HR Solutions: 10 basic steps help save money, prevent employee turnover

Lynne Haggerman is president/owner of Haggerman & Associates, a firm providing outplacement, retained search and management consulting/training on human resource issues.

The Department of Labor estimates the cost of hiring and training an employee to be 50 percent of the individual's first-year salary. Add to that figure the cost of voluntary and involuntary turnover such as lawsuits, unemployment claims, paperwork processing and management time spent in the discipline process.

In addition, include the financial cost of lost customers experiencing decreased satisfaction from working with a new person too often. With lost customers comes the further cost of marketing and sales to win new clients. A financial review of this data for the prior year will indicate thousands and thousands of lost dollars. The keys to decreasing these financial losses are hiring and keeping quality people.

Survey after survey indicates the same top 10 reasons staff remain within a business. These reasons hold true no matter the industry, geographic location or size of company. Enterprises will guarantee hard-earned finances remain in the bottom line by including each point in the organizational strategy.

First, and significantly more important than any of the other nine points, is for every manager to provide extensive, positive feedback to all associates. Catch workers doing things right. Praise team members either verbally or in writing. Make the compliment real and sincere. Announce achievements in public when possible. Provide awards and schedule activities as rewards, also.

Second, each supervisor must keep staff well informed of nonconfidential current and future events and plans within the department, location and company. Use communication mediums such as e-mails, newsletters, luncheons, cassettes, CD-ROM and regular meetings. Provide much more information than management believes is necessary and the business will be furnishing just the right amount of communication to subordinates.

Third, provide associates with help on personal problems, within boundaries. A director is not a social worker, marriage counselor, financial advisor or licensed psychologist. However, he may offer a listening ear, minor advice or referrals to true professionals.

Fourth, furnish job security. Renowned psychologist Abraham Maslow refers to two basic human needs, which if not met, will cause a person to take whatever action is necessary in order to fulfill those needs. One is a feeling of appreciation, the first item already discussed in the list of 10. The second basic need is security. Communication of job and company security from the manager is crucial.

Fifth, pay fairly for each job. If unsure, conduct a salary survey to determine what the salary rate is in the job market. Pay competitively for each position.

Sixth, provide work that the employee believes is interesting and fulfilling. Since this is an individual perception, the key is successful hiring and placement of each laborer in a job that fits not only the enterprise's needs, but the worker's needs, too.

Seventh, promote career growth and learning within the organization. Ensure staff members understand the various career paths available to them and the skills required for promotion. Furnish in-house training opportunities.

Eighth, supervisors must remain personally loyal to each subordinate, going to bat and rendering support during any unfavorable discussions with upper management. Also, shared confidences must stay confidential.

Ninth, encourage solid working relationships. Promote team building within and between departments. Quickly and effectively resolve any conflicts.

Tenth, discipline tactfully. Hold the meeting in a private office. Help the laborer maintain balance and see that he is doing many job duties and behaviors correctly. State the problem calmly and directly, but professionally. Do not use a demeaning tone of voice or facial expression.

By incorporating these top 10 reasons for retention, the business will provide internal services that will definitely impact the finances of the company.