Leadership Barometer 40 Turnover

March 2, 2020

Is employee turnover killing your company? Turnover is one of the most significant, and avoidable inhibitors of profit. The US national average for turnover usually runs between 2-3% per month, whereas the top 100 companies often have a turnover rate of only 2-3% in an entire year.

In this article, I put a spotlight on the turnover problem and offer some antidotes that are common sense but sometimes not common practice.

For professionals, the cost of replacing an employee is roughly the annual salary of the individual. That means a company with 1000 people, each with an average annual salary of $48K, will lose more than $17 million per year due to turnover. These costs go directly to the bottom line in good times and bad.

Even in periods of high unemployment, turnover is still a problem for most groups. When jobs are scarce, workers may not leave immediately, but they are quietly planning on exiting once the job market improves.

One recent estimate is that 40% of workers are unhappy and plan to move within the next year if jobs become available (National Labor Statistics). That would mean a dramatic rise in turnover costs and a significant shift of the best talent from organizations with poor practices to those with stronger cultures.
How can we fight this needless drain? Here are seven key factors that can help you reduce turnover in your organization:

Supervision

When people decide to leave an organization, it is most often the result of dissatisfaction with their direct supervisor. The most important thing to improve is the quality of leadership at all levels. Teaching supervisors and managers how to create the right culture makes a huge difference in turnover.

Unfortunately, when money is tight, often the first thing that gets cut is training. Improving leadership at all levels needs to be a continual investment, not a one-time event when someone gets promoted to a supervisory role.

Supervisors who are well trained recognize their primary function is to create a culture where people are engaged in the work and want the organization to succeed. These people rarely leave because they are happy where they are.

Compensation

Pay is often cited as a reason for people leaving an organization. Pay may be a factor in some cases, but it is often just the excuse. What is really happening is that the work environment is intolerable, so the remuneration for the grief to be endured is not a good tradeoff. We need to teach managers to improve the trust level within the organization.

High trust organizations can pay workers non-inflated wages and still have excellent retention rates. There are numerous examples of this. One of them is Zappos, where they have such a great culture, that when employees are offered $2000 to leave, they do not take it.

In Drive: The Surprising Truth About What Motivates Us, Dan Pink points out that the relationship between pay and motivation is not what most people think. He cites several studies that show a pattern where higher pay can actually lead to poorer performance.

Pink advocates paying people enough so that the issue of money is off the table. Then three other conditions, Autonomy, Mastery, and Purpose, will take over as the key drivers to satisfaction and motivation, and therefore, retention.

A better future

Another key factor that causes people to leave is lack of a path forward. Employees who can visualize some pathway to a better future will generally stick around to experience it. Training and development are a key enablers for people to know there is a brighter future. Cross training is a particularly helpful way to have employees feel they are being developed to be more important to their organization. Cross training also helps make the work environment more interesting.

A family atmosphere

If you read about the culture of the top companies worldwide, there are many common themes. One of these is that employees describe their work associates as their extended family. They cherish the relationships with their co-workers. Sure, there will be some squabbles and an occasional lecherous uncle, but the overarching atmosphere is one of a nurturing and caring group of people similar to a family. Who would want to leave that environment?

Freedom

Enabling people to do their own work without being micromanaged is a characteristic of organizations that are good at retaining people. Nothing is more irritating than being ordered to do things in a certain way by a condescending boss who does not really understand the process as well as you do.

The ability to use one’s own initiative and creativity to get the job done right helps build self esteem, which is a key ingredient in the retention of people.

Recognition

Knowing that someone cares about you and recognizes your efforts and accomplishments goes a long way toward building employee loyalty. A loyal employee is not out there looking for another position. Instead, he or she is thinking about how the organization’s success can be enhanced through even more effort. The collective muscle of thousands of employees who each feel that way is amazing to behold.

Safety

Many organizations live on the edge of impending disaster. The competitive world has forced legions of companies to downsize on a regular basis simply to survive. When employees witness the revolving door that occurs as a result of things they cannot control, you can’t blame them for wanting to find a safer mode of transport through their career.

If the other suggestions above are followed religiously, then the organization will have a lower risk of having to lay off people, so they will enjoy a lower turnover rate.

These seven factors are not an exhaustive list, but I contend that groups who focus on these seven conditions and understand the dynamics will have consistently lower turnover rates, saving millions of dollars each year. That advantage is sustainable and scalable. It just requires leaders at the top who are skillful and relentless at applying these principles.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of: The Trust Factor: Advanced Leadership for Professionals, Understanding E-Body Language: Building Trust Online, and Leading with Trust is Like Sailing Downwind.


