Stop Turnover at the Source: Webinar Q&A

Posted by Louis Flory

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3/23/16 10:37 AM

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We received a lot of great follow-up questions during the IndustryWeek and Effex webinar yesterday. Due to time constraints, we were unable to answer everyone. Responses to all remaining questions can be found below:

1. At my facility, the millennial employees seem to have a harder time adapting to manufacturing, any advice? 

The saying birds of a feather flock together holds true for your millennial employees. If you want to recruit the right millennial worker that can manage the challenging manufacturing environment, focus on a strong referral program. Successful millennial employees are more likely to refer other millennials that will be a good fit for your facility. 

2. What is the typical size company you work with?

We partner with facilities where Effex manages 250 or more contingent workers.  

3. Members of my executive team are often resistant to change. The mentality being “this is the way we’ve always done it, why change?” How can I convince them that a new approach to training is worth the investment?

The definition of insanity is doing the same thing over and over again but expecting a different response. If the old adage was working, high turnover wouldn’t be an issue at your facility. To get the executive team on your side, start off small with one department and if it’s successful, scale the new training method across your entire facility. 

4. Louis mentioned a 5% turnover. What is the time period for that rate? 

Monthly. By implementing the right recruiting, training, and coaching methods, Effex is able to reduce turnover rates to less than 5%. We also have a bonus program in place that awards our on-site team when turnover reaches the 2.5% mark or lower.

5. If increasing employee salary is not an option, what are other ways that I can lower high turnover rates?

Your employees are not leaving because of the money. If there is one key takeaway from the webinar, that is it. Employees want to feel valued, recognized and rewarded. To do that, we must get back to selective recruiting methods, remedial training, and progressive coaching.

6. What is the formula that Louis used during the webinar to calculate the cost of turnover?

First, identify your employment gap (average number of worker shortage each day).

The example used a 40 person gap x overtime premium of $5 per hour x 40 hour work week x 52 weeks in a year x payroll taxes and burdens = the cost of turnover 

7. To discover what is really causing turnover at my facility, what should my first step be? 

Exit interviews are an easy way to get started uncovering the truth. If no-shows are an issue, call them and do your due diligence to find out why they left. Over time, trends will emerge in your exit interviews and you will be able to tackle head on.

Let our experts uncover hidden opportunities. Request a workforce review.

 

Topics: Workforce Management, Reducing Turnover