There’s an old saying that you’ve probably heard about employee training. “What if I pay to train these people and they leave?”, the short-sighted one asks. “What if you don’t train them and they stay?”, responds the sage. One of the most expensive activities your business can experience is employee turnover. When employees leave, a piece of the company leaves with them. Their knowledge of work processes, clientele, things they do without thinking due to “muscle memory” and so on. Then there is the act of replacing them.
Hire too fast and you risk getting a culture mismatch, someone with the wrong work habits and/or someone who can’t step into the role and be reasonably productive. Sometimes you might feel “forced” to hire solely based on culture fit, which means you’ll have to give them time to grow into the job. Even when you find an experienced person who can step into the role, the expense is substantial. While working that process, there’s work that isn’t getting done, isn’t getting done as well or as quickly, or it’s getting done by someone who is already doing their fair share. The process of properly finding, vetting and eventually hiring a replacement for a lost team member is expensive when done right. When done wrong, the cost can skyrocket.
Sometimes, a place is so toxic for one reason or another that it is literally a revolving door. A couple of years ago, I visited a logistics warehouse that was losing 100% of their workforce every 30 days. Read that again and consider how a situation like that would impact a business. They weren’t losing the warehouse managers, but they were having to replace the entire staff every 30 days for positions actually doing the “real work” in this warehouse – that is, moving pallets around, driving fork lifts, dealing with the related paperwork and trucks. None of the people there on June 1st were there on May 1st. It was impressive that they managed to keep the place operating at all, particularly without sharply increased injuries. The investment in interviewing, on-boarding and training time had to be unbelievable.
Imagine being in that situation. It’s difficult to process the pain this would cause simply dealing with it one time, much less having to deal with it month after month.
While that warehouse was a real situation, it’s not normal. The turnover you experience is troubling enough. You hate to see it happen, even if you’re happy for the opportunity your quality people found. Even so, they were accomplishing something at your business, leaving you with a hole to fill. Do you really know everything they do? Do your people really realize everything they do? In some roles, it isn’t unusual to find work that gets done intermittently that can be forgotten. What work at your business is undocumented?
Even if someone doesn’t leave, they might get sick for a week. They might have to travel out of the country for two weeks. They might go fishing in the backcountry and spend a week in places with no cell coverage. How will your business survive that week? In my experience, a company can easily take a punch that only affects them for a week. Where you get into trouble is losing someone permanently, or even for a month. A parent gets sick, or someone has to have a knee replacement. If this happened to someone at your place, how would it affect production? Day to day operations? Management? If you had to replace your administrative person (assuming you have only one) for a month, would the replacement be able to step in and find documented processes and a list of all the things that must be done each week of the month?
Now extend that to your highly skilled people. Is their work documented? I know, I know. It seems like busy work… until you lose one of them. Or two. Or three. The timing of these things never seems to be kind even when it isn’t malevolent.
Extend that thought to your key employees.
Finally, there’s you. What doesn’t happen if you disappear for a month? Who makes sure people get paid? Who can sign checks and manage company funds? What else doesn’t happen? You get the idea.
Being prepared for employee turnover isn’t solely about being ready to deal with losing employees. It’s about building resilience for the situations that life brings.
Photo by stu_spivack