Leadership Barometer 38 Better Meetings

February 17, 2020

What is the biggest waste of time at your place of work? For most professional employees, the answer is, “meetings.”

Each of us has experienced frustration with ineffective meetings. Most of these are face-to-face situations where a bunch of people gather around a conference table with an objective to accomplish something.

Meetings also happen on the phone and online; the venue does not matter. It feels like the “process” is painfully slow, and the progress is difficult to appreciate.

If you have not experienced this, check your pulse; you may be dead.

More productive Meetings

Let me start with a question. What is the most precious commodity in the world? Stop reading and think about this question. I really want you to ponder what is precious. Is it “love,” “money,” faith,” “family,” “freedom,” “health”? Give it some real thought before you read on.

To answer the question, how would you define “precious?” You might equate it with value in terms of intrinsic or extrinsic reward. You might view it in a social or family context.

I believe there are two factors that make something precious: how difficult it is to obtain, and how important it is. It is the old “supply and demand” analysis. If something is in great demand, but is extremely scarce, it will be incredibly precious.

Take diamonds, for example. They are highly prized by human beings (not sure why) and they are extremely difficult to find (because they look like regular rocks in their natural state and there are so few of them.)

For example, there is a story told by Earl Nightingale about a poor farmer in Africa. He was unable to sustain his family because the soil on his farm was too arid. He tried to grow crops for years and tried to irrigate the land, but the soil was too weak.

Finally, he heard of the discovery of diamonds in a mountain region in another area. He sold his farm and moved to the mountains to prospect for diamonds. He never found any and his family perished.

Meanwhile, the person who bought his land for a pittance found an interesting rock that he took home and placed on his mantle. A couple years later, a visiting geologist recognized the kind of rock and asked the farmer if he knew what it was.

To his amazement, it turned out to be the largest diamond ever found in Africa. Further, the property was replete with similar rocks. It turned out to be the richest area for diamonds in the country.

So, the original farmer was literally surrounded by “acres of diamonds,” but did not realize it. He went to seek his fortune elsewhere and perished with his family due to starvation.

Leaders in the workplace are also surrounded by acres of “diamonds,” but we may not realize it. The diamonds are the people in the organization.

If treated right and exposed to the right environment (like polishing) nearly every person will turn into a valuable gem for the organization. The trouble is, most leaders, just like the original farmer, fail to realize the incredible value that surrounds them every day. What a crime.

If you will accept the “supply and demand” argument for what makes things precious, let’s explore what is the one thing in this world that is truly scarce. What is it that we cannot get more of no matter how we try.

Is it love? No, we can get more of that. Is it money? Certainly not. Is it any kind of metal or mineral? No. Is it faith? No, we can increase that by changing our viewpoint. I submit it is time.

Oh sure, we can increase our total time on earth by improving our health risk factors, but I am talking about the time we each have every day. We each get exactly 24 hours every day. Nothing we can do will increase that. No one gets less, and no one gets more.

We all want more time desperately, but none of us can get more of it on a daily basis it. It is fixed. Therefore, by the law of supply and demand, time is the most precious commodity.

What does this have to do with meetings? Well, if you are like most people, one of your top time wasters is meetings. We need to make them more efficient and productive.

If we do this well, we have more time for the other important things in life. In fact, by increasing our effectiveness at meetings, we can actually “manufacture” time for later use. We can “Save time in a bottle,” as Jim Croce put it.

Would that be worth it? Well, that is probably the easiest way to get some more of the most precious commodity for yourself and your team. Let’s examine some of the typical time wasters in meetings and suggest some antidotes. We’ll start with the granddaddy of them all.

Griping

Griping is the most significant time waster in meetings. Think about it. You know the routine. Everyone arrives at the meeting with their head full of issues and problems they are dealing with in their working world.

As the “early birds” are patiently waiting (by the way, having people arrive late is another huge time waster) for the late members, someone says something like, “Can you believe they are increasing our medical deductions again?”

That gets someone else to chime in on how unfair it is, and pretty soon the floodgates are open. Out pours fresh steaming venom onto the table.

When everyone has finally arrived and the group is immersed in self-pity and derogatory remarks about the cost of medical insurance. If gone unchecked, this can go on for most of the meeting, completely usurping the original agenda.

