Career Testing
Career Testing
Career Testing
ENTREPRENEURSHIP / OCT. 21, 2014
version 3, draft 3

How to Avoid Fuelling High Labour Turnover in your Business

Running a business isn’t easy especially when it comes to establishing a harmonious sense of purpose with your employees. Moreover, how you pull this off matters a great deal because high labour turnover is largely attributed to poor employer-employee relations whichever way you look at it. Talk of inhospitable working conditions, low monthly pay or even draconian employee regulations, the cohesion between employer and employee matters a great deal. With that in mind, a challenge presents itself...

How does one avoid fuelling high labour turnover in their business?

#1 Be Reasonable in Drafting of Rules and Regulations

It’s rather unfortunate how some businesses result to draconian rules and regulations pertaining employee affairs. More astounding are the harsh and unreasonable penalties that come with them. And when these businesses experience high labour tunover, fingers are pointed at negligible anomalies regarding employee performance. Yet what such businesses don’t realize is that with time, this derogatory reputation spreads around through rumours, gossip and slander. Soon enough, other employees follow suit since they’ve got the confidence and strength in numbers to back them up. We see this in movies all the time - uprisings that come up when tyranny reigns supreme, so there’s no rocket science here...

#2 Exercise Professional Indifference in Handling of Employees

Your business is your business and as such, you ultimately dictate how it’s run. Having said that, I’m sure you’ve got one or two favourite employees. Don’t worry, this is common - but the problem now comes in the overall standing of employees within your business. Do personal interests get in the way of professional reasoning? For instance, does your favourite employee always get the upper hand when disputes arise? Is your delegation of authority based on fairness and competence ranking? These are just but a few issues that require professional indifference. That it doesn’t matter whether I hate this employee or love the other, professional indifference will be exercised in employee affairs at all times.

#3 Lead by Example in Standard Execution of Procedure

It’s one thing to issue orders, but it’s a totally different scenario to show employees how it’s done. For instance, what if you found yourself in a predicament where employees complained about your stringent rules? Ordering them around without following those rules will definitely not settle down well with them and some will even go ahead and call it quits. However, showing them how it’s done will definitely turn your fortunes around. So it will no longer be about dealing with an acceptance dilemma. Instead, it will now be up to the employees themselves to outdo the boss since you’ve convinced them that you’re ready and willing to have a taste of your own medicine.

#4 Consider Employee Opinion & Concern with Respectful Decorum

Most of us have encountered rude and disrespectful bosses at some point. Every suggestion forwarded was greeted with lots of mockery and disregard. I’m sure at some point, you must have wished for real change. Now that you’re a boss, that opportunity has come. The chance to be the change you’ve always wanted to see in business leadership. It would now be unfortunate if you turned out to be more tyrant that your prior superiors. Plus, you must have personally witnessed high labour turnover back then I presume. So when it comes to considering employee opinion, imagine yourself in their situation and ask yourself, how would I like to be addressed?

#5 Draft a Meaningful Reward System for Outstanding Employees

Ultimately, every employee is on a personal mission to outdo each other. And sooner or later, you come to see that there are indeed outstanding employees who’ve got some very rare talent or skill. However, you’re likely to lose such talent especially if they’re being paid ’like the rest’ despite their outstanding skill. Speaking of which, there should also be a threshold performance review for employees that have a poor track record. This should also be under reasonable parameters of course. In essence, you’ll have established a reasonable middle ground for standard performance and remuneration while at the same time adding an attractive incentive package for outstanding employees.

So there you have it ladies and gentlemen. Labour turnover is largely dependent on how you run employee affairs. And as obvious as it sounds, you’ll be surprised how often that fact is overlooked by businesses on numerous occasions. And though harsh and draconian administration might be backed by rules and regulations, but that won’t stop high labour turnover. As French lawyer Montesquieu once said, "There is no greater tyranny than that which is perpetuated under the shield of law and in the name of justice."

Sourced Image: Labour Turnover

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