QSRs we work with list employee turnover as a major concern which drives up their operational costs and cuts into their revenue. However, there are companies who have figured out how to reduce turnover without increasing their costs. They are able to enjoy higher revenue because their employees stay longer. Companies that have sustained low levels of turnover are equally careful about who they hire (front door) as they are careful to create an environment that retains their rockstar employees (back door). 

The techniques we teach and share are based on what companies that are role models actually do to achieve sustained, low levels of employee turnover. These role model companies not only have sustained low levels of turnover but they are able to do this without paying their employees more than their competitors. Another way to say this is that employees at our role-model companies stay twice as long with little to no economic incentive.

How do they do it? In addition to guarding the front door, they create a work environment in which employees want to stay. In other words, they also guard the back door. Companies implement these low cost, proven practices that create a work environment that promotes retention around three points:

  1. Before the work occurs
  2. During when the work is performed
  3. After the work is executed

Before the work occurs

Companies reduce their turnover before the work occurs by:

  • Hiring the right candidates
  • Setting their employees up for 100 percent success

Two key practices that role-model companies use to hire the right candidates are:

  1. Hire for fit
  2. Ensure their compensation package is at least equal to that of their competitors.

Three actions companies do to ensure their employees are set up for 100 percent success prior to the start of their work are:

  1. Train their employees for 100 percent execution
  2. Design and write processes for 100 percent execution
  3. Establish and communicate clear and specific job expectations and requirements that all employees will be held 100 percent accountable to

Of the 5,000 service managers, directors of operations, and owners, we have surveyed, most don’t train their employees to 100 percent. We have found that on average, employees are trained to 75 percent. This means that an employee can only do 75 percent of the steps precisely as written after training. That means 25 percent of the steps are therefore done incorrectly, which causes your products and services to not meet your brand standard. You cannot get 100 percent execution with 75 percent training. You can only achieve 100 percent execution with 100 percent training. This is why the first action is to train employees to 100 percent execution.

The second action is designing and writing processes for 100 percent execution. Of the 5,000 leader survey we conducted, we found that most companies do not have their processes written to 100 percent execution. Most companies do not know how to write their process to 100 percent execution.

The third action is to eliminate misunderstandings by establishing and communicating clear and specific job expectations and requirements that all employees will be held 100 percent accountable. Managers who clearly communicate established behavior-based job expectations that’s equally applied eliminate employee frustration due to miscommunication and unequal treatment. This action removes many of the reasons employees become frustrated and leave out the back door.

During work performance

This is where you create a work environment where employees choose to perform work at 100 percent by precisely following the approved process. To reduce the frustrations employees experience while doing their job, role-model companies set their employees up for success and retain them by:

  • Holding everyone accountable to precisely following the process to enable 100 percent performance.

Enforcing 100 percent compliance with job expectations and requirements for everyone in a fair and consistent manner is the key role of the immediate supervisor. The three actions of the immediate supervisor that can most impact employees to perform at the 100 percent level are:

  1. Coaching using equal amounts of positive and corrective coaching
  2. Enforcing the rules fairly and consistently
  3. Treating everyone with respect

Supervisors can coach and enforce rules in a way that promotes retention or in a way that promotes excessive turnover. The key to coaching that creates the right environment for retention is to deliver equal amounts of positive and corrective coaching while never walking by a situation without comment that requires corrective coaching. The key to enforcing rules is to do it consistently and fairly. Inconsistent enforcement causes an environment that drives up turnover. And finally, supervisors must treat everyone with respect. This does not mean avoiding tough conversations. Avoiding difficult conversations regarding job performance is disrespectful and leads to a concept called “silent acceptance.” You can have difficult discussions and corrective coaching in a respectful manner that enhances self-esteem, not destroy it. Supervisors can hire, fire, coach, train, and interact with any employee in a respectful manner.

After the work is executed

Companies promote retention by providing both positive and negative consequences after the work is completed. Positive consequences include identifying and recognizing employees who successfully comply 100 percent with the job expectations and requirements that were outlined prior to the work getting performed. Recognition can be sincere compliments as well as increases in responsibilities and pay. Negative consequences include identifying those employees who are not meeting the job expectations or requirements which in turn their supervisor continually puts them on progressive discipline or a performance improvement plan.

Supervisors who have employees on progressive discipline or performance improvement plans must work with their underperforming employees, coaching them on how to meet their job expectations and requirements. However, if coaching is unsuccessful and these employees are unable to fully meet the requirements and expectations, then the supervisor must remove the employee from the company. Keeping bad performers is unequal treatment and unfair to employees who are meeting the requirements and expectations. Supervisors must handle employee terminations with respect.

Everything you’ve learned about reducing turnover can be distilled down to two key steps:

  1. Create a work environment where the employee wants to stay. Employees stay where they are set up for 100 percent success, held accountable, recognized for outstanding work, and treated with respect.
  2. Create an environment that sets people up for 100 percent execution through coaching, accountability, and consequences that lead to future sustained success.

McClaskey Excellence Institute’s David McClaskey and Billy Schaefer can be reached at info@mcclaskeyexcellence.com

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