Employee turnover is often a metric organizations view as having a negative impact on the organization.
But in a recent article in HR Magazine, Shari Lau discusses the potential impact of employee turnover in various situations, and how often it can have a positive impact on the organization.
If a poor performing employee quits, there is no risk of a wrongful discharge claim. But it can also be an opportunity for positive change for the organization.
In this scenario, the organization can:
1. Promote a current employee
2. Hire someone with greater skills
3. Evaluate the department for possible restructure
4. Realign the budget
If a poor employee is terminated, the impact for the organization can also be positive for most of the same reasons. In additon, a strong performance management system is evidence to leadership that managers are doing their jobs. It also helps to increase morale as employees see that their managers are only keeping employees who have satisfactory job performance. And new employees can bring a fresh perspective to an organization.
If a high performer resigns, there may be a temporary negative impact for the organization if it affects the ability of the organization to function properly. There are also costs associated with hiring and training a new employee. But it also provides the organization an opportunity to reevaluate its career and employee development and total compensation programs.
High turnover is a concern, but low turnover can also be a concern if it means that low performers are rewarded with continuing employment. Low turnover can also be a sign of stagnation within an organization, and begs the question, “Why are these employees not being hired by other organizations?”
Summary
Employee turnover cannot be seen as a negative or positive metric in isolation of other factors. The size of the organization, profit vs. no-profit, and stage of organizational growth are some of the other factors for consideration. But regardless of these variables, this metric can be used as a tool to aid the organization’s strategic planning and budgeting efforts.
Motivating employees properly is always important. But it is particularly important in an uncertain economic environment where people fear losing their jobs and have less loyalty to the organization.
1. Provide Pay for Performance: Provide incentive pay for top talent to motivate them to perform in their roles.
2. Offer Non–Monetary Rewards: Employees have different needs and values and so it is best to ask employees what kinds of non-monetary rewards are the most meaningful for them. Some may value telecommuting, unpaid time off, or flextime.
3. Don’t overlook intrinsic rewards such as career development opportunities within the organization.These can be more effective than monetary rewards.
4. Managers often try a “one size fits all” approach to a rewards program that is based on what motivates management. It is best to survey employees and design programs to fit the employees and the means of the organization.
There are two books out recently that talk about how the ubiqutious promotion of positive thinking and the pursuit of the American Dream have undermined America. In Bright-Sided – How the Relentless Promotion of Postive Thinking Has Undermined America, Barbara Ehrenreich begins by describing how after diagnosed with cancer, she was repeatedly bombarded with the message that having cancer was a gift. Grieving her loss of health became politically unacceptable in this environment espousing that with positive thought you can co-create your reality.
It is this same refusal to calculate the downside or worst case scenario (and perhaps greed) by our financial institutions, that resulted in the worst economic crisis since the Great Depression. Riding on the wave of positive thinking with the goal of financial prosperity, the financial institutions collaborated with individuals, allowing many to live beyond their means so that they were not prepared for any changes in their financial situation. Then with the economic downturn, many lost their jobs and were forced into foreclosure and bankrupcy. Those in the real estate and related industries were particularly hard hit, many through no fault of their own.
In an article in the NY Times, conservative columnist David Brooks discusses this book: Radical: Taking Back Your Faith From the American Dream. 26 year old David Platt, the author, who leads a megachurch in Birmingham Alabama. In the book he discusses his disillusionment with the corporation-like magachurches that offer what he refers to as “consumer Christianity.” This American Dream comes with a focus on the self which is contrary to the Judeo-Christian beliefs in the Bible. Religion and spirituality are no longer about human compassion, forgiveness, feeding the poor and caring for the sick, but more about “What’s God going to do for me today?”
What went hand in hand with the pursuit of material pleasures and the entitlement to financial and material prosperity, came the cry to find your passion in your work and your life. So we see people who are not happy doing a job well, contributing to society, and using their unique skills and abilities. They are not happy because of the impossible expectation that in this life you are entitled to always feel joyful about your work. Gone now is the satisfaction that comes from doing honest work using your skills and abilities, paying your mortgage, taking modest vacations and perhaps even sending your children to private schoools. We want more. The sky is the limit, we are told.
But wait – recent studies show that people are now saving more which, ironically, is helping to keep us in this recession. So perhaps in the next few years we will see a trend toward living in a modest home, and satisfied with the simple pleasures of having a job we do well, a regular paycheck and no credit card debt.
In a recent issue of a publication from the Center for Creative Leadership, they speak of the complexities of working in a middle management position.
