If a person says to you "It's easy to reduce turnover, just pay people more?

Question

money" - what is your response to that statement?
Respond

Answer 1

That's not entirely true. My previous employer (a very large corporation and household name) had very high turn over. Their response was to raise our pay, quite a bit actually. In fact, our people (about 10 of us) were the highest paid in the nation. Really, we got paid a ridiculous amount of money for what we did.

But it didn't solve a thing. We still had high turnover. They worked us long hours and made us work 6-7 days a week with different days off each week. That meant people often went weeks between days off. Even when we went above and beyond what was expected of us, no one ever got a thank you. The best we got was "Thank you?? You want a thank you for doing your job? We pay you too much as it is. I'm not going to say thank you for that." Believe it or not, that was a direct quote.

I stuck it out for 2 years. I eventually quit to go work for one of the competitors. I make less money these days but the company I work for respects me and I love them for it.

Answer 2

It costs a lot to lose an employee - advertising for a replacement, interviewing candidates, hiring, starting employee packages, putting together insurance and benefits packages, training, etc, etc, etc.

If a company was consistantly losing good employees to higher-paying jobs, then they should certainly look at their compensation packages.

But to make a blanket statement that better pay would reduce turnover is putting the cart before the horse. There may be many other reasons employees leave. Hours of work, management personalities, difficulty of the job, the physical facilities where the work is performed, and a lot of other things can cause turnover, too.

My response, then, is: "Pfffft. That's a simplistic approach to a complex problem."

Answer 3

I think the reduce turnover must do the followings.
1) Decent wages.
2) Communicating abilities in dealing with superiors and subordinates, top management to provide the clearing indication of the company's aims and goals, what the the expectations of employees and the employer.
3) Provide adequate on going and on the job training to all staffs make them keep their capability advancement to meet the future and present needs.
3) Provide financial support for emplyees want to advance their individual skills and knowledge.
4) Create a sense of belonging to every employee and make them feel like at home in the working place. This can achieve by means of the concerns for each employee's financial situation, health of each employee and family members,provide immediate support to each employee when needed.
5) Create a social circle for all employees, such as picnic and party frequently.
6) Educate and influence them that money is the top priority for everyone of. This is the most difficult task for all employers.

Answer 4

There are studies that show that most people don't leave a job because of the pay, they leave because they don't like their supervisor, or the working conditions. You can pay people all you want, but if you are a bad boss, you're going to have high turnover. Conversely, if you can create and environment where people love their work and feel valued, they will put up with being lower on the pay scale.
Take a look at: http://www.clemmer.net/. He explains it really well.

Answer 5

A positive work environment includes decent pay. It also includes lots of other things -- professional attitudes, a seriousness of purpose, sane work loads and sane work relationships to name a few. Any of those go out of whack and turnover can be high.

Answer 6

There must be a reason for high turnover, first is usually money.
The second is working conditions. Pay them what they are worth!

Answer 7

our people get paid what they are worth.
a biz can only pay if the employees work .

Answer 8

Please do your own homework