Employee Turnover Impacts Your Business
Turnover hurts your retail or service sector business in many ways. High employee turnover decreases revenues as a result of productivity and customer service declines. Costs increase because your business typically has to place classified ads, pay fees to head hunters, and provide training for new hires.
Feedback as a tool
Fair and honest feedback is a great way to reduce employee turnover and costs your business nothing. Feedback falls into two categories. Positive feedback reinforces behaviors and coaching feedback changes a behavior.
A small amount of recognition goes a long way. As a result of positive feedback, the employee will feel appreciated. You will also ensure the behavior occurs again. Here is a quick list of tips when giving positive feedback.
- Always recognize an employee for doing something outside his or her job description.
- Recognize the employee face to face so it is more personal.
- Periodically recognize the employee in front of peers and other managers in order to let others know.
Many managers and business owners feel that coaching feedback can lead to employee turnover. Yet, I have not found that to be the case. Coaching feedback, when done correctly, can improve employee satisfaction. Employee satisfaction is increased in many ways. The employee knows what is expected of him or her. The employee will be able to perform the job better and, as a result, be more satisfied. It also improves the morale of the entire team because poor performing employees do not impact high performing employees.
Proper ways to give coaching feedback:
- Use coaching as a training tool instead of a reprimand.
- Let the employee know what he or she did wrong. Ask the employee how it could have been handled differently to create a dialog. Explain the reasons for handling the situation differently.
- Ask follow up questions to ensure employee understanding.