Who Says They Aren’t Motivated? The Financial Burden of Turnover.

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Who Says They Aren’t Motivated?

Transcript of Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Page 1: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Who Says They Aren’t Motivated?

Page 2: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

The Financial Burden of Turnover

Page 3: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

The Financial Burdenof Turnover

Scheduling Interview

Conducting Interview

Background Check

Processing Paperwork

Orientation

Attending Job Fair

Exit Interview

Advertising & Recruiting

Drug Testing

Fitting & Providing Uniform

ALL ASSOCIATED COSTS AND % OF OVERHEAD TO MAINTAIN DEPARTMENTS

COSTS INCURRED BEFORE TRAINING:

STAFF LABOR COSTS: OTHER RELATED COSTS:

Page 4: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

The Financial Burdenof Turnover

Take annual cost of training (staff, materials, facilities, % of overhead, etc.)

Divide by number of employees.

This gives cost of training per employee

Typically, training costs are between1% and 6% of payroll.

TRAINING COSTS

Page 5: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

The Financial Burdenof Turnover

Revenue lost from position unfilled

Worker not yet up to speed / still training

Supervisor concentrating on new worker and not other duties

Poor performance due to cycle of of low motivation … low productivity … low retention leading to lower margins / lower wages / low motivation / low productivity …

LOSS OF SALES due to lack of productivity and / or poor customer service.

PRODUCTIVITY LOSS

Page 6: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Motivation / Retention 101

Skill Variety

Task ID/Significance

Autonomy

Challenge

Recognition

Potential of Additional

Advancement

Sense of Achievement

Camaraderie

Strong Communication from Management

Page 7: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

On-site Survey,Successful Managers...

Said “thank you” Let workers know they did a

good job Greeted people as they came in Communicated information from

higher-ups (buffered rumor mill) Pitched in, got hands dirty Gave direct feedback,

respectfully Explained importance of job

Page 8: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Survey:Successful Managers...

Asked questions showing personal interest

Did special favors (took to lunch, extra time off, etc.)

Were honest and fair…didn’t let anyone get away with slacking off

Backed them up with management Joked around and allowed joking

around

Page 9: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Do I or Don’t I?

Personal Motivators

ReasonsTo

Work well

ReasonsNOT To

Work well

+ 3 - 3

+ 2 - 2

+ 1 - 1

Page 10: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

CAN’T VS. WON’T CAN’T

Want to…don’t know how

WON’T Can…don’t want to

PERFORMANCE=

Motivation x Abilitydegree they want to x degree they can

Page 11: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

If An Employee Seems “Unmotivated”, Maybe They...

Think they’re already doing it Don’t know how and were afraid to ask Don’t understand “why” Are negatively reinforced for doing it right Are positively reinforced for not doing it right Are physically or otherwise unable Haven’t reason to do more than good enough Are being managed by someone else

Page 12: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Communicate Productivity Message (benefits for good work)

through: Recruitment Interviews Orientation Training Informal supervision Performance evaluations Team and department meetings Demonstrated career pathing Communications from upper

management

Page 13: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Productivity:You Get What You Give

Publicize and promote it Show management support for it Teach managers how to improve it Expect it Measure it Reward it

To improve productivity on a corporate level, generate a campaign with goals and

benchmarks

Page 14: Who Says They Aren’t Motivated? The Financial Burden of Turnover.

Retention & Motivation

High Turnover Is Not A Reflection On The Nature Of The Workers…

High Turnover Is Management Falling Short In How They Manage The Workforce

And The Supervisory

Personnel Within It.