High Employee Turnover

[Waxman]

My company is experiencing what I perceive to be a high rate of employee turnover this year.

I have let go employees recently for theft and insubordination.

Without going into specifics, I am disappointed with the attitude of my 30 year old and under employees. They seem to have a prideful sense of entitlement, coupled with a lack of honesty and accountability; offering immediate excuses for clear and non-personal feedback regarding job performance issues, as well as outright theft.

Management style has remained consistent for 15+ years, yet employee problems are cropping up with increasing frequency.

Is it me?

 

[rph9168]

Have you changed the standards of people you hire?

 

[Waxman]

Perhaps I have, in that I failed to go with an instinct I had to not hire an employee I did hire and it ended after 4 months.

What standards have worked for you in the past?

 

[Earl Weiss]

There has been a sad societal shift from thinking that the USA is a land of opportunity to thinking it is a land of entitlement.

 

[Waxman]

As a manager, I find mysellf repeatedly explaining to employees that the manager's job is to maintain high standards and that means that their work is subject to manager's approval.

The manager is often met with resistance in the form of excuses and poor attitude. Problem is that the company has set a high standard customers have come to expect and that is why the company enjoys a busy schedule as well as repeat business and referrals. The manager is the last word in quality control, and,as such, deals with the customer feedback; good, bad etc.

Employees get jealous or something; not sure how or why or if this is entirely accurate but it feels that way. Seems to be the employee has no concept of the struggle and level of sacrifice required in building a successful business. Employees sometimes think, after 4 months of detailing, that they know all the manager knows and can 'run the show' on their own, without any involvement or input from the manager.

My company can teach skills (and does consistently and well), but it cannot successfully teach attitude and this is the crux of this particular problem and it is frustrating.

 

[MEP001]

The manager is often met with resistance in the form of excuses and poor attitude.

I'd fire them at that point.

 

[smokun]

"Is it Me?"

After reading your comments and observing your reactions over the years, I've been impressed with your positive attitude and work ethic. That said, your comments come as no surprise; I've heard them before... especially from owners that have experienced a steadily growing success.

Is it You? Maybe. While many people are prone to simply blame everything on the economy, business fluctuation has always been a challenge. That's usually a healthy thing to a conscientious operator because it keeps your focus on performance and fosters innovation. But I often find that a common byproduct of success is complacency. And while I am not judging You, offering a cautionary suggestion may help improve your situation.

Your success is probably based on your paragon, and you personify what drives the growth and success. After time, all of us are at risk of either relaxing the standards that got you where you are... or assuming that everyone knows what to do. That risky mindset can be a slippery slope. It isn't a conscious thing, but rather a very subtle assumption that "everybody" knows the standards you've set, so abiding by them should be automatic. Hence, oversight changes from "teaching and reinforcing" to inspection and damage control.

(continued)

 

[smokun]

"Is it Me?"

Eventually, often when you're tired and reflecting on the problem, you wonder what happened. A common answer: Your operation may have lost its edge. The cause is usually management. Why? Simple answer is... because things gradually slide. Great becomes "good enough" and the pursuit of excellence has faded to what some may call reality (which in itself is an attitude slide). In fact, it may be enthusiasm that requires constant refueling... by way of esoteric rewards that are the basis of team-building. Motivation is an essential component of management efficacy. It is a powerful force; racing fuel to most.

Is the problem critical? It can be... but probably isn't. Get back to the original model of how you really built your successful business. Avoid compromise. Follow your gut. Insist on excellence, first from yourself, and then all others. Compensate well and frequently recognize and applaud performance. And make sure that everyone realizes that exceptionally well-satisfied customers are everyone's concern because they are the lifeblood of their future.

Problem probably solved... for now.

Just a well-intentioned suggestion...

 

[JMMUSTANG]

Waxman I have to agree with Steve, but maybe not as eloquently as he.
My Dad use to say it's "the 7 year problem".
Meaning that people in business, high corporate positions and LABOR tend to burnout beginning at 7 years.
He would say that at that point it was time for me to reevaluate every aspect, approach, plans and business model of my businesses.
To go across the street of each business and see how my customers view my businesses.
After that take a vacation, readjust my plans, views and business models to begin to start anew.
Good Luck

 

[robert roman]

“Management style has remained consistent for 15+ years, yet employee problems are cropping up with increasing frequency.”

Like an automobile, the business model is the engine of a carwash and the management model is the transmission.

If the engine isn’t firing on all cylinders or the transmission is slipping, the outcome is poor performance.

You might want to consider a visit to a repair shop.

 

[mac]

Waxman, I feel your pain. I've been going through service techs like poop through a goose. I also try to maintain high standards and I can not find people with a work ethic down here in FL. I've said for manu years that if you have employees in your business, the first thing that you are operating is an adult day care facility, and then the thing that makes you money. I look for people from the midwest when I can find them.

 

[rph9168]

Do you have an employee handbook? If you do you should use it in screening candidates. Makes sure it reflects exactly what you expect from them and what they can expect from you.

