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Managing: Five tips to reduce employee turnover

Radiology Administrator's Compliance and Reimbursement Insider, July 1, 2005

High turnover-defined as 50% or more of your employees leaving and being replaced within three years-is one of the most expensive problems facilities face, says master's-certified business coach Terri Levine of North Wales, PA, chief executive officer of CodingInstructor.com. The cost to find, train, and employ someone is significant-especially if you repeatedly incur these expenses.

Most facilities don't realize how high their turnover is or how much it costs them. "When I go into a hospital and start pulling up statistics, they're flabbergasted," Levine says.

The good news is that you can improve employee retention with five simple steps:

1. Offer a competitive salary and benefits package.

Although compensation isn't necessarily the most significant condition in keeping employees around, it's the most obvious. Referring to the adage "cash counts," Levine recommends offering salaries that are competitive with neighboring facilities.

To obtain information about how much other facilities pay, call a few and conduct a survey. As long as you agree to keep names confidential when you reveal the results, other facilities likely will share their averages for various positions.

Don't overlook benefits. Some employees will take jobs with lower salaries in exchange for better benefits, Levine says. Health benefits are of particular concern. Try to keep employees' health plans-and their contributions- stable from year to year. Also look into other perks staff will appreciate, such as tuition reimbursement for career development or computer classes.

Another key consideration: When it comes to requests for time off, be reasonable, says Levine. Although most organizations have systems to handle employee vacations, unplanned time off can be a touchy subject. On one hand, you want to allow employees to attend to personal matters during work hours when necessary. On the other hand, you have a business to run.

Develop policies that benefit the worker as much as possible in cases of unexpected time off such as illnesses, emergencies, and family responsibilities, Levine says.

2. Set clear expectations. Clarify employees' job tasks and your expectations, says consultant John-Henry Pfifferling, PhD, an applied medical anthropologist and director of the Center for Professional Well-Being in Durham, NC.

When those expectations are unnecessarily ambiguous, employees tend to resign more quickly than you would expect, Pfifferling says. Confusion often leads to conflict over whether employees do their jobs well. And without knowing how to satisfy their employers, employees become frustrated and eventually throw in the towel.

Provide precise job descriptions and openly share your facility's vision, goals, and objectives. Talk to staff about the big picture, including topics such as community leadership, to motivate them to give their best.

Remember, they must understand the individual objectives-the steps they must take to reach goals-to perform in a mutually satisfying way, Pfifferling says. Regular meetings with staff to address these goals can help staff feel they contribute to your success and ensure consistency, he adds.

3. Deal with conflict. Longstanding, unresolved grievances eventually cause workers to seek employment elsewhere. Don't deny that conflict exists in your organization; instead, deal with matters promptly, Pfifferling says. Draft a conflict-resolution policy that outlines how you will handle disputes.

"Much unnecessary turnover is due to a toxic or intimidating work environment," he adds. Don't allow disruptive behavior to set a bad tone. Address in a written professionalism policy those behaviors you will not tolerate (e.g., gossip or favoritism), and define consequences.

To ensure fairness, appoint an objective source (either internal or external) as an informal judge or mediator, Pfifferling says.

4. Demonstrate trustworthiness, support.

Lack of trust in employers is the number-one complaint among employees with whom Levine conducts exit interviews. Former staff may say their employers didn't really care about them or even made fun of them behind their backs, she says. Even if you address unacceptable behavior in a written policy, you can't "unhurt" a person's feelings.

Along with trust comes support, which employees need to sense, Levine says. "When people come to work, they just don't leave their baggage at the door." They may talk about family, relationship, or financial problems, reaching out to coworkers as an extended family.

Workers should be able to rely on employers to keep information confidential and provide moral support. If you offer an employee assistance program as a benefit, make sure staff know the program exists and how they can access help.

5. Foster professional growth.

Happy employees have a sense of autonomy and empowerment, Levine says. "They don't want to be micromanaged or second-guessed. They want to be able to give suggestions [that are] listened to and taken seriously."

Even though you won't carry out every idea, consider all of them and encourage employees to provide continued feedback.

Employees also need the right level of challenge, Levine says. Bored or overwhelmed employees are more likely to leave. If you witness either extreme- employees flipping through magazines and chatting or stressing and complaining that they don't have time to go to the restroom-make an adjustment.

To entice employees to excel, design career ladders for each position.

Even in a small organization, you can increase a person's responsibility (although not necessarily his or her workload) or create a new job title.

This incentive gives employees something to aspire to, Levine says.

Tip: See this month's training tool below to view Levine's employee morale assessment.

Sample employee morale questionnaire

This questionnaire is designed to gauge the condition of your employees' morale and how they feel about the organization.

It will highlight the areas where morale is lowest and enable the organization to take steps to rectify any problems. The questions are in the form of statements allowing for a selection of responses.

Employees: Answer the questions using a grading scale of 1-5.

1 = never 2 = rarely 3 = sometimes but not very often 4 = often but not always 5 = always

Questions: Rate 1-5

1 I am happy to come to work every morning.

2 I can do my work without fear.

3 I feel secure in my employment 4 I feel supported, valued, and appreciated.

5 I have access to managers/supervisors when I need a decision made.

6 I know what is expected of me in this job.

7 I am given adequate training, authority, and resources to enable me to do my job.

8 I receive feedback on how I perform my job that is helpful and not just critical.

9 I am provided with a safe working environment-physically and mentally-that is free of harassment.

10 My work gives me a feeling of accomplishment and pride.

11 I am given sufficient responsibility in my job.

12 The duties of my position are clearly defined.

13 We are all treated equally and with respect-there is no discrimination.

14 I am able to maintain a reasonable balance between my family life and work life.

15 We have fair and equal opportunity to air grievances in a safe environment without fear of persecution.

16 I am happy with the pay levels here and believe I am paid well for my contribution.

17 I am happy with the employee review system.

18 I am involved in decisions affecting my position/work.

19 We all participate in problem-solving.

20 My manager supports me in my professional development.

21 My manager ensures we are recognized and appreciated for our efforts.

22 I feel there is fair opportunity for advancement in the company.

23 Workload is fairly allocated among employees.

24 I enjoy my job and believe I have a secure future here.

25 New employees are given a thorough orientation.

26 I am satisfied with the professionalism shown by my fellow peers and management. There is great team spirit.

27 Employee turnover is reasonable-not high.

28 Senior management is open and honest.

29 The company has a great internal communication system.

30 The company is managed well and we trust the leadership.

31 The company provides great employee benefits.

32 We enjoy good morale in this company.

33 The company consistently fosters good employee relations and morale.

34 I am committed to this company's success and take pride in their success.

35 I am optimistic about the future of the company.

36 Overall, I am very happy with my job and place in the company.

Any other comments?

Tip: Fax completed questionnaires to Comprehensive Coaching U at 215/699-3153 for a free assessment. Include your e-mail address, fax number, and telephone number.

Source: Terri Levine at Comprehensive Coaching U. Visit www.comprehensivecoachingu.com, call Terri at 877/401-6165, or e-mail her at terri@coachinginstruction.com.

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