The Online Newsletter for Clients of Express Services, Inc.

Retention and Recruiting Strategies Part Three: Reducing Turnover

     Employers would be wise to remember the axiom ?a bird in the hand is worth two in the bush? when developing employee retention and recruiting strategies. Those who?ve worked in management or human resource roles know it is much more cost-effective to keep a current employee on-board than it is to hire and train a replacement.

     The cost of replacing employees can be enough to flatten an organization?s profits. With severance packages, lost productivity and recruiting and training new employees, the average cost for employee turnover ranges from 50% to 200% of an employee?s annual salary. If you are paying an employee $40,000 a year, the cost to replace that individual could be between $20,000 and $80,000. It is not uncommon for mid-sized businesses to lose several million dollars each year due to high turnover.

     To keep turnover from blowing the budget, employers must show employees they are valued and explore improved methods for recognizing and rewarding top performers. A few ways businesses can increase employee retention and reduce costly turnover are by improving hiring, providing better employee orientation, training supervisors to manage employees more effectively and increasing rewards for top performers.

      By repairing a broken interview process, managers will see a decrease in employees who jump ship after the first month or year. When interviewing, businesses should look for candidates who exude the characteristics of success for the desired position. For example, if an organization needs to hire a receptionist, making a list of the traits of an ideal employee is helpful. If the top qualities are optimism, confidence and enthusiasm, only candidates who clearly possess these strengths should be considered.

      Often times, new employees get thrown into their jobs with minuscule amounts of training. Helping employees get off on the right foot will make a monumental difference in their perspective of the company. If employees? first impression of their new employer is negative, it will be difficult for employers to improve their opinion at a later date. Properly orientate new team members by formally introducing them to their colleagues, touring the facility and providing company literature for employees to read during down time.

      Studies show that employees leave managers, not companies; this means front-line supervisors are the first line of defense in reducing turnover. Just because someone is in a management position, doesn?t mean they are skilled at managing people. Many individuals in supervisory roles have never received any training on how to successfully motivate and guide subordinates. Organizations can boost their managers? supervisory skills by offering workshops and seminars, bringing in training consultants and regularly evaluating managers? successes and struggles with their subordinates.

      Finally, it is essential that businesses show high performing employees that they are appreciated. Managers can spend the majority of their time working with problem employees who frequently miss deadlines, arrive late or struggle to get along with coworkers. But balancing time spent with low and high performing employees is important. Managers need to take the time to find out what makes their best employees tick and how they can further motivate and encourage them. Employers must be wary not to neglect exceptional performers just because they seem to require less maintenance than their lower-performing counterparts.

      While it isn?t possible to completely eliminate employee turnover, businesses can reduce its occurrence by hiring right, providing adequate training for employees and managers and rewarding top performers.

      Stay tuned for next month?s conclusion on retention and recruiting strategies.

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Conducting Effective Meetings: Plan to Save Time and Money

     ?Time is money,? and there?s no need to waste either in a disorganized, poorly planned meeting that accomplishes nothing. According to a survey done by 3M, 25-50% of meeting time is wasted. Planning ahead, setting an agenda and being efficient can ensure an effective meeting and save you time and money.

      The best way to start a meeting successfully is to begin preparing before the meeting. Choose a date and time that will be convenient for attendees and only invite people who can contribute to the meeting to maximize productivity. Send them a structured agenda outlining the specific objectives of the meeting. Each item included should have a specific start and end time for discussion, action and debate. It is also wise to include an allotted open time segment to allow for additional topics brought by attendees. Delayed or unrelated topics that were not discussed entirely should be forwarded to the beginning of the next meeting?s agenda.

      Once the meeting is in session, it is critical to keep the group actively listening. Keep the meeting interesting and members involved by having ice breakers for attendees, or allotting time for small talk before it?s time to get to business. Diversify your presentations and avoid complacency in the structure of your meetings. Don?t lecture; this is the easiest way to lose the attention of your audience. Invite guest speakers to regular meetings to provide additional perspectives and encourage questions to keep the group involved. Designate specific tasks for attendees, such as recording minutes, tracking time and facilitating discussion.