These challenges fall into three categories:
1.Getting the top and the bottom of the hierarchy to work together. Top management sets the strategy, but unless that strategy is clearly communicated, it is difficult to get the bottom of the organization to work in tandem with the top. In addition to effectively communicating the strategy, the bottom of the organization needs to see how their jobs contribute to the achievement of the strategy.
2.Collaborating across the organization. You have to align and integrate work with your peers from other work groups to generate a shared commitment to broader organizational initiatives. Some of your work is shared, but you also have independent responsibilities. You compete for resources and manage groups that have very different agendas. You have many demands coming from different directions, and often little postive feedback.
3. Having a demanding job and demanding roles outside of work. You might be caring for children as well as elderly parents. You may have spouses and partners you want to spend time with, commitments to volunteer organizations and your community, while trying to live a healthier and fuller life.
Benefits of a Middle Management Position
But with challenges, your work is interesting and you have the opportunity to collaborate with experienced executives and peers. When effective, you can have a significant influence on the organization.
CCL research shows that managers who have multiple life roles tend to be more effective leaders than those who focus single-mindedly on work. Their life experiences in different areas feed off of each other and help them to develop as leaders while they improve their relationships outside of the organization.
Organization culture is defined as “a common perception held by the organization’s members’; a system of shared meaning.” A dominant culture expresses the core values that are shared by a majority of the organization’s members. In a strong culture the core values are intensely held and widely shared.
You need to choose an employer whose culture is compatible with your values and one in which you’ll feel comfortable. Here is a list of things that you can do to assess an organization’s culture.
• Observe the physical surroundings, including office furnishings, clothing worn by employees and hair length.
• Who did you meet and who do you think has input into the hiring decision?
• What is the style of the people you met? Is it casual or formal?
• Does the organization have formal rules and procedures printed in a policy manual? If so, how detailed are these policies?
• Ask questions such as, what is the background of the founders and current senior managers? What are their functional areas? Were they hired from within or outside of the firm?
• How do they integrate new employees into the organization?
• How does the person you would be reporting to define his or her job success?
• How do they define fairness in term of reward allocations?
• Who is on the “fast track” at the organization and what has put them there?
• Who is considered to be a deviant in the organization and how has the organization responded to this person?
• Can you describe a decision made here that was well received and one that didn’t work out? What were the consequences for the decision-maker?
• Can you describe a crisis or critical event that recently occurred in an organization? How did top management respond and what was learned from this experience?
Coping Strategies
If you think you are suffering from burnout, create a plan to nurse yourself back to health. The following lists contain steps you can take to get rest and relief from the constant stress that results in burnout.
At work:
• Take it slower, take breaks from work. Leave work a little earlier.
• Don’t strive for perfection, but for “good enough.”
• Use support services effectively and delegate when possible.
• Try to keep to a regular schedule, and don’t be constantly available to clients.
• Don’t take work home with you.
• Reduce your commuting time and leave the driving to others by taking public transportation when possible. This also has the positive affect of reducing air pollution.
• Take regular vacations from work. Long weekends once a quarter are good ways to avoid burnout without taking off long stretches of time. Don’t take work with you or check voice mail messages or e-mail when you are away.
• If you are unhappy with your job, determine what changes are needed and develop an action plan.
• Connect with nature daily- take a walk; eat your lunch outside in nice weather.
At home:
• Try to get 8 hours of sleep a night. We are a sleep-deprived society and this lack of sleep contributes to accidents, low productivity and mistakes.
• Get help with chores. Hire a housekeeper and someone to do yard work.
• Don’t be a perfectionist who strives for the Martha Stewart/Better Homes and Gardens look. You don’t have to be a gourmet cook and live in a designer showplace to be happy.
• Organize your household so the burdens are spread around.
• Eat healthy – three small meals every day, including fruits and vegetables, and healthy snacks. Drink planty of water. Eliminate or reduce your caffeine intake.
• Exercise regularly- aerobic exercise is a great stress release.
• Get help with childcare.
• Practice simple living techniques.
• Live under your means.
• Pay off your debt.
• Reduce your tendency toward consumerism. Buy only what your need or cannot live without. This will reduce trips to the store and save you money.
• Meditate.
• Practice yoga or other relaxation techniques.
• Listen to relaxation tapes.
• Play with your children and pets. They tend to center us and get us in touch with what’s important in life.
• Keep a journal.
• Listen to music. Spend no more than one hour a day watching TV or surfing the internet.
• Massages are also great ways to relax.
• Take Hot Baths with lavender essential oil.
• Practice your faith/pray.