The antidote to this waste of time rests with the leader. He/she is responsible for keeping the agenda and not letting the meeting lapse into a gripe session. An easy technique is to acknowledge a need for the group to do some venting, but put a “stop loss” on it.

The leader might say, “It looks like there is a lot of energy around the medical deductions. How much time do we want to spend on this subject before we launch into the positive things that must be accomplished in this meeting?”

The group might agree to spend 5 more minutes venting. It is now up to the leader to stop the discussion after the 5 minutes and say, “OK, we all agreed to move on after 5 minutes. Any more gripes about the benefits will be done outside this meeting. Let’s move on to the agenda and make some positive steps toward our vision.”

If people persist in venting, it is up to the leader to shut this down.

Have an agenda

An agenda is very important for any meeting. If it is worth getting everyone together, it is worth a few minutes to set the topics and objectives for the meeting. This can prevent wasting time when the team wants to wander off topic. Again, it is up to the leader to keep the group on task.

Summarize frequently

An often-ignored technique in meetings is the periodic summary of decisions. This can be a real time-saver. After 10 minutes of discussion on the new safety policy, the leader might say, “Let me summarize this discussion. We seem to be agreeing that we will set a new goal of zero lost time accidents for the next quarter. Is everyone on board with this decision?”

If the entire group agrees, then move on to the next topic. Have the notes indicate a decision was made by the group. If this step is omitted, there is no firm commitment to the decision.

People will talk around and about a topic and everyone will have their own opinion of the outcome. You can leave a meeting with wide variations in people’s minds about what actually happened. Summarizing each point as it is made, prevents this problem.

Summarizing also puts a cap on each topic, so the group moves through the agenda efficiently. The role of the leader is to facilitate the process. Done well, this will maximize the benefit of the time spent together.

Handling opposing views

Disagreements can create an incredible waste of time. A point is made, then someone offers a counterpoint. This lapses into a discussion back and forth about the issue. It can, and often does, become acrimonious.

As people “dig in their heels” to defend their position, the argument becomes more intense. Often it gets personal with statements like, “you are always trying to harpoon everything we are trying to do in this team.”

The crime is that, many times the individuals are not that far apart. They are just not listening to each other. I have been in meetings where two individuals spend a lot of time in “violent agreement” with each other, but neither of them realizes it.

Reverse roles

There are two antidotes for this problem. First, get the opposing parties to express the position of the other person in their own words. That will uncover if the argument is a “tempest in a teapot.” It also ensures that each party really understands the opposing viewpoint.

Agree to Disagree

The other technique is the “Rule of Three.” If the point- counterpoint goes on for three iterations, it is unlikely either party is going to “win” the argument. This is the time for the leader to say, “I think you two should agree to disagree on this point. It is evident that neither of you are going to sway the other, so let’s table this discussion or take it outside so we can get back to the agenda.”

Using the Rule of Three can save huge amounts of time in meetings.

Be Punctual

The leader is responsible for starting and ending each meeting on schedule. It is impolite to arrive late for meetings. As a leader, you can stop this behavior simply by not waiting for the lagers.

Make sure there are some important decisions at the start of the meeting. If someone comes in late, do not go back and review what was already done; let the inconsiderate person catch up after the meeting.

I use a technique in my on-ground classes where I go over the hints for the next week’s assignments at the start of the class. Once I had a tardy student turn in the wrong assignment. She came to me and complained that I did not explain the rules well. I told her that the rules were explained at the start of the previous class, but she was not in attendance at that time. She quickly got the message.

The same rules apply in the online environment. If you make a commitment for the start of a meeting at 8 pm, be there at 8 pm. Recognize that there are family or personal emergencies that can make that impossible in rare instances.

The problem is that some people have a tendency to excuse themselves from their obligations on a regular basis. This behavior needs to be extinguished by the team. We need to be sensitive to real emergencies, but intolerant of those who habitually make excuses for holding up others.

These are only a few of the rules to make better use of time in meetings. Most of these are common sense ideas, but they are often forgotten in the normal work environment. The best way to make sure you are not wasting time is to remember how incredibly valuable it is, and act that way.

The preceding information was adapted from the book The TRUST Factor: Advanced Leadership for Professionals, by Robert Whipple. It is available on http://www.leadergrow.com.

Robert Whipple is also the author of Leading with Trust is like Sailing Downwind and, Understanding E-Body Language: Building Trust Online. Bob consults and speaks on these and other leadership topics. He is CEO of Leadergrow Inc. a company dedicated to growing leaders.


