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How to prevent high labor turnover in a business

by Scott Holloway

Created on: January 23, 2011   Last Updated: January 24, 2011

Despite a tight labor market due to an ailing economy, there always seem to be businesses which have a high labor turnover. Fast food restaurants, high volume manufacturing operations, and customer service positions all have a reputation for exhibiting this characteristic. Generally seen as a routine cost of doing business, high turnover results in elevated training costs, interruptions to work-flow, and a relatively unstable workforce.  While this reputation may be well deserved in some cases, there are several things which can be done from a management standpoint to limit turnover.

It is essential that the management team establish clear lines of communication throughout the organization. Ideally, this process begins during the job interview itself. During this initial meeting it is important to clearly establish the perceived roles and expectations that go along with the position. Nothing is more frustrating to an individual than suddenly finding themselves in a job that brings with it unexpected responsibilities and situations. This holds true not only with respect to highly repetitive activities but high stress situations as well. Thus, the interview process must culminate in a successful match between expectations on both sides of the table.

A high level of communication between management and staff is also essential during normal operations. This will help to reduce the perception that events are taking place in an arbitrary manner without input from the staff in the decision making process. Providing employees with career path counseling and manageable goals to attain will provide a higher level of job satisfaction and sense of ownership. Maintaining an environment of openness not only helps to resolve problems more quickly, it also helps employees to voice their frustration over certain situations. The result will be a greater blending of expectations and goals that will translate into higher job satisfaction and lower employee turnover.

Providing a safe and clean environment in which to work also helps to satisfy certain expectations within the overall job experience. Safety in this case refers not only to physical hazards associated with the performance of a job it also has to do with providing an environment in which people are treated with respect. It is no secret that some jobs are by nature dirtier and even more risky than others. It is up to the management team to ensure that employees have the proper equipment and safety features in place

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