When it comes to employee turnover, do you know the best strategies that have you thrive and prosper?
At best, employee turnover drains your profits or can put you out of business at worst. Neither of these scenarios is desirable if you’re thinking about a liquidity event.
A liquidity event is the largest and most important financial decision of your life. You have one chance to get it right, and you want to make it count.
Don’t count on your future buyer letting you off the hook for a high employee turnover. Even with The Great Resignation, your future buyer will do one of two things.
High employee turnover has buyers walk from the deal or penalize enterprise value. Once again, neither scenario is desirable.
It’s little wonder that up to 90% of liquidity events fail. Yes, the statistics are depressing. Imagine the wasted time, effort, and money.
For “successful” liquidity events, buyers put 50% to over 100% of the deal value in their pocket. Insult to injury, business owners have no idea how much of their money they walked away from.
Who am I, and how do I know?
I was almost one of the statistics. I said “no” to a 7-figure offer and “yes” to mastering the art and science of a liquidity event. Two years later I said “yes” to a 9-figure offer from a different.
I created a 9-step roadmap of preparation for my liquidity event. Today, I pay it forward. I help business owners through the 90-day Deep Wealth Experience. At the heart of the Deep Wealth Experience is the exact 9-step roadmap.
Five strategies have you thrive and prosper when it comes to employee turnover.
Do you know what these five strategies are how you can leverage them?
Employees don’t quit jobs, but instead, toxic cultures — Jeffrey Feldberg.
Often high employee turnover is a result of a toxic culture. But your culture is the only thing to focus on when it comes to success.
In the 9-step roadmap, step two is X-Factors that insanely increase the value of your business. One of the X-Factors at the top of the list is culture.
Your competition can copy your technology, but it cannot copy your culture. Your company culture is unique to your business and only your business.
What can you do to improve your company culture? First, show your employees instead of telling them.
Invest in professional development for your employees to show that you care. Employees don’t want the “same-old” every day. Professional development unlocks career progression and opportunities for employees.
While you’re at it, do you have regular team-building exercises and surveys?
If your answer was anything but “yes,” you’re welcoming employee turnover. A team that plays together stays together.
In step 2 of the 9-step roadmap, another X-Factor is clarity. One aspect of clarity is knowing what your employees think of your business. Regular surveys are a rounding error in cost compared to losing employees.
Do you know what your employees want more than anything else?
If you answered “money,” think again. Employees want praise and recognition. Recognizing hard-working employees lifts morale and culture.
While you’re at it, introduce the “F-word” into your culture, otherwise known as “fun.”
When was the last time your company celebrated employees’ birthdays?
If you can’t remember, the next best time is today.
Do you know the next leading cause of employee turnover?
You can’t do a good job if your job is all you do — Katie Thurmes.
A lack of work-life balance often causes high employee turnover. Early mornings and late nights became the norm somewhere along the line.
Technology made it possible to stay in touch with employees around the clock. But technology also made it possible for remote work.
Technology cuts both ways. The pendulum has shifted away from companies and now to the employees. As a result, mental health is now front and center for society.
What can you do to put balance back into the work-life balance?
Chances are, certain aspects of your culture have blind spots that you need to know.
Now is the time to change your culture. For example, you can make it unacceptable for employees to work after work hours.
There are no shortcuts in business or life. Long work hours, over time, cut into productivity and quality.
One great way to get your culture back on track is anonymous surveys. Employee turnover results from either too much or too little in crucial areas.
Surveys reveal a lack of fairness, control, and rewards. Surveys also show too much work, toxicity, and conflicts.
Putting the balance back into work-life balance has you do one other thing. Leverage both the trend and technology and offer remote work where possible.
If your team feels that they are working too much, you can explore hiring freelancers to pitch in.
The truth is you can make the changes now, or your employees will decide for you. Smart business owners reduce employee turnover by being proactive and ensuring work-life balance.
Success demands singleness of purpose — Vince Lombardi.
It should be no surprise that a lack of purpose creates high employee turnover. The Coronavirus pandemic had people worldwide re-evaluate their lives. More than ever, employees want meaning and purpose.
What can you do, and where do you start?
Ensure that your company mission has a purpose. For example, if your mission is meaningless words that take up space, it’s time for a new mission.
