Tips + Strategies, 17 October 2019

5 HIRING MISTAKES TO AVOID TO REDUCE EMPLOYEE TURNOVER AND INCREASE CUSTOMER RETENTION

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Mistake #1: Hiring people you ‘like’ or with whom you have common interests or backgrounds. 

Instead, hire people who are aligned with your company culture.

  • Before hiring anyone or anyone new (if you’re already staffed), make sure your company’s core values and mission statement are clearly defined and documented.                                                                           
  • Look for attitude, enthusiasm, and potential over work history. Skills can always be taught, but ones’ character and ambition cannot.
  • When everyone lives by the shared values, working with those of the same mindset and mutual goals will elevate the entire productivity and happiness factor of all employees.

 

Mistake #2: Hiring for a “Cultural Fit”  

Instead, hire to fit your defined culture, instead of hiring for a “cultural fit”.  

  • “Cultural fit” implies the same background, age range, educational, career path or socio-economic background (borders on illegal discriminatory practices). “Fit defined by your culture” looks for mutual understanding and desire to strive for companies defined values thereby creating their culture and ethos, providing diversity and thus a broad wealth of ideas and problem-solving techniques.                                                                                                                                                                                                           
  •  Utilize Personal Assessments to determine the right fit for the team and the right position for that employee (conative strengths indicate ones’ innate and instinctive method of operation to maximize one’s potential and productivity).

 

Mistake #3: Recruiting & Interviewing externally only

Instead, to reduce employee turnover and foster good team spirit, hire from ‘the inside out.

  • Ask your great employees to refer their family and friends. Positive people attract positive people. Committed and loyal employees attract other committed and loyal employees.                                                                                                                                                   
  • Ask your current team to contribute to hiring questions and the hiring process. This creates ownership and meaning within your staff.and loyal employees.
  •  Have candidate shadow in different areas with different employees and then ask for their feedback of the candidate as a team-player.

 

Mistake #4: Looking at new hire as a quick ‘for now’ solution

Instead, hire (right) to not fire.                                                                                                                                                                     

  • Hire slow, fire fast. Take your time to find the right pool of people who will be aligned with your values, to vet them properly, and then of course, onboard and educate and train them fully. When you know it’s not the right fit, act swiftly to minimize negative impact.                                                                                                                                                                                                              
  • With low unemployment, you’ll be tempted to just fill your positions with warm bodies. RESIST! It won’t be beneficially in the short-term or long-term. On the contrary, it will cost you more with all associated costs (hard and soft) of employee churn: recruiting, interviewing, discord, educating, re-training, shadowing, team morale,… only to start over again. And your customers will feel this chaos!                                                                                 
  • Are you making a business or butter? Stop the Churn! Hire for longevity. Invest in your people, and they will be vested in you, your business success.

 

Mistake #5: Not asking the right questions

Instead, prepare a list of specific questions using your brand’s values and verbiage to use repeatedly for consistency.

  • Write specific job descriptions using the language of the company’s brand values so applicants know what to expect from the start, even before they apply.
  • Don’t be hypnotized by one’s resume. Ask open-ended questions that tell you about not only their past experience but how they handled conflict, being unsatisfied at work, working with others different from themselves?             
  • Find out what’s important to them! While they’re interviewing to work in your business, they’ll want to know that it isn’t all one-sided. More and more, employees want to be involved and work for something bigger than just the company, or even themselves.

Hiring mistakes lead to unhappy and disengaged employees. This creates high employee turnover. Gallop Reports the cost of replacing an employee is 34% of their annual salary.

If you want to see what the exact cost is to your business based on your actual number of employees, salaries, and your numbers, we invite you to plug in your data on our employee churn cost calculator at www.jillraff.com/employeechurncalculator. We think it will be eye-opening!

Other Useful Resources:

Get your Entrepreneur CX checklist: www.jillraff.com/cxchecklist

How to Double Your Restaurant’s 5-Star Yelp ratings in just 10 days: www.jillraff.com/yelp

How to Double Your Hotel’s 5-Star Trip Advisor Ratings in 10 days: www.jillraff.com/tripadvisory

 

To learn how we can work with you to co-create and implement a customized plan of action that closes the gap between potential and achievement of stellar customer experience, please contact our Founder and CEO, Jill Raff directly at jill@jillraff.com or +1.917.887.5899.

 

© Jill Raff 2019