Monday, August 20, 2007

Get Rid of Poor Managers – The Key to Decreasing Attrition Rates

Demote, re-train or fire poor managers now as they are costing your company a lot of money. Ask any employee why they are leaving a company to pursue other opportunities and the reason can usually be traced back to their immediate supervisor. If it’s related to compensation, poor direction, difficult working conditions, work life balance, training, etc. the manager in many ways can improve or shape the direction of these key attributes. One call center that I worked with had a 120% year over year attrition rate. Can you imagine trying to keep your customers happy with this type of turn over! The company was in constant recruiting and training mode costing the company hordes of money and tons of lost productivity.

Stop the constant recruiting cycles and stop your lip service to “employees are our #1 resource” by putting in place a program that works. With the cost of attrition pegged on average at 150% of the individual’s average salary, people exiting your company will leave your business in the dumps and at a severe disadvantage to your competitors. Believe me any CEO will listen to you when you translate retention of employees back to the bottom line.

Once I started working with the client listed above and put a Retention Assessment Program (RAP) in place, attrition dropped 35% in the first year, resulting in a net savings of approximately 2.5 million dollars. A RAP is a series of weighted questions that employees answer, that when compiled provide a manager with a RAP score. This score when married to the actual unit attrition rate allows HR to work with the manager to put concrete actions in place to lower attrition. The RAP summary sheet allows executives to also work with HR to make staffing and promotion decisions around its management.

Putting a RAP in place is all about changing the culture of the organization and putting in place a management of change program. Executives must be engaged and participate with active communication and by providing clear rewards for managers that show reduced attrition rates and by providing disciplinary measures to those that continue to demonstrate high attrition.

If you’re interested in finding out more send me an email at fguay@rogers.com

2 comments:

G Neil said...

Oh so true! But sadly, so seldom done. Years of seniority, fear of lawsuits and established personal connections (AKA The Good Old Boy network) too often work to keep bad managers solidly and comfortably in their positions year after year.

So how do we bypass that glue that tends to keep really bad managers in place? Or is the social and networking factor just too strong to allow more than a few sacrificial lambs now and then?

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