EXCESSIVE TURNOVER is typically the clue. That’s the tip-off that usually generates a call from a company or nonprofit for outside HR assistance. ItÕs the kind of call I received from an established restaurant chain, which was concerned about its high rate of management turnover.
Upon closer examination, I found that the restaurant managers didn’t provide corrective performance reviews consistently because they were uncomfortable with these skills, and they felt they did not have clear objectives set for themselves. These two issues frustrated them, and one way they dealt with this was to quit. We prescribed some training, clearer performance review processes and procedures, and management coaching, as well as other forms of human resources assistance.
A year later, the company reports lower involuntary turnover and more satisfied employees and managers.
Too many tasks
Today’s managers are working managers who should spend between 10 percent to 40 percent of their time completing tasks and the rest managing the work of others. However, in my work as an HR consultant, I find that typically the reverse it true.
Managers have too many tasks and feel they lack the time and resources to complete these tasks effectively. Often they take on additional tasks because they feel that their employees are already doing too much.
Too many managers accept less productivity than they should from employees. More work could be produced if the employees are properly motivated and directed. Between the 10 percent of employees who are considered high performers and the 10 percent who could be categorized as “needs to improve” is a broad spectrum who have the ability to produce far more.
This 80 percent is composed of dependable employees. They are the organization’s “work horses” who have the ability to get the job done if they are properly motivated and consistently get the support they need.
When managers use more effective management practices, the improvement in employees’ productivity and their motivation are easily observed and measured. And under-managed workers can be transformed into happier and more productive employees.
Keep in mind that the 10 percent who “need to improve” their performance shouldn’t be ignored, which is what most of them want and what managers typically like to do. Their lack of performance is ignored because it is difficult to deliver constructive feedback, and managers aren’t convinced that the additional effort will pay off.
Assess work force
First, you must assess your work force. Determine which employees are the top performers, which employees are the dependable workers, and which need to improve their performance.
Start by managing the employees who need to improve their performance. There are legal and ethical reasons for addressing poor performance issues before termination is considered. Even more importantly, poor performance can cause disruption among other employees who do notice that poor performers are getting away with producing sub-par work.
Eventually, co-workers will refuse to pick up the slack. Over time, team dynamics can deteriorate as accountability dissipates. Instead of focusing on solving actual business problems, managers become watchful of inappropriate behavior. Pretty soon an entire department can become dysfunctional..
In the worst cases, when performance is not managed effectively, customer service can be affected. And turnover can soar. On average, less than 15 percent of the work force voluntarily quits their jobs.
According to a recent study, tangible replacement costs for turnover range from $10,000 to $50,000 per position, based on the level of the job. It usually requires between 45 days to nine months to fill open positions, with some professional and senior level jobs taking longer. The average expense for small firms to replace an exempt position is about $9,000, with replacement costs for non-exempt positions running about $3,500.
Make sure you don’t forget the top 10 percent. Ask your most dependable workers what support, development and resources they need in order to increase their performance. Evaluate and communicate how much of what they have requested you can provide, and then make it happen, consistently. Take time to recognize and reward results and provide constructive feedback.
Some managers believe that the top 10 percent and the dependable workers should be managed differently, perhaps more casually than less productive workers, but this is not the case. Consistency is critical. Favoritism — real or perceived — will be destructive.
Fixing productivity
With all three groups of employees, most of the solutions to productivity problems involve increasing communications and consistency. Unfortunately, it does involve more work on a managerÕs part at the outset. But this investment will be paid back over time. For example, you wonÕt have to do an unpredictable employeeÕs work anymore.
Recently I’ve been recommending a book on communication called People Smart: Developing Your Interpersonal Intelligence by Mel Silberman and Freda Hansberg. It’s an excellent resource for managers who want to improve communication in all aspects of their lives. The book focuses on strategies to improve relationships and communication with bosses, employees, spouses and children, and it includes exercises that help managers and employers communicate more effectively.
The payoff for the extra management attention will result in employees who accomplish their work without you picking up the slack, and a more motivated workforce overall, which can lead to decreased turnover. When you begin getting these kinds of results, you’ll be motivated to keep closing the gaps between unacceptable and impressive performance.
[contact] Janice Downing is a senior consultant for Fredrikson Human Resources Consulting in Minneapolis: 612.752.2653; jd******@****hr.com