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.


Body Language 45 Children

September 13, 2019

The study of body language would not be complete without drawing specific attention to the amazing movements of children.

As we mature, human beings pick up all kinds of norms and inhibitions. We no longer exhibit the reckless freedom expressed by young children. Most of that restraint is brought about by adults who teach us to “fit in” and not be wild.

The cultural differences are one sign that a good portion of body language is learned from elders. Young children do not have caution baked into their movements; they are free to express how they feel at any moment, and really don’t care about being “normal.”

If you ask an adult to mimic the movements of a child, you will see it is nearly impossible to do it. Here are some specific ways children’s body language is unique:

Facial delight and wonder

Kids find it impossible to suppress their glee in their facial expressions. They also have no inhibition for expressing hurt or sorrow.

Adults have learned to partially hide their true feelings most of the time. Still, when conditions are extreme, like in grief, or when winning the lottery, we revert back to wearing our emotions on our faces.

Wiggling

Kids do not stay still. They need to be moving every part of their body in reaction to what is going on around them.

You can witness the erratic and joyful movements of kids when hearing a jig played on the violin for the first time. The upbeat music translates into their movements by instinct, and their facial expressions display sheer delight with no inhibitions.

Arms

Children fling their arms out to the extended position at the drop of a hat. It is just part of expressing their feelings with everything they have. Most adults are more restrained with their arm movements, but there are some exceptions, like Elizabeth Warren.

Legs and feet

Particularly in reaction to upbeat music, kids shuffle their feet wildly and get a lot of movement in their rear end. It is as if the music is emanating directly out of the child. They only stop when the music does or when a parent tells them to knock it off.

Tumbling

Since kids are low to the ground, they have no compunction about rolling around on it or the floor. It doesn’t matter if it is a type of somersault or a primitive form of break dancing, since kids don’t worry about dirt or grass stains, they are free to show emotions by interfacing directly with terra firma whenever they feel like it.

Swimming

Most children love the freedom of swimming or frolicking in the water. The joy comes from the buoyancy of a lower gravitational pull. They act as if they are gliding in space where there is no gravity and they love to discover all kinds of weird positions, much to the alarm of worried parents watching from the side of the pool.

So what is the point of this article? First of all, you can gain a lot by noticing the difference in body language between children and adults. Ask yourself if it would be fun to be as uninhibited as a child, at least in some circumstances.

Don’t mock an adult who occasionally reverts to a childlike movement. Celebrate the person for having the courage and flexibility to enjoy life the way a child does. Also, try to allow your children the freedom to move like kids from time to time without imposing adult rules at every moment.

The significant benefit to you is that you have the ability to regain some of the pure joy of living if you allow yourself become unshackled and practice some childlike body language on occasion.

This is a part in a series of articles on “Body Language.” The entire series can be viewed on https://www.leadergrow.com/articles/categories/35-body-language or on this blog.


Do Not Mix Empowerment and Morale

May 11, 2013

Girl with thumbs upMost of the time morale and empowerment are linked, but they do not always have to be. When we think of empowered people, we imagine individuals who are allowed to figure out how to do their work the best way they know how. When we think of people with high morale, we envision individuals who feel really good about what they are doing for some reason.

I can imagine a situation where my morale would be high but I am not empowered very much. Suppose I am stuffing envelopes at the United Way Office. I have very little freedom to put creativity into the job. It needs to be done just exactly the prescribed way each time. I have very low empowerment and a huge stack of routine work, yet I have a feeling that I am making a contribution to a good cause, so my morale is very high. As a result of my work, many families will be receiving the services they need. My heart is light as I am doing banal work that is incredibly tedious.

On the flip side, imagine I am given an assignment to run the weekly parts inventory as a substitute for the regular technician. I am given the freedom to organize the job and get it done any way I wish. I can come in during evening hours or on the weekend when things are quiet if I like. I am not bound to do the job a specific way as long as I get the job done in a responsible way. My empowerment is pretty high. Unfortunately, I am not a numbers person, and I hate doing inventory. I think it is boring, and it feels like a prison sentence until the job is done. As I launch into the work, my morale is very low. I do not want to do it, yet I am empowered to make all kinds of decisions about how it will be done. In this case, we see high empowerment coupled with low morale.

Most of the time morale and empowerment occur at the same time, but it is a mistake to think this is always the case. The two concepts are different and are impacted differently based on what is going on in a particular case.


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.