Diagnosing Turnover

The cost of replacing an employee averages between one and two times the candidate's salary plus benefits. So for a $50,000 salary the cost of losing that candidate ranges between $65,000 and $115,000. The cost is higher in sales departments, where the loss of productivity, revenue, cash flow, and even clients is astonishing.

Whether your sales team is quitting or you have to let people go, turnover costs are painful. You must stop the bleeding, tourniquet the turnover, and repair the wound.

Just because you are letting people go versus having employees quit, doesn’t mean you truly understand the health of your business. Many managers think, “I have turnover because my team is not meeting quota and slacking. I had to let them go.” Believe it or not, some people do things to get fired rather than quitting. Getting fired may not be good for a recommendation; however, it often does allow for an unemployment claim. So ask yourself, are your employees trying to get fired?

Stopping employee turnover encompasses more than the need to retain people or hiring the right candidate in the first place. You need to get to the core issues that need healing to stop the bleeding.

Diagnosis for Turnover

The first step to healing is diagnosing turnover.

Diagnostic tools include using a strict method to assess the right candidate fit for each of your sales positions. Inside sales requires a different personality type than outside sales. Exit interviews are another helpful diagnostic tool to heal your organization from further loss.

Using exit interviewing is highly recommended. They are performed most often with voluntarily departing employees; however, may be used with fired employees as well.

The exit interview tool is used to gather data regarding the health of your organization. Data assessed includes management, environment, safety, compensation, benefits, products, career advancement, workload, and overall company information.

Don’t let the opportunity to assess your organization’s health from an employee’s perspective pass. Quite often a voluntarily departing employee will give more non-bias and open information than a current employee. The interview may be done orally or written, or even via internet.

Be Prepared - Listen to Employees

Be prepared to hear the unexpected. This is a great opportunity for an employee to let loose. Even though you don’t want to hear the negative, you need to.

Knowing what isn’t working for your employees, is the only way to begin the change process. If they want to use you as a reference, they may need coaxing to tell the truth. Tell them your sincerity in wanting to know the reasons they are leaving. Listen with an open mind; never get argumentative.

If you don’t think you’re getting pulse on your organization’s health, you may also try a written anonymous assessment. This can even be done with current employees.

Questions To Ask Employees - Exit Interview

Have an idea of what you want to ask before the exit interview. Ask good (mostly open-ended) questions such as:

• Why are you leaving?
• What are you going to do?
• If employment is the reason for leaving, ask:
  • What sort of new job, position?
  • What attracted you to your new position?
  • How does the new job differ from the current position?
  • How different will your new benefits package be?
  • Who is your new employer?
• How did/do you get along with co-workers here?
• Do you feel you had adequate training?
• Were the job duties and expectations described well in the initial interview process?
• Could your skills have been better used in the company?
• How is the morale of your division?
• How did you feel you were managed during your employment here?
• Were you given adequate support?
• How is the work environment?
• Tell me the worst thing about working here. Now tell me the best.
• Are there any changes you would like to recommend?
• Are there any other issues you would like to raise?

In an oral interview, don’t forget to get a forwarding address, especially if you intend to do any kind of follow-up survey.

At one company, several good employees had quit and every time a new hire would finish training, they would leave within weeks. The reasons for leaving varied. No exit interviews were held. After going back and phoning several employees, we realized there were two employees who were making life miserable for the rest of the group.

These two were performing all job duties and flying under the radar of the management for the most part; however, they were the knife that was stabbing the company and draining it of valuable resources. Once they knew the problem, they were able to heal the organization from the inside out. Morale was up, turnover down and sales increased.

Statistics for Accurate Turnover Diagnosis

Keep statistics. Just because one employee has a problem with morale doesn’t mean it is an issue, but if you find that numerous individuals are leaving because of morale, you may want to take a closer look. The same goes for any issue you could put in the place of morale. Statistics will allow your accurate diagnosis of most issues.

Don’t Use Exit Interview Info Against Employees

Do not use information gathered at an exit interview at a later time against the employee. Other employees will likely find out. And your subsequent exit interviews will not be as candid.

Some of the best assessments come from employees who are given an opportunity to give a written survey anonymously a few weeks after leaving and have had time to reflect as well as secure new employment.

Take Acton No matter what method you use to understand what is and is not wounding your organization, take action today. You can’t afford to lose another employee.