Big expense, but wont see it on your financial statements!?
High turnover is a good thing, if you’re talking about tables in a restaurant or inventory. But, if you’re talking about personnel it could be one of your biggest expenses and it’s the one that doesn’t show as a line item in your financial statements. This is because the loss is in time to recruit and train, resulting in less time to work or plan. Turnover is commonly reflected in lost sales due to the lower quality of the service you provide. Its negative impact on sales can be significant.
Training is the main key to a lower turnover rate.
Competitive compensation must be considered but training is number one. We often hear “but if I spend money to train them they’ll leave and work for a competitor.” The comeback to that is “suppose you don’t train them and they don’t leave. Then what have you got?”
No one knows the skills required of your employees better than you. You’re the one that has to determine what training is needed in order to enhance employee confidence, skills and self-esteem. These together build pride and pride builds loyalty. The employees that have these qualities are the ones who like their job and are the ones that will provide the quality of service that promotes customer loyalty and repeat business.
Training is not just for the new employee.
It should be an integral, ongoing part of the business. If you wish you had more time to plan the business then you have to delegate. To accomplish either of these you have to train. If you think they will grow on their own, you’re betting on a long shot. Better to just buy a lottery ticket. Start by asking yourself: What training is offered for your employees? Is it consistent? Is it ongoing? Are employees growing or are they static? Am I investing in them?
Think about what the customer expects
To establish a training program, you first have to determine what your customer will expect when they come to you. Ask “What do you want your customers to experience?” Then, assess if your employees are providing the level of experience you that is right for the customer.
Compare your customers experience with their experience at your competitors
If you and your competitors sell similar products the customer experience might be the main thing that differentiates you from them. You should provide the employees with all the elements they need to make sure the customer experience is optimized every time contact is made, whether in person, phone or e-mail.
Reduce employee turnover and you’ll increase the customer experience. You’ll like the difference in the bottom line. Training isn’t an expense. It’s an investment. Make training a part the monthly calendar.