GPI 329 – Track employee turnover numbers and the real reasons why some employees no longer work for you.

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All companies have employee turnover. Sometimes it is the employee’s fault and sometimes it is the company’s fault. The economy changes and sales decline sometimes, resulting in headcount reductions due to no fault of the individuals themselves.

HR needs to summarize your turnover problems.  Whatever the reasons, get HR to tell you regularly why a certain percentage of employees no longer work for your company. Some people turn in resignations and others are terminated. All of this costs the company money in the form of training and reviewing procedures each time with new, far less productive personnel.  You need to ask why.

Tracking and categorizing terminations will uncover a number of company problems:

  • Training Problems: Inadequate training results in product failures or avoidable safety accidents and injuries. The training is not formalized, not tested and wastes company money when hiring the wrong candidates.
  • Poor Supervisors: Too many companies reward good employees by making them unqualified supervisors, then they do not understand why they fail.  Companies should hire experienced supervisors who bring great experience and training skills with them.  They make other supervisors much better because of their presence in the firm.
  • No training program for quality improvement: Overbearing supervisors scare off good strong employees who need nurturing to grow within the company.  With no prospect of upward growth, some employees leave. When poor supervisors do not groom any promising recruits, they stifle the company’s potential growth.
  • Supervisory skills lacking: Employees who are hired are not correctly trained, monitored for accuracy, questioned for competence and encouraged for their input because their supervisors have no training.  When supervisors lack management skills, they stifle the potential of their subordinates. When subordinates become frustrated with upper management, they begin to look elsewhere for more enjoyable employment.

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