture especially when the company promotes “from within” are less likely to contemplate new opportunities as they see others getting promoted. Great morale boost!
Besides the obvious cost of recruiting, turnover often impacts morale within the organization and ultimately financial results.
The “learning curve” can take up to a year or more to fully understand the culture, the market place, the community and build a performing team.
New teams often are storming, then norming and ultimately performing. Team building and relationships take time to develop. In the meantime financial performance can be silently impacted.
Leadership and company culture are often the main cause of turnover. While exit interviews are a best practice, they don’t always reflect the real root of the problem. We know that people don’t want to burn bridges and prefer to leave quietly.
Investing into training labor to our standards and culture is costly and losing employees means starting all over again. Losing performing leaders is even a greater cost.
Replacing a leader who has built and developed relationships in the market is no easy task. Relationships follow the leader and do not remain at property level. Why does it matter? Because it can directly impact our bottom line. It may take a year or longer to see the impact and then rush to rectify but the loss may be significant.
Years of investment in a leader can be lost overnight when the leader leaves. Not only the leader’s relations but their knowledge and understanding of the business accumulated over the years vanishes. That cost is rarely taken into consideration.
Employee retention should remain a top priority when setting up company goals. As I learned at my last Caribbean post, people return for people, then may be for the product. While we eliminated most of the turnover, it took 4 years to build a stable team that felt like family. Property ratings and reputation online positively impacted the bottom line making the property successful.
People are precious. Take good care of them… your bottom line is at stake. ¤
By: Olivier Bottois