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A couple of weeks ago I blogged about The Power of Two Little Words – Thank You.    I thought I would share some interesting stats I found in the August 2009 issue of CAmagazine. 

In  a study conducted by Office Team about different forms of recognition for a job well done, managers of administrative professionals thought their staff valued the following:

1. promotion
2. cash
3. paid time off 

While their employees, the administrative professionals, valued the following:

1. in-person thank you
2. the boss shares the specific achievement with senior management (tied for first)
3. promotion

Administrative professionals said they would most likely leave their job if they didn’t feel appreciated by their boss, and they valued ”a simple thank you” over cash!  

So, it isn’t always about the money, when it comes to retaining employees.  Recognition, including a simple thank you, is a values based retention strategy that helps you keep your best emplopyees!  

Next week, I’ll share some tips for creating a powerful thank you!

Joanne

Joanne Royce is the Founder of Royce & Associates, a Human Resources and Training Solutions consulting company. She is committed to Creating Happy, Healthy and Productive Workplaces. She believes in the power of “Thank You.”

Do you measure the cost of turnover?   Don’t worry, you aren’t the only one if you don’t!   Calculating the cost of of turnover doesn’t have to be confusing or labour intensive.   Even with unemployment rates higher than normal, losing a star performer hurts the bottom line.    Reducing turnover saves the the company money that can be used in other areas. 

Reasonable estimates put the cost of replacing top candidates at between:

1. 0.25x to 0.5x annual salary plus benefits for nonexempt employees
2. 1x to 1.5x annual salary plus benefits for exempt employees
3. 3x to 5x annual salary plus benefits for executives
   (Source: Canadian Human Resource Management, A Strategic Approach 2007)

This provides a “rule of thumb,” but the actual cost of turnover depends on the labour market, the industry, the position, and even the type of turnover.    It includes direct and indirect costs as well.

Wouldn’t it be better to use specific data from your own organization?   Knowing the actual cost of turnover allows you to take action on reducing the cost of turnover and using that savings to invest in growing your organization and customer base.  

Click here to request our special report - “Measuring the REAL Cost of Turnover.”   This report reveals two different estimate methods of calculating turnover,  how to measure actual turnover, different turnover metrics, how to benchmark, and more.  Plus you’ll get two different worksheets to help you  calculate the real cost of turnover.  

Take the time to discover the REAL cost of turnover so you can take action and redirect dollars into increasing your customer base and profits.  

Best regards,  Joanne

Joanne Royce is the Founder of Royce & Associates, a Human Resources and Training Solutions consulting company.   She is committed to Creating Happy, Healthy and Productive Workplaces.

Thank You.   Two little words that have tremendous power yet cost nothing to give.  It sometimes seems like Thank You is disappearing in this world where we are all so busy.   It’s human nature to speak up when something has to be fixed or changed, but when something is done right or an effort is made, we forget to say Thank You.  

Have you forgotten to say Thank You when someone deserved to hear it?  Have you observed or experienced any of these?

• a person opening a door for a stranger, who breezes right on through without a thank you.  
• a receptionist getting a glass of water and hanging up a coat for a candidate waiting for an interview with never a “thank you” spoken.  
• a senior manager calling a manager an “idiot” for contributing an idea in a meeting, rather than thanking him for his input!

Even someone who comes up with an unrealistic idea can be thanked for contributing.   That’s much more effective because it will ensure the management team doesn’t clam up and stop participating.   Maybe next time a better idea might move the company to the next level.  

Thank You is a gift that, when genuinely given, makes people feel appreciated and valued.  People who feel valued are more willing to make an effort.   A study on the power of Thank You found that waitresses who wrote a simple Thank You on food bills received 11% more in tips then those who didn’t.   

In this economy with tight cash flow, you can start your values based retention strategy with two little words.  Thank You is a powerful tool to help managers motivate and retain their best employees, especially during these times when we’re all doing more with less. 

Last week, while I was running, zoned out, and concentrating on the rhythm of my foot steps (really, I was trying to make it to the next telephone pole), a grandmother in front of me heard me coming and she moved her granddaughter and stroller out of the way so I could run by.  After I passed by, she yelled ”You’re welcome!” towards my back, bringing me back to the world of awareness and making me ashamed of my unintentional rudeness.  I wasn’t paying attention and missed an opportunity to say Thank You.    I guess we can all start by being more aware of what is going on around us whether in the workplace or elsewhere.   We can look for opportunities to say Thank You often!   Two little words that cost nothing to give and do much to make the workplace (and the world) a better and kinder place.   

Thank YOU for dropping by,

Joanne

Joanne Royce is the Founder of Royce & Associates, a Human Resources and Training Solutions consulting company.   She is committed to Creating Happy, Healthy and Productive Workplaces.  She believes in the power of “Thank You” even if she sometimes misses opportunities to use these two little words herself.

Keeping current employees is the same as keeping current customers.  It costs less to retain employees then it does to find new employees! 

To retain top employees, organizations must become an employer of choice.    An employer of choice uses a retention strategy that appeals to what employees value in the workplace.   Surveys conducted by the Gallup Poll and Wyatt Watson indicate that workers today value a number of elements.   I like how Pam Withers, in a 2001 Workforce article, takes this information and describes a values based retention stategy that incorporates six factors:  
 

1. A sense of deeper cause
2. Employees as partners
3. A sense of community at work
4. Work / Life balance
5. Professional growth and development
6. Trust

The above list is a great way to categorize the factors in your retention strategy.   For example, for “a sense of deeper cause” you can try incorporating volunteerism or green practices into your business processes.  For “a sense of community at work” you can schedule pot-luck lunches that celebrate the diversity of your workforce and create a sense of belonging or community at work.    

There is a seventh factor that should be added to this list based upon the survey discussed in my last blog “Why Good People Leave“:

7.  Pay people right

Do you have a retention strategy that incorporates a values based approach to retention to ensure you remain or become an employer of choice?   Click here to request more tips on how you can incorporate a values based approach retention strategy at your company.

Best regards,  Joanne

Joanne Royce is the Founder of Royce & Associates, a Human Resources and Training Solutions consulting company.   She is committed to Creating Happy, Healthy and Productive Workplaces.  She helps organization create best practice retention strategies.