Effective Leadership - Staff Turnover and Counting the Costs

in Worker

As a manager one of the most important issues for you should be keeping an eye on your staff turnover. The sign of a true leader is one that is aware of how much the lack of good leadership will cost the organization that they are involved in. An exceptional leader needs to know how to motivate and retain their best employees.

This is because the cost of staff turnover to your organization or the business you own can be as damaging as producing bad goods or negative financial cash flow. Staff turnover is significant in terms of financial strains on your business as well as time and energy in training new workers, loss of experience and possible loss of business. In tough economic times this can have an even greater affect on the health of your company.

So, it would be in your best interests to have a strategic plan about reducing staff turnover.

Factors to take into consideration when planning a retention strategy

Financial Rewards

The concept that most people are motivated at work through money is outdated, money is not the main motivating factor for most workers; it is part of a series of motivational values that comes with the job. In fact there is growing evidence to state that more and more workers will not take jobs which are high in financial rewards and low in other rewards such as work life balance.

Company values

It is important to separate values from tangible assets such as responsibilities or Human Resources polices. Values are often much more the ethos which permeates the company, its reputation and what it stands for. For many employees they see the company values enacted through the Leaders of the organizations and it is this that they value or in some cases not value and will make a difference to retention of workers.

Who are your employees?

It is clear that the needs of the general workforce over time will change; workers today do not necessarily have the same aspirations of workers from the previous generation however you may have workers from different generations as employees in your company, in some cases working side by side or managing each other. It is important for an effective leader to be aware of what the needs are of their work force, and to bear in mind that each worker is an individual. It is also important to understand what company/ managerial behaviors might make an employee want to leave your organization.

So when finalizing your strategy, it might be helpful to consider your leadership style (including how your style pervades through your organization) in terms of a brand. What do you think your brand is currently standing for in your company and what are the key attributes of your brand which your best employees consider attractive and worth staying for?

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Gradle Gardner has 1 articles online

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Effective Leadership - Staff Turnover and Counting the Costs

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This article was published on 2010/03/31