Debbie@DandBconsulting.com
A recent report by Watson Wyatt Worldwide and the National Buisness Group on Health finds that employers are not taking measures to relieve the stress that employees are experiencing from long hours, a lack of work/life balalnce and fear of job loss. Health and productivity management programs, however, are keeping health care costs and absenteeism down.
The survey included 352 employers with 1,000 or more employees during the summer of 2009.
Specific findings include:
- Companies with the most effective health and productivity management programs had medical costs averaging 1.2 % lower than those employers who cut back on such programs, fewer lost days due to unplanned absences of employees, and higher average returns to shareholders.
- Although 78 % of respondents citred excessive work hours as a leading casue of stress, only 21 % said they were taking steps to address stress management.
- Employers report a higher use of health care benefits (40%), disability claims (35 %) and the use of employee assistance programs (50%).
- 78 % of respondents cited excessive work hours as a leading cause of stress among their employees, but just 21% of them said they are taking steps to address this stress.
- Although 68 % of employers cited lack of work/life balance as a leading employee stress producer, only 38 % said they are taking action to combat this stress factor.
- 67 percent of employers cite fear of job loss as a leading cause of employee stress, yet only
41 percent of employers said they are addressing this issue.
If you are an executive, manager or HR Director, what is your organization doing to address the issues of work/life balance, long work hours and fear of job loss?
For more information on this report, see Staying at Work.
#1 Financial
Are current Time and Labor Management processes and systems designed to control spending and deliver ROI?
• WFM technology should drive cost reduction
• Plug any leakage
• WFM practices should help drive revenue
#2 Strategic
Are our WFM systems used daily to deepen follow-through on C Level
strategic goals at all levels?
• WFM rules and actions should be aligned to goals
• Use design reviews
• Measure the expected outcomes
• Map a course for evolution & mission success
#3 Operational
Has the process of labor management been deployed for maximum effectiveness and proven to contribute to operational success?
• We should up to date
• We include everyone & use everything
• We measure what’s important
• We connect operational goals to the application and people
#4 People & Positioning
Do we have the right people involved?
• The key players care about what’s most important
• Needed experts are included
• Someone is empowered to deliver change
• We understand our own value propositions
#5 Compliance
Do I understand my compliance risks?
• Rules and regulations are in force
• There are no gaps in Compliance Assurance
*From HCI.org
As the economy recovers, managing human resources will be central to a business environment as people go back to work. Of particular importance is the ability of the organization to attract, engage and retain the best talent available.
Many companies use metrics to measure “time to fill’ and “cost per hire.” But more organizations are now measuring “qualify of fill”. Some of the factors considered in this metric include:
• Employee retention
• Performance evaluations
• Employee promotions
• New hire surveys
Another quality calculation are using more frequently is based on the “net quality score.’ This metric measures the sum of all hires in the last year, minus those who scored in the bottom half of all employees at their first performance evaluation.
What is burnout? And how do you know if you’re suffering from it?
Burnout is defined as the various physical, emotional and mental reactions caused by repeated stress.
Effects of Stress
The negative affects of stress are documented by research studies. Prolonged, unrelenting stress can produce psychological and physiological consequences including:
Anxiety
Depression
Hypertension
Impaired Immune System Functioning
Increased risk of coronary heart disease and cancer
Who is at Risk?
Corporate downsizing has placed increased responsibilities on those who survive, adding more pressure and longer hours. Small business owners are at risk since there are fewer people to do all the work. Therapists, lawyers, health care professionals and others in the various service professions are traditionally at risk for job burnout. Also at risk are executives, and others who work long hours or get little fulfillment from their work.
With a greater percentage of single parent families and longer workweeks, more people today suffer from burnout. Single working parents are often stressed from the pressures of working the equivalent of two full-time jobs.
Certain personality characteristics often make some people more susceptible for burnout. These include perfectionism, idealism and workaholism. People with these characteristics sometimes have difficulty delegating and frequently feel that there is too much work for them to do. Service professionals can suffer from not setting limits with work hours and availability to clients, and from taking work home with them.
Symptoms of Burnout
How can you tell if your are suffering from burnout? If you are experiencing three or more of the following, you probably are.
Feeling overwhelmed
Having trouble making decisions
Short-tempered
Low energy-tired all the time
Loss of enthusiasm for work
Increase in use of cigarettes, alcohol and caffeine
Moodiness and irritability
Insomnia
Depression
If you think you are suffering from burnout, first determine if the main source of the stress is coming from work. Could it also be your home environment, family demands, your health, a relationship, or a combination of some of these? To gain clarity, keep a journal. Write down your thoughts daily.
Next Time:
Coping and Recovering from Burnout.
Executive Coaching 