Changing Organizational Culture One Person At A Time

Many small business owners may not be aware of the hidden costs of employee turnover. While the causes of employee turnover may be unavoidable in certain small business (constraining salary budgets, lack of career track progression) many other factors may be in play.  The exit interview is not a forum for changing a departing employee's mind, but it may be the forum for finding out how you can prevent any future losses. In November 2012, the Center for American Progress published a study in which they estimated that: "• For workers earning less than $50,000 annually.... Business Costs to Replacing Employees = 20 percent of salary, the same as across positions earning $75,000 a year or less..." • Among positions earning $30,000 or less... The typical cost of turnover ... is 16 percent of an employee’s annual salary" So what should you ask, and who should do the asking?  Exit interviews can be done in-person or after the departure of an employee via computerized

According to a nationwide study in 2011 by Kenexa , the top 5 reasons why employees quit their jobs are: Lack of opportunities for professional development (30%) Inadequate compensation (28%) Boredom/lack of challenge (27%) Poor work/life balance (20%) Job stress and unfair treatment (20%) For small business owners, providing professional development to a growing and increasingly competent workforce can be expensive.  There are however, some good short term options for employers that do not have to cost so much.  One of the best I have come across is MindTools  .  It is a club which charges an annual membership fee ($1 for the first month, then $19 / month or $27 month ) which is well worth it.  They offer succinct articles, discussions and videos as well as reading recommendations on a host of leadership, management and other topics. Other options are often to be found in your local Small Business Development Center , and sites like bizfilings.com. Some of the most appropr