How to keep your employees happy and lower your turnover costs

I have explained my job and studies to many people over the last few years. I basically sum it up that I want to help make employees happy at work so they come back the next day. Some people look at me a little cross-eyed like I’m some feelgood hippie that just walks around with sage smoking in an office to ward off evil spirits. Many many many more people’s eyes light up and say something to the effect of “man we could use someone like you.” To the owners and managers out there, listen to your employees that want someone like me to help you help them. It’s not about being a feelgood hippie type. It’s about doing some simple things to set yourself and employees up for success. Just think of all the things you have to do if they get unhappy and leave.

You spend money on the lost productivity of an unsatisfied employee or absent employee. You have to pay to advertise a new position availability if they leave or are fired. You have to train them, which again costs money and lost productivity from your trainer. Background checks and reference checks cost money. The time it takes to recruit and review resumes will have to come from somewhere (another loss in productivity and more money thrown away). Overtime to catch up on all that lost productivity. On top of the unanswered question of how many customers were alienated by an unhappy or overworked employee? These are all costs that can be minimized if you just do things right the first time.


1) Treat your employees like they deserve to be treated or like you would want to be treated. It’s the golden rule. Not hard. Let’s move on.

2) Train effectively. If you are going to take the time to train a new employee do it right the first time. Don’t waste your and their time as well as your money doing an ineffective job. By laying out the rules, regulations, expectations, and tools necessary for the new employee to feel comfortable and confident in their ability to do a good job for you. They will always have questions, that’s normal. But the more you can limit the 2nd guessing of themselves and of your company the better off they’ll be, the more confident in your decisions they’ll feel, and the more productive (ie more money they’ll make for you) they’ll be.

3) Be just and fair. I’ve written about this before ( but I can’t stress this enough. Everything else is derivative of this concept. Your training is derivative of justice. Promotions are derivative of justice. Bonuses are derivative of justice. Your feedback and employee reviews are derivative of justice. Etc etc. If you have an employee who feels they were passed over for a promotion because they were unjustly treated, the process for selection was bogus, or they weren’t even considered then guess what: They probably won’t work as hard or as long for you anymore. That isn’t to say you have to pander. People can handle being told “no” if it’s done fairly. If you need to take the time to sit down and discuss the decision process with them then it is well worth your time to do that. Which brings me to my last point…

4) Keep communication lines open. As I’ve told several managers at this point, there is no difference in what you say to your employees and your kids, just how you say it. Don’t condescend to your employee, but make sure they know exactly what it is that you want from them. Then give them the freedom to go do it (