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Turnover Reduction
What are we talking about?How to hire and retain top performers
Why are you here?So you can learn how to make better decisions for your
business.
Who am I?My name is Maria Mayorga, and I am the strategy director
at
Real Green Analytics.
What is RGA?Real Green Analytics, also known as Coalmarch, is the digital marketing division of Real Green. We produce
BackOffice and LeadBuilder.
Why are there Legos here?Because Legos are awesome. Also, we want you to have
some fun today! This is a lot of information, but it doesn’t have to be scary!
Owner action!If you see Batman, it means there is a practical action you can take to help improve your online marketing, so keep an
eye out for him!
Ready to get started?
Hold on to your pants!
Hiring ProcessThis presentation focuses on the
hiring process and reducing turnover.
Why is this important?
Good hiring practices are going to save you time and money.
In a service business, you are only as good as your people who
interact with your customers.
My hiring experiences
Raise your hand if...you have ever made a bad hire!
Making a bad hire is expensive
Your people will have the biggest impact on your company.
What is the largest expense on your P&L?
Payroll
What costs us $4k in three weeks and only increases exponentially
every day it exists?
A bad hire
We should look at employee turnover as an expense so that we
see the real costs involved.
It happens to everyone
Triangle Pest Control struggled with high turnover for many
years.
In 2010, TPC had approximately 12 team members.
Of those 12, only 3 are still with the company.
In 2011, TPC had approximately 15 team members.
Of those 15, only 5 are still with the company.
In 2012, TPC had approximately 18 team members.
Of those 18, only 11 are still with the company.
In 2013, TPC had approximately 20 team members.
Of those 20, only 18 are still with the company.
Over the course of just 3.5 years, they lost a total of 14 people.
10 were let go
4 resigned
What were they seeing?
A turnover rate north of 50%.
Those bad hires cost them over $56,000.
They knew they had to make a change.
Do you know what your turnover rate is?
How do you measure it?
Decide your time frame for tracking.
Count the number of employees that left
Calculate the average number of employees you had during that
time.
Divide the number of people who left the company by the average
number of employees.
Multiply that by 100 to determine the percentage of turnover.
10 / 40 = 0.25 x 100
= 25%
I recommend tracking these numbers by month so you can identify seasonality trends.
What you can do about it
Get the right people on the bus!
How do you do that?
1.Develop a strategic objective
2.Write a scorecard for each position
3.Write 90 day objectives
4.Find the right people to interview
5.Develop a thorough hiring system
1.Develop a strategic objective
The strategic objective sets the standard for holding people
accountable.
It establishes a system to filter out the
wrong people.
It is a document that details what kind of company you want to be,
your company values, your culture, what you do and more
importantly, what you don’t do.
We’re passionate about marketing, technology, design,
research, usability, and practical strategies that get results for our clients. We believe in excellence,
and in HUPPSA.
HUPPSA
Well, if you say it like Huzzah, it is kind of a cheer, and now
you are cool.
HUPPSA
H
Helpful, considerate
U
Upstanding, humble
P
Passionate, hardworking
P
Positive, fun
S
Smart, talented
A
Authentic, honest
Triangle’s Core Values“...As a company, we are disciplined, performance driven
and accountable to both our customers and our company for results that we produce. We have and
foster a culture of 3 basic principles: Fun, Organization and Execution. We believe that when you are at work you should be having fun. Having fun allows us to perform at a higher
level and enjoy doing it. We also believe that it is better to try something and fail rather than doing nothing. E.g. we execute on new ideas and opportunities. Finally, we
believe in standards and structure. We believe a culture that embraces fun, execution and organization provides an
overall better service to our team members and our customers.”
Train all employees on the strategic objective.
2. The Scorecard
3. Write 90 day objectives
Now, we are going to talk about the hiring process
Who would be interested in improving the quality of your
workforce?
This is one of the biggest and most important things we do.
We went from 5 people to 18 in just over a year and only lost 1
person using this hiring process.
4. Find the right people to interview
3 part sourcing strategy
Marketing, referrals, bench.
Marketing, referrals, bench.
Where do we find candidates?
Marketing, Referrals, bench.
How many people have a referral program in place?
Over 50% of TPC’s team members have been referred
by others.
Our entire management team is referral hires.
We provide a $500 bonus for every referral hire.
Marketing, referrals, bench.
Find quality candidates before you need them.
We want to have 3 candidates for
each position.
Don’t do it alone!Use your team to help build your bench.
5. Develop a thorough hiring system
What do we look for in candidates?
Hobbies outside of work
Usually already employed
Demonstrated ownership in something.
Alignment with company values.
Make your job descriptions accurate as
possible!This will help to weed people out.
The Interview Process
The pre-screen and
cover letter
Start with phone interviews
Ask questions from the scorecard and job description
Learn about the candidate.
Ask questions based on the company values
Don’t do all the talking!
Personality Tests
Don’t forget to do reference checks!
Systems and Procedures
We have a checklist for everything we talked about.
We also use an awesome tool to save us time.
Benefits
So, what results did we see?
TPC reduced their turnover rate to 10%
Ours is less than 8%.
All of the planning and preparation doesn’t work if you don’t have the
right people to execute it.
What have you learned?
You know why it is important to
reduce turnover
You know how to measure turnover
You know how to update your
hiring process
THANK YOU!
Maria MayorgaStrategy Director, Real Green Analytics
Helpful Books
Get a free assessmenthttp://www.realgreen.com/experts
Get in touch!twitter: @mariamayorga1
linkedin: www.linkedin.com/in/mariaemayorga/
email: [email protected]
Questions?Time permitting.
