The high cost of employee turnover can cripple any business, and with turnover rates skyrocketing across every industry, few aren't concerned. According to recently released Bureau of Labor Statistics, voluntary employee turnover in food service, hospitality, and retailing sectors is, by far, the highest: in the industries, predictably, that employ the greatest percentage of 16 to 24 year olds.

Many managers in these service-based industries are quick to point the finger at workers who are the least likely to commit to their jobs--those oddly attired, entitlement-minded, fickle youth of this emerging generation. It's easy to paint today's youth as inherently disloyal resume builders who are scant on work ethic and commitment. Blaming them, however, deflects any personal responsibility for the turnover pandemic and does nothing to solve the problem.

Ironically, when I see turnover rate reports for service-sector jobs, I often wonder why they aren't higher than they are. After all, young people know they can fight with the boss during the morning shift, quit before lunch, and have another job offer before dinner. Sure, it's a hassle starting a new job, but if your present job has become an even bigger hassle, then it's time to bolt. But this is only the tip of the iceberg of why today's youth aren't interested in playing the old "bleed the company colors" game.

Generation "Y's" have heard tales of people working at the same jobs for 40 years and retiring with little gold watches, but those stories are as relevant to them as an eight-track tape. Times have changed. Generation "Y's" have seen their parents outsourced, right-sized, and downsized by the very organizations they helped build. And their parents aren't the only ones affected by layoffs and payroll slashing. Just look at a recent maneuver made by the big Kahunas at Circuit City.

Seeking to reverse falling stock prices, the No. 2 electronics retailer in the U.S.(behind Best Buy) announced they'll soon lay off 3,400 workers--many of them teens and young adults--simply because they're making "above-market wages." Those affected will receive a severance package and the chance to reapply for their former jobs ten weeks later, naturally at lower wages. Although this move sent stock prices up 1.9 percent, the residual shift of employee morale, performance, and customer service will be anything but upward. Word will spread on MySpace of how this big box retailer treats teens and young adults, which will not only throw a kink in Circuit City's application flow, but also wreak havoc on sales for a brand that's perpetually trying to woo young consumers.

To be fair, Circuit City is not alone in this practice. It's part of a new way of controlling labor costs in the service industry. Employers determine the prevailing market wages for particular jobs in various geographic regions, and then find ways to make sure workers' salaries stay within that range, no matter what. In most cases, little or no consideration is given to employees' longevity, productivity, or quality of work. Ironically, these are the same decision-makers who frequently rant, "You just can't find and keep good young talent these days!"

The Take Away
There's no secret strategy to reducing turnover. To keep employees loyal, you must first demonstrate loyalty to employees. Reducing costly turnover and hanging on to your staff are not management tactics or strategies, but rather direct byproducts of how your organization values and treats its people on a daily basis. Virtually every company I've worked with over the past ten years has a pithy statement in their employee handbook or posted above the reception area boasting "we value our employees" or "our people make the difference." While all can cite examples of the lengths they've gone to for their top-level execs and managers, only a fraction can demonstrate that this commitment extends to employees at their front registers and in their loading docks, stock rooms, and parking lots.

It's challenging enough to get Generation "Y's"to envision a future in your organization, but if you're in the habit of checking market conditions to determine if you're paying front liners more than is absolutely necessary, you'll continue to face a turnover battle you'll never win.
Remember, to this amazingly connected and "always-on" generation, word of a good employment situation spreads fast, but word of someone "getting screwed over by their company " spreads even faster.

If you would like to learn more about specific tools that you can use, to assess employee satisfaction, give us a call
Toll Free: 1-877-884-0051

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The Cost of a Haircut?

I need a new hair cutter. Oh, the one I'm using now is very good. She gives me the most consistently great cuts I believe I've ever had. She doesn't charge too much, is usually available. She has a fun personality.

Why am I dissatisfied? For the last thirty years I've seen the same process every time I get my hair cut. The cutter wraps some spongy paper around my neck, pulls an apron up tight, cuts and trims, unties the apron, removes the paper, then picks up a blower and BLOWS THE LITTLE SHARDS OF HAIR CLIPPINGS DOWN MY SHIRT.

I'm pretty much forced at that point to stop my day, go home, and shower just to make the itching stop. You know, I've mentioned to every person who's picked up a pair of scissors that they should trade in the blower for a shop vac, and remove the hair instead of hiding it inside my shirt where it will itch all the way to the shower.

Every one of them has listened to me complain, nodded in agreement, and then waited for their "complaining customer" to leave the shop so they can say what they really think of him.

"Snort. He expects us to change the way we work, just for him."

Yes. Yes, I do. And eventually, I'm going to start actively searching for a new cutter. The cost of change includes risk. I've mentioned before that sometimes people do business with us because it's too much trouble, or too much expense, to switch suppliers.

In this case, it's fear. Fear that I'm going to hate the next haircut. So, I schedule my hair appointments late in the day, and keep going back to a service provider that annoys me with each purchase.

But imagine the referrals, and word-of-mouth advertising you could create for anyone willing to change the way he/she works, just for the customer who asked for the change.

Are there customers that you're annoying with each purchase? With the right promise from a competitor, they're gone. Listen to them, now.

Whenever I begin a relationship with a new client, they almost always try to hide customer complaints, or deny customer complaints, or even justify why they are correct in what they gave the customer (and the customer is WRONG for complaining).

A customer complaint is valuable. Treat those complaining customers as if your business depends on making them happy. Either that, or be vulnerable to the first competitor who does.

If you would like to gain an accurate understanding of how well your staff heed the advice from customers, give us a call!
Toll Free: 1-877-884-0051