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Companies
Cannot Afford High Turnover Rate
By Judith Rasband
Employees are a company’s greatest resource.
If a company can’t create satisfied employees, the employees
will find a company that can. “I’m outta here!”
fumes Joe Blow, dissatisfied with the lack of recognition from both
management and staff.
The cost of employee turnover ranges from $10,000
to $40,000 per employee holding an average job within a moderate
sized company. The cost may be higher for small companies wherein
the employee may serve in several roles. According to the Harvard
Business Review, a 5 percent increase in retention can result in
a productivity gain of 25 percent to 65 percent. The cost is clear.
Companies cannot afford to lose employees.
Although a lower salary may lead to job dissatisfaction, a top salary
does not guarantee job satisfaction and retention. Research reveals
that a work environment that helps raise a person’s self-esteem
will actually result in more satisfied workers. It’s a simple
concept they say, people who feel good about themselves at work
will work harder, be more efficient, and will ultimately be more
satisfied.
Raising Self-Esteem
So, how do you raise employee self-esteem? Studies
show that employees need to feel they are an important member of
the company team, actively involved and making a positive contribution.
They need to feel that their efforts are recognized and appreciated.
This requires management to treat employees
with respect and praise. Management must communicate openly their
expectations and employee responsibilities, then reward efforts
and accomplishments liberally. This information is reinforced by
reports that 79 percent of employees who leave their jobs cite,
“lack of recognition” as a key factor.
“Right on!” says the image management
professional.
Lack of recognition may be the simple result
of someone not looking capable of making a real contribution deserving
recognition. It’s a common sight. Wearing jeans or khakis
with a shabby T-shirt or polo, the look is like an intern still
in training. Wearing spandex two sizes too small, exposing too much
skin and finished with flip-flops, the look suggests provocative
fooling around, distracting valuable time away from business.
The fastest way to raise employee self-esteem
is to improve the way they look. It’s a simple, time-tested
concept. Look better, feel better, do better on the job. It isn’t
enough to provide product or technical training, continuing education
in sales and marketing, without also including image management
education — the most visible credential of all.
Providing this professional development opportunity is an outstanding
way to encourage, motivate, and reward employees. Looking comfortably
fit, appropriately professional, more intelligent, organized, and
energetic, employees will benefit from increased self-esteem and
self-confidence.
(Although the program is not designed to make
employees more attractive, it tends to be a by-product that works
wonders.)
Employees will experience increased capability;
improved performance, and productivity. They will be noticed, recognized
as being professional, receiving more respect and better treatment
from others, including praise for effort and achievement.
Looking and feeling better, both mental and
physical health can be expected to improve. Absenteeism will decrease
— just another reason companies should offer an image management
program.
Some 25 percent to 45 percent of the money spent
on salaries goes to absent employees, the actual amount depending
on the size of the company. An image management program is actually
quite a wellness program, well worth the investment to keep employees
on the job and satisfied with themselves and their work.
© 2006-7 Conselle L.C.
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© 2007 Meridian
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