Successful Supervisor 46 Mastering Work Life Balance

October 1, 2017

One of the most vexing problems faced by supervisors is the issue of work-life balance. Dedication to job and career is a critical element for any supervisor, and since the number of issues that need attention is seemingly infinite, there is a tendency to work too hard and too many hours.

This article will share some ideas that may be helpful at creating a better balance.

Keep Things in Perspective

It is easy to lose perspective and let work issues become an overwhelming commitment of your time. Actually, I believe it is a form of addiction that sneaks up on you when you aren’t looking.

It is all very well intended at first, but if left unchecked, it can take you down a dangerous road that can rob you of a vital part of your life. Here are some tips that may be helpful to remember.

1. Pay attention to what is going on

We can get sucked into a life of continuous overwork without even realizing it.

Recently I found myself way overloaded and quit a job when my employer proposed to double my already oppressive workload without any additional form of compensation.

The shock of it made me realize that I had long ago crossed the line of the work I am prepared to do for the benefits received. If I had not been shocked into that realization, I might still be working there.

The lesson is simple, but difficult to do. Take stock every year of the amount of time you are devoting to work and ask if it is reasonable. If not, take steps to correct the problem.

2. Don’t let them nibble you to death

If you are working 55 hours a week, it is easy to get you to extend to 57 hours. If you are working 80 hours a week, then 82 hours seems not so much of an added burden.

The way to prevent this kind of “scope creep” is to put a Stop Loss on your situation.

A Stop Loss is a term used in the stock market where you put in an automatic sell order in if the stock reaches a specific level. This rule helps you avoid a catastrophic loss when your attention may be diverted.

The equivalent of a Stop Loss with time spent at work might sound like this, “I realize there will be peak times at work where I need to put in more time in a particular week, but if it ever reaches XX hours a week, I am going to refuse the work.”

3. Go offline

Easy access to the internet has made it difficult to get away from work. Set some boundaries for when you are not accessible (even by phone) and stick to them.

If you consciously manage time for your personal life, then you will find it much easier to have one. If you ignore the issue, then you will likely slip toward overload a little bit each year until work squeezes out the vitality of life.

It is not uncommon these days to see a family huddled around the dinner table where everyone is looking down at their PDAs. It is equally common to have some members of the family texting each other rather than speaking out loud.

Try to avoid using devices during family time and actually speak to each other verbally. Kids may have a hard time with this one, but you may be able to hold a rule.

4. Don’t work when you are resting

We all need good interrupted sleep each day to be able to perform at our best. Shut off your phone ringer when you are sleeping and just let it go.

Supervisors do understand the need to rest, but sometimes they feel the world will quit turning if they are not personally involved in every action. If you allow abuse of your rest time then people will have no compunction about calling you at all hours.

The other half of this equation is that you need to delegate and have faith in others in your group to carry on without you when you are unavailable.

If you insist on being involved in every decision, not only are you failing to develop and trust your people, but you are losing a lot of sleep.

Make Sure You have a Variety of Interests

It is easy to become so fixated on work that other parts of our life are squeezed out. The antidote to this problem is to maintain a variety of interests and intentionally carve out time to feed each of them.

Sometimes it feels like if you could just focus exclusively on work, then you could get it all done. Unfortunately, this is a trap. The work is infinite, if you let it be. Here are some tips to keep you well rounded.

1. Give family issues a high priority

At the end of your life, you will not be counting the number of 90 hour work weeks you put in, or even what you accomplished with all your dedication.

You will be thinking about the times you spent with family and friends, because those are the real meaning in our lives. Make sure you have at least one trip a year away from the hubbub of everyday life at work.

Make sure you participate in the activities of your kids and spouse. Sometimes you need to manage the time carefully, but it is important to participate.

2. Find ways to give back to your community

There are an infinite number of opportunities for you to help out other people. Find the equation that suits you and that you feel good about. I call this element your “give back ratio.”

You need to calculate how much time you are putting in exchanging your talent for money and how much time you are giving back to others.

There is no right or wrong answer to the calculation, but you have to ask yourself seriously if you are satisfied with your personal numbers. If the give back ratio is way too low, then you need to find ways to change it.

The same concept holds regarding money. You need to figure out whether you are giving back enough. It is a personal calculation that you don’t need to share with anyone else, but make sure you are in full agreement with your conscience.