Bad hires lead to bad employees. You need to write down the attributes you want in an employee then go over them when you interview a potential employee. This may take some time and mean a longer hiring process but in the long run should mean a better hire.

How are your employees trained? Do they know how to do the work you expect? Is there some way you can formally organized those tasks required and when they were taught. You might want to consider setting the pay scale based on the skills they achieve along with their longevity. I assume you are paying a competitive wage with appropriate benefits.

I also think you might want to look at you current employees. Is there a bad apple in the bunch that might be causing some of the problems? A bad attitude in one employee can lead to a bad attitude in others.

There are good employees out there. Your job is to weed through the bad ones, hire and train the good ones and maintain a positive work atmosphere by making sure attitudes and work ethic do not slide.

 

[bighead]

Hire the personality.

Work them hard. Cut them slack sometimes even when they don't deserve it.

Treat them better than they deserve, and don't expect them to treat you the same way.

Let the burnt out ones leave, and hire them back when they realize they had a pretty good thing going on. Then get rid of them when they burn out again.

Don't take it personal. Some people just don't like to work, and think everything is owed them.

Jack Welch said about management "its a fluctuation between hugging them and kicking them in the ass" the tough part is knowing when to do what.
(Actually he stole it from his mom who said the same about parenting)

I have a bigger expectation of myself in how I treat them than I do on how they treat me and their situation, and I must say it keeps me from being disappointed in them. Most of the time...

 

[mac]

My wife and office manager have been working on me to be more pleasant around employees. And it's working. I smile a lot more. Give more compliments and relate to the job more. It just doesn't seem to matter. In Florida where I am the immigrants have ruined the construction trades, from whom I draw my applicants. If you are offended by that remark, too bad. Come down here and I'll show you many job sites where English is a foreign language. The true craftsmen have left the state.

 

[Waxman]

Employees receive one on one, on the job training during the first 30 days and then periodic one on one refresher sessions as needed.

There is no employee handbook at this time.

There are regular safety meetings and team meetings focusing on quality, specific techniques, new products or tools, specialized training (headlight restoration and scratch removal) and customer service.

Pay and benefits are competitive.

That said, there is room for improvement in our system; a formalized manual, IDA cetrification, a sales incentive plan or profit sharing, cross-training in used car sales, carwash management and community involvement initiatives.

Where do I begin?

 

[Waxman]

“Management style has remained consistent for 15+ years, yet employee problems are cropping up with increasing frequency.”

Like an automobile, the business model is the engine of a carwash and the management model is the transmission.

If the engine isn’t firing on all cylinders or the transmission is slipping, the outcome is poor performance.

You might want to consider a visit to a repair shop.

Thank you. Please explain further.

 

[JustClean]

HI Waxman,
in our previous business we started as a little family business from the basement working 9-4, earned a good living and had time for a chat...Then we grew to 35 people, were working 7-6, earned a bit more but much more headache and always on the run to get work to pay the staff. Then we sold the business and ended up as a family in the basement again What an improvement! Sometimes less is more!
That's the reason I am in the SS carwash business now. Just me and the dog! Employees? 3 semi retirees but only if I need a break. Works for me. But: I am not doing detailing.

 

[cleaning up mud]

30 years, they have not changed.

 

[robert roman]

“Thank you. Please explain further.”

As I said, the business model is the engine of the business.

A business model has several elements - value proposition, target market, value chain, revenue generation, position in value network and competitive strategy.

A management model is defined by purpose - project management model, change management model, strategic management model, etc.

I refer to business model as engine because it is important in determining profits.

I refer to management model as transmission because managers need the ability and capacity to shift operations up and down in response to changing conditions.

Consequently, the engine and transmission must be in step or the performance of the business may suffer.

 

[Sequoia]

Employees

There is a great deal at work here.

First, an employee handbook is essential. You set the rules, and the handbook is the way the rules are communicated. That way everyone knows the rules and things should run smoother once it is in place.

Next, your management approach is traditional "mom and pop" where you are the superior who reviews and judges and they are the workers who try to please ..... you. You will never fully solve your employee issues until you change this relationship and replace it with a better one.

You can change the relationship by adding metrics and measurement to your business. Find key things to keep track of, such a number of cars handled, number of complaints received or not received, number of compliments, blah blah. Or you could track something as simple as attendance and showing up on time.

The point is to publish this data regularly and share it with the employees. Now you have a new dynamic where Employee A turned in a 92% success rating and Employee B only turned in a 65% positive rating. Now it's them competing against the numbers, not them trying to please or fool you. You then take the role of being the coach trying to help those at the bottom of the performance curve. If you are willing to put some money or bonuses to the top performers this works even better.

Other suggestions?

Without knowing anything about your business it sounds like your pay rates are too low. I'm not hearing that your employees fear losing their job-- which might mean its .... just another job (not a good one.)

You might consider having employees involved in making the final hiring decision. As a manager, you do all the usual screening of course. Then get it down to 2 or 3 applicants and have each applicant come mix with your current workers for a session. Let the workers make the final decision among the 2 or 3 you chose. This sounds scary as hell but I've done it and got very very very positive results.

My .02 cents.