There’s an art and a science to motivating employees. Your business narrative is the beginning, middle, and end. Ensure that you answer the “how” and “why” in your mission. Employees want to know why they’re doing what they’re doing and how it impacts.
It should be no surprise that company culture plays a role in motivating employees. Three vital areas create a purpose for your employees.
Your three to thrive are:
A rich and thriving culture embodies the above three areas. Start with yourself before you look to your leadership team and your employees.
As the business owner, become the change you want to see in your company. Lead by example. Go outside your comfort zone, welcome a growth mindset, and take calculated risks.
Ensure that you provide your leadership team with the tools and training. You’re also supporting the business by helping your leadership team and employees.
Next up, do you know the two main drivers behind high employee turnover?
There are no bad teams, only bad leaders — Leif Babin.
High employee turnover is a result of terrible managers and a long commute.
Start today by reviewing trends for each of your managers. Be on the lookout for managers whose department has high employee turnover. As demoralizing as a terrible manager, a business owner keeps the manager.
But before you begin to point fingers, take an honest assessment of your company. Companies with low employees turnover invest in professional development.
Effective managers can discover the unique attributes of each employee. Terrible managers focus on employees’ weaknesses. Great managers focus on employees’ strengths.
Employees value a manager who appreciates their quirkiness. Effective managers take it a step further and celebrate employees’ quirkiness.
Great managers integrate employee strengths into the workplace and overlook weaknesses. Playing to employees’ shortcomings is a fool’s game. Everyone loses.
Let’s revisit your company culture. A transparent company culture thrives on accountability. Ensure your managers have a retention KPI when it comes to your KPIs.
The best strategy for KPIs is to have all the KPIs in view for the entire company. Everyone likes to be on a winning team. The drive to win and social pressure motivate managers to do things right.
When it comes to employee retention, do you know the one area that is most overlooked?
People work for money but go the extra mile for recognition, praise and rewards — Dale Carnegie.
For high employee turnover, do you recognize that your employees lack recognition?
When it comes to what employees value, study after study puts compensation at the bottom of the list. Instead, employees appreciate the recognition.
Could something as quick and straightforward as recognition make the difference?
The short answer is “yes.”
When it comes to recognition, let’s first start with the types of recognition:
No two employees are alike. The previous section suggested that managers find and value the quirkiness of employees. The discovery process for managers is determining the type of recognition desired.
One employee may be all smiles from public recognition, but another may feel awkward. The takeaway is to know your audience.
The recognition must be genuine and sincere. Include specific details in your recognition. Your attention to detail shows the employee that you care, and you’re sincere.
Effective leadership gives credit where credit is due. Excellent leaders go out of their way to give credit.
Let’s revisit KPIs. One of the benefits of KPIs is to both track progress and also make it easy to give recognition.
At the same time, ensure that recognition tools are available. From incentive programs to gamification to different ways to say thank you. Find the mix of tools and programs that fit your culture.
Do this today, and your employees will be thanking you tomorrow.
Are you thinking of a liquidity event?
When it comes to your liquidity event, you have one chance to get it right, and you better make it count.
If you want to capture the best deal instead of any deal, ensure low employee turnover. The lost time, productivity, and money from employee turnover aren’t necessary.
How do you go from a high level of employee turnover to a low one?
I have a confession for you.
The strategies of preparation are the same strategies for growth.
I should know. In my liquidity event journey, I created the 9-step roadmap of preparation. The 9-step roadmap helped me welcome a 9-figure offer.
Today, I pay it forward and help business owners master the 90-day Deep Wealth Experience. At the heart of the Deep Wealth Experience is the 9-step roadmap.
After all, how can you master something you’ve never done before?
Please don’t make the fatal mistake and believe the skills that built your business are the same ones to sell it.
Preparation is the gift that keeps on giving. Through preparation, you position your business for success. Having employees who are happy and motivated leads to higher growth and profits.
When it comes to employee turnover, where do you start, and what do you do?
Please start with the first strategy and stay with it until mastered. Once done, move on to the next strategy and repeat the process. Before you know it, you’ll have mastered all five strategies.
You can do it. I know you can.
Here’s to you and your success!
Your Biggest Raving Fan,
When it comes to your liquidity event, are you leaving millions on the deal table? Visit www.deepwealth.com/success to learn more