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 28 Lead Without Bullying

December 10, 2019

As I was having breakfast today, I was gazing out the window watching some robins chase each other around the back yard. I started thinking of the various animal species and the fact that in every group of animals, a certain amount of bullying behavior goes on.

It is a “survival of the fittest” world in the animal kingdom. Maybe that is why we humans often exhibit some form of bullying behavior in order to get our way.

Bullying has become a key concept in our society. We see forms of it in every area from the school yard to Congress, from the boardroom to the barroom.

We universally abhor the behavior in school kids, but yet we often see it practiced unchallenged as adults.

We know the incredible destructive nature of bullying because all of us have been bullied at some point in our lives, and we know it does not feel good.

We know it leads to suicide in rare cases, especially in children, because they do not know how to cope with the powerless feeling of being bullied. They would simply rather die.

It is also true that each one of us has been guilty of bullying another person at some point. If you wish to deny that, you need to think harder.

Some of us have played the role of the bully more than others. Some managers have it down to a fine art. Unfortunately, people in power positions have a greater temptation to use bullying because it is a way to obtain compliance.

The problem is that, in organizations, mere compliance is not going to get the job done.

Compliance leads to mediocrity rather than excellence.

Organizational bullying is not confined to verbal abuse or strong body language. It also occurs when headstrong managers become so fixated on their own agenda that it renders them effectively deaf to the ideas or concerns of others.

They become like a steamroller and push their agenda with little regard for what others think. In this area, there is a fine line between being a passionate, driving leader who really believes and advocates for the goal versus one who is willing to hear and consider alternate points of view.

While we are mammals, we have a more developed brain and greater power to reason than lesser species. If we use that power, we should realize that bullying behavior usually leads to the opposite of what we are trying to achieve.

It may seem like a convenient expedient, but it does not work well in the long run.

If you are an elk, you are only thinking of the situation at hand and reacting to a threat to your power or position. You are not thinking longer term about relationships and possible future alliances, nor do you care how your behaviors might inspire other elk to perform at their best.

The aptitude to plan and care is what separates man from the animal world.

Applying this logic in an organization is pretty simple. Managers who bully their way to get people to do their bidding are actually building up resentment and hostility.

While this behavior may produce short term compliance, it works against objectives long term. By taking a kinder approach, managers can achieve more consistent results over the long haul and obtain full cooperation from people rather than simple compliance.

Here are ten tips to reduce the tendency to bully other people:

1. Ask if you would want to be treated this way – Simply apply the Golden Rule.
2. Observe the reaction and body language in other people – If they cower or retreat when you bark out commands, you are coming on too strong.
3. Be sensitive to feedback – It takes courage to listen when someone tells you that you are being a bully. Ask for that feedback, and listen when it is given.
4. Speak more softly and slowly – Yelling at people makes them feel bullied even if that is not your intention. When you get excited, lower rather than raise your voice.
5. Ask for opinions often – Managers who seek knowledge as opposed to impressing their brilliance or agenda on others have less tendency to be bullies.
6. Think before speaking – Ask yourself if this is the way to gain real commitment or just temporary compliance. Is it good for the culture?
7. Reduce the number of absolutes you use – Saying “You never do anything right” cannot possibly be true. Soften absolutes to allow for some reason.
8. Listen more and talk less – When you are shouting at people you cannot possibly hear their rationale or their point of view. Hear people out; do not interrupt them.
9. Don’t attack or abuse the weak – Just because you know an individual is too insecure to fight back is no reason to run over him or her. It only reveals your own weakness.
10. Write your epitaph – Regarding your relationships with people close to you, how would you like to be remembered after you are gone?

My breakfast observation for today was that animals have a hard time following the Golden Rule, and there is a bully in every group.

We humans have the power to actually modify our behavior to think more strategically and do things that are not only right for now, but right for the long term. Caring for people creates a culture of trust that is sustainable.

Bob Whipple is CEO of Leadergrow Inc., a company dedicated to growing leaders. He speaks and conducts seminars on building trust in organizations.


Please Help Me Understand

August 26, 2012

On a daily basis, we experience situations where we are at odds with the actions or words of other people. It is human nature to disagree with other people at times. How we handle ourselves when this happens determines our quality of life, because it will establish how the rest of the world reacts to us.

John Wooden, the iconic basketball coach of UCLA, used to challenge his teams to learn to “disagree without being disagreeable.” We need to find the words to signal a disconnect without short-circuiting relationships. If you listen to people as they interface about their differences, you will hear all kinds of phrases that cause an increase in heat within the conversation. Here is a small set of examples you will recognize:

• What makes you think that…
• How could you possibly believe that…
• Who died and made you the queen of…
• You are not only wrong, you are stupid if you…
• What part of “NO” don’t you understand….
• Don’t you see! My way is better because…
• You never listen to me…
• If you believe that, I have a bridge to sell you…

There are millions of ways to humiliate other people when we disagree with their words or actions. Note that the statement may be current or past, written or verbal, and the action may be historical, or something that just occurred. What we need to do is suppress the human urge to blast the other individual and seek a more politic way to have an adult conversation.

The four word phrase, “Please help me understand…” is an excellent one to use as long as it is not given with a sarcastic tone of voice. Reason: The phrase does not start by putting the other person down. It is shorthand for a message indicating open mindedness but also some confusion about what the other person is saying or doing. It does not assume the other person is clueless, underhanded, dishonest, or has any other character flaw.

The phrase simply asks for more information. It calls into question the action or statement without violating the other person. It may not work in every application, since we are all different. Some individuals might even read something negative into the phrase. I think it has a lot to do with what is in the heart of the sender.

By sending a polite signal about a disconnection with the other person, it gives him or her time to rethink what was said or done to see if it was too edgy. Often just this little nudge will cause the person to reframe the action or statement into something more reasonable. It is also an honest way to stop the conversation for a gut check on reality.

When you are tempted to blast a co-worker for something said, written, or done, think about saying “Please help me understand,” and you will see a more helpful and constructive reaction in most cases.