Want to keep your best employees? Develop the best frontline managers.
It’s often said that employees don’t quit a company, they quit a manager. But the reality is often more complex. Even the best frontline managers often don’t have the tools and training they need to keep the best employees. And they may not have the decision-making power they need to make decisions that lead to employee retention.
Employers in many industries, including retail, leisure, and hospitality, often accept high turnover among hourly workers as unavoidable. But it results in significant cost to your company, with studies estimating the median turnover cost of lower-wage workers to be 16% of their annual salary. That number climbs to 20% of annual salary for mid-range positions. And turnover causes other problems, including an added burden on the employees who stay, and possible disruptions in customer service. Good frontline managers can help your company avoid these costs.
The first step in having the best managers is choosing the right people. Take the time to define and track performance measures that include turnover. Highlight the names of managers with turnover above normal company levels – and let them go if they continue to have an excessive number of employees leaving the company. On the flip side, offer significant financial reward to those managers with low turnover rates.
Even the best candidates can struggle as managers if their job structure creates challenges. A manager with too many direct reports, too much pressure, or too many administrative tasks can’t take the time necessary to develop and retain the best employees. For example, if managers have to achieve short-term results by requiring employees to work long hours or denying requests for time off, they will ultimately pay the price in employee burnout and turnover.
Once you’ve chosen the best managers, equip them with the tools to retain the best employees. One of the key benefits part-time or hourly workers are often looking for is flexibility. An automated workforce management platform can give managers the flexibility they need when working on schedules and assigning tasks to their employees. The ability to focus on the most valuable employees – and offer incentives – is also key. Technology can give your managers insight into the performance of their employees so that they can determine where to focus their efforts.
When you identify the best candidates and then give your frontline managers the tools, training, and latitude they need, you significantly improve retention and increase your profitability. A cloud-based workforce management solution like Workforce Go! HCM can help you choose the right managers, measure their performance, and empower them to manage effectively so that you’re ultimately keeping your best employees.