3. Have a hobby that you really love

To fully get away from work, it is not enough to just turn off the phone. You need to find an activity that you enjoy so much that you become refreshed when you do it.

For me, mowing my lawn was always a great escape. (That may sound odd to some, but it is true.) Yard work for me has always been a way to get exercise while doing something that has an immediate payback.

It does not even need to be a physical release for you to benefit. Some people like to paint, or write, or sing. The idea is to have a few personal passions that you can indulge in to provide a balance from the constant grind of the job.

4. Make work into play

The old adage says, “If you love what you do, you’ll never work a day in your life.” I can mostly subscribe to that logic, although even if you love your work it can become a bit too much at times.

The basic idea is to find work that is intrinsically fun for you as well as challenging.

I know a CEO who calls this aspect her, “pants on fire – can’t wait to get to work” attitude. She works very long hours but has a ball doing it on most days. In fact, she has made “fun” one of the core values of her company. There is nothing wrong with that, because her company is incredibly successful.

Remember to Keep Yourself in Control

The bottom line of this article is that you need to be responsible for the balance in your own life. Don’t complain and grumble about the constant pressures of work crowding out the value from your life. Do something about it!

The world (and your boss) will gladly accept all of the “nose to the grindstone” work you are willing to put in. Just make sure you don’t grind your nose totally off!

Use the tips above to balance your life, and you will have many more fond memories when you are older. As a side benefit, you will likely live longer.

Recognize also that there are phases in life, and seek to manage your life for a good balance in each phase. You will likely ratchet up the percentage of time volunteering after you retire, for example, and that may present another challenge to get the right balance for your life.

In each phase of your life you need to test frequently if your various activities are in a healthy equilibrium.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Making Values Have More Value

May 25, 2013

square dealA vital function of leadership is to instill a coherent set of values in the organization. Notice I did not say the function is to “articulate” good values. Too many leaders believe the job is done when there is a set of values hanging on the wall. Unfortunately, that attitude does more harm than good because any hypocrisy in living the values ends up undermining the whole concept.

Leaders need to exemplify the values and talk about them at every opportunity for them to become firmly planted into the hearts of the organization’s people. Here are some tips that can make your values shine and create a foundational bedrock for the work of your business.

Create the values together

Values do not come from one person. They are aggregated into being through a process of creation and selection. There are literally thousands of values one could choose. Words like integrity, loyalty, respect, trust, and flexibility are frequent choices. Less often used, but equally effective are words like honor, dependability, family, innovation, and transparency. It is important for people in the organization to participate in the crafting of a master brainstorm list and the voting on how to winnow the list to a vital few.

Don’t have too many values

To be most helpful, values must reside in the hearts of the population and be simple enough to remember. It is a mistake to have a dozen or more values for an organization. Few people will be able to remember the entire set. I recommend five values, or six at the most. These will form the core of why we do what we do. Then it is a simple matter of doing a pareto vote to cull out the less important candidates from the longer list.

Talk about the values

Make sure everyone knows the values by communicating them at every possible opportunity. Say things like, “We have decided to admit our mistake because one of our core values is transparency.” As people hear a value reinforced every time it is modeled by leaders in the organization, it becomes stronger and more useful to the business.

Reinforce people who point out inconsistencies

If an action or decision does not appear to be consistent with a stated value, it is important to encourage and reinforce employees who point out the apparent contradiction. If employees are stifled or punished when they voice concern over a possible lapse, then they will clam up, and the values will quickly lose their potency for the organization. If people are rewarded for bringing up concerns, then the values will spring to life and remain vibrant.

Allow infrequent changes

Values form a bedrock for the actions of a community. It is important that these statements of intent have stability, and yet it is a mistake to be totally rigid. If an additional value to the current list would help clarify some common activities, feel free to add a new value with great ceremony. Beyond some number, it is wise to retire a less relevant value when adding a new one. This can be tricky because no value is totally useless. If you retire a value, make sure to state it is still important, just less frequently called upon in the current environment.

Reinforce actions consistent with the values

The easiest way to perpetuate actions consistent with the values is to reinforce people when the follow them. A simple thank you is not sufficient reinforcement here. The conversation should sound more like this, “That was a great point Martha. When you recognized Ed for not backing down in the face of pressure from the angry employee, you demonstrated consistency, which is one of our key values.”

The magic in having values is teaching all people to model them every day, but that is only half of the job. You must make the connection between actions and values highly visible at every opportunity to ensure the values drive the right behaviors far into the future.


