Stop Losing Money Through Employee Turnover
In my time as a Dale Carnegie instructor, I’ve seen companies invest in soft skills training for their people. The results from such training is a more stable and engaged workforce. Maintaining a stable workforce through soft skills training makes good business sense. I’ve seen it lead to reduced employee turnover and significant cost savings for employers.
Companies easily implement training programs for technical skills because it’s easier to measure the ROI. So, why not the same effort for soft skills? How many employees leave because of micro-management, little recognition, and no real challenges? How many employees fail to see the vision management has for them or feel their words are falling on deaf ears?
The Cost of Employee Turnover
Recently, I read an article discussing a study which reviewed 30 employee retention studies taken from 11 research papers on the costs of employee turnover. For businesses with higher levels of turnover, this can add up to represent significant costs. A cost they can avoided by implementing a soft skills training culture. When I initially raise the idea of soft skills training to a client, it doesn’t take long before I begin hearing, “I’m too busy.” Or, “This is too costly.” Or, “I fail to see the ROI.”
In the article, the authors showed that from 1992 to 2012 the money spent to replace an employee was about 30% of a departing employee’s salary – typically between $20,000 and $50,000 a year. Take the median salary of $32,500. Employee turnover then has a replacement cost of $9,750 and that’s for only one employee. Not included was the investment of repeated time and money given to an employee prior to their departure. Research shows high rates of turnover could be lowered through changes in workplace policies. Harvard Business School professor Zeynep Ton recently wrote in Harvard Business Review:
Highly successful retail chains … have demonstrated that … bad jobs are not a cost-driven necessity but a choice. And they have proven that the key to breaking the trade-off is a combination of investment in the workforce and operational practices that benefit employees, customers, and the company … I believe that the model these retailers have created can be applied in other service organizations … [such as] hospitals, restaurants, banks, and hotels.
Dale Carnegie Training Reduces Employee Turnover
Conquest Imaging in Stockton, CA. has been a client of mine for over a year now. Two years ago Mark Conrad, CEO/President, and his executive team made the decision to invest more in soft skills training to their employees. Today Conquest Imaging actively involves their people into a couple of Dale Carnegie Programs:
and One-on-One Management Coaching. The results speak for themselves:
“During our company’s last Gallup Employee Engagement Survey, my team showed 100% green lights in employee engagement, with a percentile rank of 98!!! I am ecstatic!”
“Since I started using Dale Carnegie’s principles in leadership and communication, I am more connected with my team. My team is living the vision they wrote and are performing above and beyond the goals we set as a team! ”
“The employee engagement score indicated they are satisfied with the company and they know what’s expected of them. They feel recognized, their job is important, and are encouraged to grow. Thank you, Dale Carnegie. And thank you, Paul Bagan!”
Jacque Guerra – Director of Marketing Communication
Can we agree then that companies who do not provide soft skills training could be failing their stakeholders, management, employees, and customers?
Conquest Imaging, Gallo Wines, Niagara Bottling and Belkorp AG all use Dale Carnegie programs for their soft skills training because it’s just good business!