Storage Business Owners Alliance
30665 Northwestern Highway  Suite 100
Farmington Hills, MI 48334 USA
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(248) 254-9000
Phone: (248) 254-9000
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Email: info@thesboa.com

How to Retain Good Employees: A Company Culture Checklist

Date: 2/28/2018

Whether you are a new owner of a storage facility or a seasoned multi-property owner, employee retention is one of the greatest challenges you may face. Studies show that the hard costs of replacing a salaried employee average 21.4% of that salary and that does not include the soft costs including temporary loss of productivity as existing employees adjust to a higher workload to cover reduced staff, decreased morale, lost efficiency as the new hire gets up to speed and the time whole team dedicates to explaining, correcting and training the new member. Unfortunately, that is the cost of doing business and it is not getting any better. Employees are now only staying on the job for an average of 1.5 years.

It is particularly challenging when a key employee, a great one, leaves a company. The departure of a valued employee can not only impact the team or department, but may negatively impact supervisors and managers as well who may be left wondering if they are to blame. After all, we have all heard the phrase "People do not leave a job, they leave a manager."

The truth is, if your business is losing highly skilled, highly valued employees faster than anticipated, it is time to do some self-evaluation and look closely at your corporate culture. In order to avoid the high costs of turnover, take a look at the following areas:

Company Vision

Do all of your employees understand your mission and vision? Not just the financials as, unless your employees have stock options, those goals are not significant to them. Employees want to participate in a mission and work toward goals that are meaningful to them, not just generate profits for management

Diversity and Inclusion

Do you fairly and equally hire, compensate and promote all employees regardless of race, gender, age or orientation? No one wants to work in an unfair workplace. Be sure that your hiring and retention practices are fair and that nobody has to work harder to earn the same rewards. Include your vendors and suppliers in your diversity plans as well.

Personal Incentive

Your strongest employees want to be challenged, included and given opportunities for growth. Do you know what their goals and aspirations are? Have you helped them see a future and progression within your company or do they feel like their best chance of advancement is elsewhere? Are you rewarding good work with increasing autonomy or the opportunity to work on new or special projects? Nobody wants to work at a dead-end job and nobody wants to be micro-managed. Show your employees respect, give them new challenges and help them envision a future for which it is worth working.

Morale

Even your best employees will have a difficult time staying positive if their team suffers from low morale. If the team is unhappy or not working hard, your best people may feel like they are pulling too much of the weight. Productive, unified teams help drive employee engagement and reduce turnover. Help your teams and departments do their best work and stay motivated.

These cultural factors heavily influence an employee's happiness on the job and can be addressed by thoughtful, attentive, transparent changes in how your company interacts, communicates and cultivates talent.

When you are trying to reduce turnover and hold on to key employees, do not rely on exit interviews to give an accurate assessment. By the time an employee is on their way out, they have disengaged. They want to move on with little fuss and a good reference, so an exit interview is not the best measure of your performance as a manager.

Instead, connect with your employees while they are still working for you. Make sure they know you support their goals and aspirations, that you recognize and reward strong performance and that you are actively seeking their input and listening to their concerns. Employees who feel recognized, valued and heard and who have a role in shaping their own future and the future of the company, are engaged, committed and likely to stay.

Another way to combat employee turnover is to partner with an HR outsourcing company. Companies like AlphaStaff offer storage owners the tools and assistance needed to retain top talent. To learn more how we can help, contact Vice President of Strategic Business Development, Jeniece Carter-Henson, at JHenson@AlphaStaff.com or at 727-365-6722.