Invest in Team Members to Conquer Employee Turnover
Employee turnover will continue to have a significant impact on service businesses in 2023. In addition to the direct costs associated with recruiting and hiring, the disruption of replacing team members has a ripple effect that can slow your business, damage team morale, and reduce your company’s overall productivity and effectiveness.
An unpredictable economic climate and labor shortages have recently exacerbated these potentially costly disruptions.
The changing dynamic between applicants and employers compounds the urgency of the situation. Traditional roles in employment negotiations have shifted dramatically in recent years. The unprecedented demand for skilled workers gives job seekers powerful leverage. On the other hand, employers have less flexibility when it comes to hiring decisions.
Retaining top employees has always been an essential part of success in the field service industry. These days, it’s a critical challenge that business owners must solve to thrive and position their companies for long-term success and growth.
What Drives Turnover?
In addition to today’s job market volatility, several other factors, including recognition, opportunity, communication, and job satisfaction, can lead experienced team members to leave.
If team members don’t see a meaningful future at the company, they will feel they have no reason to stay. Employers must offer a path for advancement and engagement for team members to feel invested.
Team members want to know the following:
- That what they’re doing makes a difference.
- The company they work for is invested in their future.
- They’re recognized by management and leadership for their efforts.
- There are growth opportunities and advancement available.
Compensation is also a factor, but it’s rarely the primary reason for employee turnover. Team members who feel valued and see opportunities ahead are less likely to jump from a secure position for marginal wage increases. Additionally, valued and invested employees will calculate benefits such as flexible scheduling, health insurance, retirement plans, bonus incentives, workplace culture, and salary.
Becoming THE Place to Work
Successfully managing turnover in 2023 doesn’t come without a cost – but it’s a long-term investment with positive returns for your business. Take the time and effort to create a place where people thrive, and you’ll become the employer of choice in your service area – the company that people in the industry talk about and recognize.
Every marketplace has at least one company that stands out for excellence and opportunity. They offer an environment and culture that attracts and retains top talent. Employees are proud to work there and talk positively about their experience. Customers appreciate the professional service and value delivered. The employer of choice is where people want to work and whom potential customers want to do business with.
How can your company become the employer of choice in your market?
- Invest in Your Team. Offer training opportunities and prepare transparent career paths and compensation guidelines. Pay team members fairly and provide quality-of-life benefits that enhance their lives and the lives of their families.
- Manage Your Reputation. Most potential employees are reading your reviews and keeping an eye on social media. They’re watching how you respond to customers and the community’s overall impression of your integrity and professionalism.
- Build a Positive Culture. Revisit your company’s mission, vision, and values and either reaffirm your commitment to them or update them to reflect your investment in the community you serve. Building a great team is about more than hiring qualified employees. It takes a conscious effort to be the best and provide team members with the tools and support they need to get there.
The changing demands of the employment market for service providers require a new approach. We’re experiencing a true transformation of our industry – there’s no going back to how it used to be. Contractors who can adapt to the expectations of a new generation of employees will find themselves delivering excellent service that will help them stand out from their competitors. The current market challenges are an opportunity to focus on what it takes to build a great team – and a great company.
About the Author
Chris Koch is a Head Coach and Trainer for Business Development Resources (BDR), the premier business training and coaching provider to the home service industry. With over 25 years of HVAC industry experience, he has experience in commercial service, residential HVAC, and plumbing spaces. Chris has a passion for building teams and provides the hands-on experience that BDR coaching clients have come to expect. Learn more about BDR at www.bdrco.com.