The curse of low turnover
Businesses dominated by hourly employees are often plagued with high turnover rates, sometimes well above 100 percent. With such high turnover, it makes sense that these businesses should put a lot of stock in their recruitment strategies. After all, they’re almost always recruiting.
But if a business doesn’t have industry-typical high turnover rates, does that mean that the business can neglect its hourly recruitment strategy? If all your friends jumped off a bridge, would you too? Hopefully, your answer to both questions is “no!”
Even with low turnover rates, ignoring your hourly recruiting strategy can be disastrous for your business. If it were a movie, you’d hire Roland Emmerich to direct it, give it a haunting name like “Turnover’s Revenge” and launch it as a summer blockbuster, disastrous. Well, maybe not quite that dramatic, but it could certainly be bad for your bottom line.
If your business is blessed with low turnover, consider these dos and don’ts to make sure that your low turnover rate stays a blessing and doesn’t become a curse.
- Do pat yourself on the back for hiring good employees who stay on the job longer than the industry average.
- Don’t abandon your hourly hiring strategy because your turnover rates are low. Even a little turnover means that you’ll have openings to fill on your front line.
- Do consider that many businesses replace the bottom 20 percent of their staff every year to create a stronger, more productive workforce. Your voluntary turnover may be low, but strategic turnover could be in your business’s best interest.
- Don’t forget the importance of employment branding. Because you may not have openings as often as other businesses in your industry, job seekers might not recognize your brand or be familiar with your location. Keeping a presence on a job site will keep your brand or location top of mind.
- Do your research about how your competitors staff their front line. If your competition is investing in a better hourly hiring process and you’re not, then you could be putting yourself at a disadvantage when you have an opening to fill.
- Don’t forget that turnover is only one metric to consider when determining if you need a hiring solution. Do you need a more consistent process? How compliant is your process? Do your managers spend too much time reading unqualified applications?
If you hadn’t considered even one of these dos and don’ts in the past, then it may be time to find a partner who can help you update, improve and maintain your recruiting strategy so when you do need to deal with turnover, you aren’t caught off guard.