Profits vs. People: The Key to Reducing Employee Turnover

After writing the post titled: The Key to Reducing Employee Turnover https://relmes.wordpress.com/2008/08/24/the-key-to-reducing-employee-turnover/ I found this quote from Mary Kay Ash founder of Mary Kay Cosmetics http://www.marykay.ca/en/, one of the largest and most successful direct selling organizations in the world:

“Of course I’m concerned about profits and losses. I just don’t give them top priority. If you treat people right, they will work more efficiently and the profits will come in.” – Mary Kay Ash

It sounds like smart advice from a very smart business leader.

The Key to Reducing Employee Turnover

Employee turnover is crippling many organizations.

Here are some thoughts on this subject from Leigh Branham, Author of the book titled: Keeping the People who Keep you in Business. http://www.keepingthepeople.com/ (excellent book)

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Which is more expensive, the cost of doing the things necessary to retain your most valuable people, or the cost of losing and replacing those people?

The companies that achieve dramatic reductions in turnover are often the ones at which the top executive or owner makes the commitment to do something about it.

When the CEO is committed, the organization usually falls in line.

If your CEO is not committed enough to retaining the right people as a long-term business strategy, it may be only because he or she has not yet realized the cost implications and long-term business consequences of continuing turnover. If you run the numbers, most CEO’s and CFO’s, of course will pay attention to them.

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In my experience, I have found this to be true, because as I often say,

“The number one sport in business is watching the boss.”

And when the boss see something as important, the employees take it a lot more seriously.