Turnover – 7 Tips

October 21, 2012

Is employee turnover killing your company? Turnover is one of the most significant, and avoidable inhibitors of profit. The US national average for turnover usually runs between 2-3% per month, whereas the top 100 companies have a turnover rate of only 2-3% in an entire year (Fortune 2012). In this article, I put a spotlight on the turnover problem and offer some antidotes that are common sense but sometimes not common practice.

For professionals, the cost of replacing an employee is roughly the annual salary of the individual. That means a company with 1000 people, each with an average annual salary of $48K, will lose more than $17 million per year due to turnover. These costs go directly to the bottom line in good times and bad.

Even in periods of high unemployment, turnover is still a problem for most groups. When jobs are scarce, workers may not leave immediately, but they are quietly planning on exiting once the job market improves. One recent estimate is that 40% of workers are unhappy and plan to move within the next year if jobs become available (National Labor Statistics). That would mean a dramatic rise in turnover costs and a significant shift of the best talent from organizations with poor practices to those with stronger reputations.

How can we fight this needless drain? Here are seven key factors that can help you reduce turnover in your organization:

Supervision – When people decide to leave an organization, it is most often the result of dissatisfaction with their direct supervisor. The most important thing to improve is the quality of leadership at all levels. Teaching supervisors and managers how to create the right culture makes a huge difference in turnover.

Unfortunately, when money is tight, the first thing that gets cut is training. Improving leadership at all levels needs to be a continual investment, not a one-time event when someone gets promoted to a supervisory role. Supervisors who are well trained recognize their primary function is to create a culture where people are engaged in the work and want the organization to succeed. These people rarely leave because they are happy where they are.

Compensation – Pay is often cited as a reason for people leaving an organization. Pay may be a factor in some cases, but it is often just the excuse. What is really happening is that the work environment is intolerable, so the remuneration for the grief to be endured is not a good tradeoff. We need to teach managers to improve the trust level within the organization. High trust organizations can pay workers non-inflated wages and still have excellent retention rates. There are numerous examples of this. One of them is Zappos, where they have such a great culture, that when employees are offered $2000 to leave, they do not take it.

In “Drive: The Surprising Truth About What Motivates Us,” Dan Pink points out that the relationship between pay and motivation is not what most people think. He cites several studies that show a pattern where higher pay can actually lead to poorer performance.  Pink advocates paying people enough so that the issue of money is off the table. Then three other conditions, Autonomy, Mastery, and Purpose, will take over as the key drivers to satisfaction and motivation, and therefore, retention.

A better future – Another key factor that causes people to leave is lack of a path forward. Employees who can visualize some pathway to a better future will generally stick around to experience it. Training and development are a key enablers for people to know there is a brighter future. Cross training is a particularly helpful way to have employees feel they are being developed to be more important to their organization. Cross training also helps make the work environment more interesting.

A family atmosphere – If you read about the culture of the top companies worldwide, there are many common themes. One of these is that employees describe their work associates as their extended family. They cherish the relationships with their co-workers. Sure, there will be some squabbles and an occasional lecherous uncle, but the overarching atmosphere is one of a nurturing and caring group of people similar to a family. Who would want to leave that environment?

Freedom – Enabling people to do their own work without being micromanaged is a characteristic of organizations that are good at retaining people. Nothing is more irritating than being ordered to do things in a certain way by a condescending boss who does not really understand the process as well as you do. The ability to use one’s own initiative and creativity to get the job done right helps build self esteem, which is a key ingredient in the retention of people.

Recognition – Knowing that someone cares about you and recognizes your efforts and accomplishments goes a long way toward building employee loyalty. A loyal employee is not out there looking for another position. Instead, he or she is thinking about how the organization’s success can be enhanced through even more effort. The collective muscle of thousands of employees who each feel that way is amazing to behold.

Safety – Many organizations live on the edge of impending disaster. The competitive world has forced legions of companies to downsize on a regular basis simply to survive. When employees witness the revolving door that occurs as a result of things they cannot control, you can’t blame them for wanting to find a safer mode of transport through their career. If the other suggestions above are followed religiously, then the organization will have a lower risk of having to lay off people, so they will enjoy a lower turnover rate.

These seven factors are not an exhaustive list, but I contend that groups who focus on these seven conditions and understand the dynamics will have consistently lower turnover rates, saving millions of dollars each year. That advantage is sustainable and scalable. It just requires leaders at the top who are skillful and relentless at applying these principles.