Wo r k f o r c e By Dan Charney
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Reasons Good Employees Quit Prevent expensive turnover by avoiding these common management blunders.
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ccording to the U.S. Department of Labor and Statistics, turnover can cost an organization 33% of an employee’s total compensation, including both salary and benefits. The impact is not only financial; it also affects employee morale. And, bad morale results in a domino effect that negatively impacts productivity. Obviously, it’s prudent for managers to reduce turnover rates. However, one must first understand the main reasons good employees quit. As a veteran search consultant, I have heard an infinite number of reasons first hand. Over the years, I have identified and compiled a list of what I feel are the top-10 reasons why good employees quit: 1. The job was not as expected. All too often, the job changes from the original description and what was promised during the interviewing stages. It becomes painfully clear to the new hire that the company played a bait-and-switch game, which ultimately leads to mistrust. The new hire is thinking, “What else are they lying about?” 2. Work/life imbalance. There are times when management demands that one person do the jobs of two or more people. This is especially true when a company downsizes or restructures, resulting in longer hours and weekend work. Employees are often forced to choose between a personal life and a job. 3. Mismatch between job and new hire. No matter how much you love certain candidates, don’t hire them unless they are qualified for the job and mesh with your com-
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pany culture. Too many times, I’ve seen hiring managers try to fit a square peg into a round hole. 4. Management freezes raises and promotions. Money isn’t usually the first reason people leave an organization, but it does rank highly, especially when an employee can find a job earning 20% to 25% more somewhere else. Make sure your wages are competitive. Online resources such as www.salary.com or industry associations such as the Material Handling Industry of America, the Material Handling Equipment Distributors Association and the Warehousing Education and Research Council can help you track down accurate information about appropriate wages. 5. Feeling undervalued. It’s human nature to want to be recognized and praised for a job well done. In a material handling operation, recognizing employees is not simply a nice thing to do but an effective way to communicate your appreciation for their efforts, while also reinforcing those actions and behaviors. 6. Lack of decision-making power. Too many managers micromanage down to the finest detail. Empower your employees and allow them the freedom to make suggestions and decisions. I realize that “empowerment” is a catch-all term for many ideas about employee authority and responsibility. However, as a broad definition, it means giving employees latitude to do their jobs and placing trust in them. 7. Too little coaching and feedback. Many managers have no clue how to help employees improve their perfor-
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mance. In addition, supervisors often put off giving feedback to employees, even though they instinctively know that giving and getting honest feedback is essential for growth and building successful teams and organizations. Your role as a manager is to help your people find the right behavior, not just tell them what to do. 8. Management lacks people skills. Remember that many managers were promoted because they did their first job well, but that doesn’t mean they know how to lead others. People skills can be learned and developed, but it really helps if a manager has a natural ability to get along with people and motivate them. 9. Too few growth opportunities. One of the most common reasons employees express for leaving their jobs is lack of challenge and potential for career growth. The most successful employers find ways to help employees develop new skills and responsibilities in their current positions. 10. Loss of faith and confidence in leaders. When employees are asked to do more and more, they see less evidence that they will share in the fruits of their successes. When revenues and profits increase along with workload, employers should take another look at wages. Associates know when a company is doing well and expect they will be considered critical enablers of that success. MHM Dan Charney is managing partner at Direct Recruiters Inc. (Cleveland), an executive search firm established in 1983. Leading packaging and material handling companies rely on Direct Recruiters to help build solid teams in sales, sales management, marketing, engineering and technical support. Charney can be reached by phone at 440-248-3370, ext. 110, by e-mail at
[email protected] or via the Internet at www.directrecruiters.com.
Workforce News WERC Releases Salary Survey
OAK BROOK, Ill.—Pay for most warehousing employees is steadily increasing, according to the 2008 Warehousing Salaries and Wages study released by the Warehousing Education and Research Council (WERC). Conducted every two years, the survey provides an ongoing look at salary trend lines for most warehouse positions, from vice president of logistics to warehouse worker. Among exempt employees, traffic managers, general man-
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agers and office managers experienced the greatest increase in median salary at 17.9%, 17.6% and 16.5%, respectively. Compensation for sales positions at all levels declined by as much as 16.2%, in part due to a loss in bonuses/commissions received, according to WERC. With a 7.1% increase in median wages, warehouse workers enjoyed the highest percentage gain among non-exempt employees, the report indicates. Customer service representatives’ pay increased 5.4%, widening the gap from $0.07 to $0.38 per hour between their compensation and the secondhighest paid (shipping and receiving clerks). “The study illustrates the dynamic nature of compensation in the distribution workplace today and how important it is to stay current in order to calibrate salaries and wages,” says Rita Coleman, director of research and education and deputy executive director of WERC. The study is available free to WERC members and can also be purchased at www.werc.org.
APICS to Offer Vouchers for CPIM Certification
CHICAGO—APICS, the Association for Operations Management, recently launched a new initiative to help college students earn their APICS Certified in Production and Inventory Management (CPIM) certification. The CPIM Pearson VUE Jumpstart program provides 100 vouchers annually that cover testing fees for the APICS Basics of Supply Chain Management examination. This exam is the first of five required to earn the CPIM certification. The national program is the result of a collaborative effort between Pearson VUE, a computer-based testing firm, and the APICS Educational and Research (E&R) Foundation. Interested students may submit applications between Jan. 1 and Feb. 15, 2009, at www.apics.org/education/erfoundation/default.htm. Voucher recipients will be selected based on an annual lottery held in mid-February. “APICS certification and training advances the operations management profession; students that graduate college with their CPIM certification have a significant advantage over their peers,” says Bob Collins, CFPIM, CIRM, CSCP, executive director of the APICS E&R Foundation. “The APICS community is eager to assist its student members in increasing their functional knowledge of production and inventory management through the globally recognized CPIM certification, which will ultimately enhance their credibility among peers and potential employers.”
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