How I Handle Employee Churn
Summary
- It's important to understand the difference between good and bad churn.
- Good churn happens when someone new leaves because of a bad fit, which is often due to misset expectations.
- Bad churn is when someone who has been with the business for 6 to 12 months leaves, pointing to possible culture issues.
- Always investigate the reasons why people leave, especially those who have been with the company longer.
- If someone leaves for more money or a different career path, it's key to see if these are issues that can be addressed.
- Ask yourself if you would rehire the people who left; if the answer is no, they might not have been the best fit.
- Sometimes, employees may not grow with the business, which can cause stress.
Video
How To Take Action
Understanding Churn and Creating a Strong Business Culture
I would suggest implementing the practice of distinguishing between good and bad churn in your business. Good churn happens when new hires leave because they’re not a good fit due to misset expectations. This is actually beneficial in the long run. Bad churn, however, is when someone who's been with you for 6 to 12 months exits, which can be a sign of deeper issues like company culture problems.
Steps to Implement:
Track and Analyze Departures:
- Keep a log of reasons why people leave. This can help identify if the issue is expectations or something more intrinsic like culture.
- For longer-term employees, dig deeper into their reasons for leaving. Find out if it’s related to money, career growth, or fit within the company culture.
Reevaluate Hiring Practices:
- Reflect on whether you would rehire those who left. If the answer is no, it suggests they weren’t a fit anyway. This can refine your future hiring decisions.
Regular Check-ins:
- Conduct regular one-on-one meetings with employees to gauge their satisfaction and growth within the company. This can prevent unexpected departures.
- Discuss career paths and provide resources or mentors to help employees grow with the business.
Transparent Communication:
- Be clear about job roles, expectations, and growth opportunities from the start. This mitigates the chance of misset expectations leading to good churn.
Feedback Loop:
- Create a feedback loop where employees can voice their concerns anonymously if needed. This will help you understand and act on potential culture issues before they lead to bad churn.
By focusing on these steps, you can enhance employee retention and ensure your team grows along with your business.
Full Transcript
it always just feels like people are in and out and leaving the business constantly how could we solve for that there's a difference between good and bad churn so I would say the better kind of churn is that somebody's very new to the business and exits right whereas what many consider bad churn is that somebody's been with the business for a significant amount of time over 6 to 12 months and then they leave new turns like typically misset expectations right it was like not a Fit versus if somebody's been there for a while it's like oh maybe the company culture is an issue so I would ask myself if I were you with those people what were the reasons for leaving two of them were longer term um and I I don't know if we got to the bottom of why they were leaving I think some of them said they want more money um just want a different career path um and like one was newer so if you were presented with them today would you rehire them no well [Music] then but it sounds like caused a lot of stress maybe the business has grown and they have not grown as well