      Regardless of efforts to focus meetings, competing conversations within the room are inevitable. Although ignoring chatters often seems like the most time-efficient solution, it only worsens the problem. Doing this sets a precedent that such behavior is permissible during meetings. Although correcting the problem takes time out of the current meeting, it prevents future disruptions. Calling attention back to the conversation can be done simply by making eye contact, raising an eyebrow, tilting the head or waving the hand. When subtlety doesn?t work, stop the speaker and ask the disruptive members for their opinion on the topic at hand or inform them that it is hard to stay on track with multiple conversations taking place. Also useful is the designation of a group signal that reminds the entire group to stay on task.

      Meetings are recommended to last no longer than an average of 90 minutes. Once you reach the designated time for adjournment, summarize and record action items and delegate members to be responsible for discussed tasks. This will increase post-meeting productivity.

      Planning in advance, setting and sticking to a precise agenda and following up on discussion can reduce time spent in meetings and is a valuable way to increase profitability for your organization.

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Recognizing and Managing Identity Theft Issues Part Two: How to Avoid Information Theft

      Last month?s article showed that identity theft is a potential problem for both small and large organizations. In fact, as the fastest-growing financial crime in America , identity theft affects 10 million people per year and takes $50 billion out of the U.S. economy. The first step in preventing identity theft from harming your business is knowing how to avoid information loss, which can lead to identity theft crimes.

      Almost every business collects or uses some type of personal information on clients, customers or employees, such as home address, age, gender, identification numbers, income, employment, assets, liabilities, source of funds, payment records, personal references and health records. The first way to protect personal information is not to collect it unless you need it. The next tip is similar: if you need the information only once, dispose of it when you are finished, unless required by law to keep it. When disposing of personal information, destroy it by shredding, burning or overwriting it before you throw it away. Many thieves have stolen personal information by dumpster diving or retrieving documents from waste baskets in offices. Properly disposing of information also keeps you in compliance with the Fair and Accurate Credit Transactions Act, which mandates that all employers destroy personal information before they throw it away.

      For information that you must keep, do so with security in mind. Keep paper records locked away and computer records password protected or even encrypted. According to a study by Michigan State University , about 70% of identity theft crimes in the U.S. start with theft of personal data by an employee. That?s why all personal information should be viewed on a need-to-know-only basis by employees. Also, protect information from customers or visitors who could wander into restricted areas within your business. Similarly, make sure employees do not broadcast or reveal personal information accidentally, such as on a computer screen or in a file left on a desk that may be visible to other employees or customers. Do not use social security or social insurance numbers as account numbers or give anyone?s personal information to a source whose identity cannot be confirmed. Also, make sure real barriers, such as locks and alarms, are in place whenever your business is closed or unattended.

      Protect electronic information from hackers with firewalls and by updating your operating system as well as using software that reduces spyware and viruses. Also, never send personal information like social security numbers or credit card numbers via e-mail, because it is rarely encrypted and once you send it, you have no control over who opens or forwards the information. Also, since it is difficult to erase electronic forms of information completely, consult with an electronics specialist before you sell or throw away a computer that housed personal information. Further, make sure to disconnect former employees immediately to ensure they do not have access to your computer network and company data when no longer authorized.

      Finally, it is vital to write and enforce a policy concerning the use of personal information specific to your company so that all employees know what to do and can be held accountable for helping avoid identity theft problems. Taking steps to avoid an information breach reduces your risk of a costly identity theft crisis and helps ensure your business remains profitable and viable.

      Check out next month?s edition for more information on identity theft issues. �

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Employment Situation Summary

United States

Non-farm employment grew by 207,000 jobs in July, and the unemployment rate was unchanged at 5.0%.

Major Industry Employment for July 2005

?  Construction: + 7,000

?  Manufacturing: - 4,000

?  Retail Trade: + 50,000

?  Professional & Business Services: + 33,000

?  Educational & Health Services: + 21,000

?  Leisure & Hospitality: +33,000

?  Government: + 26,000

Canada

Employment was unchanged in July with the unemployment rate edging up to 6.8%.

Major Industry Employment for July 2005

? Retail & Wholsale Trade: + 24,000

? Health Care &  Social Assistance: + 18,000

? Information, Culture & Recreation: + 16,000

? Agriculture: + 16,000

? Manufacturing: - 26,000

? Construction: - 21,000

?  Professional, Scientific & Technical Services: - 21,000

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