Golden Eggs to Revenue: 4 Strategies for Retaining Your Top Talent

100x100-handshakeAs I visit entities within the collection industry, it is easy to see that some of the cultures inadvertently diminish the value of those that produce the golden eggs each day.  In doing so, turnover within the organization is an expensive problem.  In truth, turnover will always exist to some extent but your ability to limit it can be the key to extra profits.

It is a good idea to take a look at your culture, management, and environment and determine if there is something that could be changed to slow the pace of the turnover within your shop.  Salary.com claims that turnover costs an organization 120% to 150% of an associate’s salary if they call it quits in one to three months.  This cost is associated with the money to find and train a new worker as well as the time for the new employee to reach competency.  Due to this it makes sense to focus on what it takes to create an environment where people want to stay.  One of the ways to identify what will help to keep people in your shop is to look at what drives people away?

Forbes brought to light a study conducted by Accenture that determined the main reasons why people quit their employment.  The top four are listed below:

  • Don’t like boss
  • Lack of employment
  • Internal  Politics
  • Lack of Recognition

You may note as I did that each of these areas can be solved with successful management practices and clear communication. Four practices to help eliminate the above hindrances and create a successful environment are as follows:

1. Provide Feedback

Through our research we have learned that appropriate feedback given to an individual is one of the greatest motivators you can utilize. People want to know where they stand and how they can be better. In grade school it did me no good to get a paper back with a “C” on it without any corrections. I didn’t know what I needed to change which was extremely frustrating. The same can hold true for your staff if proper feedback isn’t given. Let them know where they stand in a professional and motivating way. Motivating staff helps your environment to be a place people want to work.

2. Understood Career Path (Vision)

Everyone deserves to know how great work can pay off. When there isn’t a seen benefit of hard work, it can instill the desire to work somewhere else where solid work is rewarded. By giving your people a review and instilling vision of what is possible you will keep your solid collectors longer.   3. Clear Communication
My way or the highway doesn’t work long term when communicating with associates. Every individual has communication methods they prefer to use within a conversation. It is well known that a collector needs to cater their approach on the phone to maximize the possible return by a consumer. The same holds true for a supervisor. A manager that communicates catered recognition to their associates increases satisfaction, collections, and morale within an entity. Learning to cater your communication to your people will help to eliminate frustrations of your people and keep them longer.

4. Training

Providing the right tools to enable a collector to improve their ability to reach their goals is essential. This could include anything from the right supervisors to the right technologies to help motivate individuals by giving them belief of success, purpose, and direction. Anyone that isn’t focused on improving themselves can get stuck in a rut, especially in collections. A rut is a red flag because often production diminishes until they quit. Tools to improve one’s craft go a long way in showing an individual how they can become successful.

Gallup conducted a survey of 1 million US workers and concluded that poorly managed businesses on average are 50% less productive and 44% less profitable than well managed groups. They also concluded that “people leave managers not companies.” As we look at our organizations it is important that we align our practices with those of success, rather than model ourselves after the farmer that killed his golden egg laying goose. By clearly communicating deserved recognition, a clear career path, helpful feedback, and providing the necessary tools, you will be on your way to an environment that invites people to stay.

Limiting turnover not only helps to build profits, but it also makes the workplace more satisfying for all.

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