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Tips to Improve your Attrition Rate for 2014
Attrition rates are critical for success. We review 3 common areas that affect attrition while using Maslow's Hierarchy of Needs theory.
The Oxford Dictionary defines attrition as the process of reducing something’s strength or effectiveness through sustained attack or pressure. Which can also be defined as the reduction of staff through common means such as retirement and or resignation.
What is the importance of improving my company’s attrition rates?
Employees are the backbone of any company. They are the ones that make your business come to life. They generate client leads or drive sales, nurture your clients and provide your services or products at the standards you market. So it is essential to ensure your employees are happy. The consequences of an unhappy employee can be damaging to the company, thanks to the virtual world we all live in. An unhappy employee will cost you in loss of productivity, brand equity, loss of customers and much much more. “A Happy Worker Is a Productive Worker. Marilyn Tam” Common employee issues that result in the decline of your attrition rate. Employee engagement, Rewards/ Incentives and Visibility are the most common issues.
Feeling no emotional connection to your company or their co-worker’s makes for an unhealthy working environment. Our jobs take up a huge portion of our time in life, so it is important to ensure your working environment is healthy. Social interaction as well as a rewarding work environment create a healthy work place. Employees require respect, recognition as well as a challenging position with room to learn and progress further inside your company. Ways to create employee engagement:
-Employee happy hours
-Lunch with Management/ CEO/ President
-Holiday Parties (Christmas Party, Halloween, Guy Fawks, Thanks Giving, etc…)
-Employee Appreciation Outings (Riverboat cruise, Comedy club, Paintball, BBQ, etc…)
-Celebrate bizarre days (Onesie Friday, National Donut Day, Eat What You Want Day, Speak like a Pirate Day, Margarita Day, etc…)
You hired your employees because you witnessed something inside of them. You gave your employees a chance to help build your business and keep it going. Your employees are an investment to your business. With that said, just because you give them a job, isn’t the most effective way to show your appreciation. It’s highly important to show appreciation to your entire workforce in order to keep moral high. Ways to Reward/ Incentives:
-Employee of the month
-Provide lunch (pizza, sandwiches, etc…)
-Provide morning treats (donuts, pastries, bagels, etc…)
-Create departmental goals with rewards
Goals: most positive reviews, going the extra mile, meeting or exceeding set goals
prizes: movie tickets, restaurant vouchers, grocery vouchers, gift cards
-Create a rotating trophy of greatness: Each month the trophy travels from one great employee to the next. The trophy can come with additional privileges such as, come into work later, leave work early or extra time on lunch.
Share your company’s productivity reports. Your employees were hired to do a job. Let your employees see what their contributions have led to. By allowing your employees to be informed of your company’s real-time stats, this opens up the opportunity for them to feel connected and also gives them the ability to see the current state and direction of the company. Share the monthly sales reports, even if they are bad. This will allow you and your employees to increase accountability, as well as a culture of development, that will ultimately help you reach your objectives. Ways to increase visibility:
-Share monthly sales reports complete for goals and real time stats
-Hold monthly or bi-weekly team meetings and discuss the developments
-Create a dashboard on your company’s intranet that your employees have access to
-Create reports or show reports that reflect directly on the performance of each of your departments
-Create or share a management flow chart. Show the employment flow chart/ staff management structure
Maslow stated that people are motivated to achieve certain needs. When one need is fulfilled a person seeks to fulfil the next one, and so on. Maslow developed a 5-stage model in the form of a pyramid. Jim Riley (2012) explains that Maslow’s hierarchy of needs theory consists of two parts, (1) the classification of human needs and (2) consideration of how the classes are related to each other. The stages of needs begin at the bottom and work their way up, starting with physiological followed by safety, love, esteem and ending with self-actualisation. The model illustrates that in order for a person to progress on to meet the higher level needs, they must first satisfy the lower basic needs.
When you look to the Maslow’s Hierarchy of Needs each stage relates to business, example:
Stage 1: Physiological needs
These are the simple needs of air, water, food, clothing and shelter. Essentially these are the required needs to survive. Without these needs the body will be unable to function. This is why they are the dominant needs.
Salary, decent working environment
Stage 2: Safety needs
These needs include, physical, emotional, protection and environment safety. Job security, family security, financial security are different forms of safety needs.
Safe working conditions, job security
Stage 3: Social needs
The need to feel belonged, which includes love, affection, friendship and care.
Good team atmosphere, friendly supervision
Stage 4: Esteem needs
Internal esteem and external esteem make up this stage. Achievement, self-respect and confidence are examples of internal esteem needs. Status, attention, appreciation and recognition are examples of external esteem needs.
Fancy job title, recognition of achievements
Stage 5: Self-Actualisation needs
This final stage represents the need to the person’s full potential and the need to realise it. The desire to become everything that one is capable of becoming, is how Maslow describes the final stage of Self-Actualisation needs.
Opportunities for creativity and personal growth, promotion
When managers, identify the need levels of their employees, this will allow them to help them feel fulfilled. This will intern aid in improving your attrition levels.
Erik R. Miller