Women in Agriculture Educators’ Conference Baltimore, MD March 23-25, 2010

Employee Turnover-- Symptom or Disease?

Chuck Schwartau University of Minnesota Extension

Turnover: It’s Really a Lack of Retention

Teaching Hint Good place to use Turning Point™ 1.How many employees on your farm? 2.In the last two years, we have lost one or more employees we would really like to have kept.

Why Do Employees Leave?

Signs of Low Morale excessive absenteeism or tardinessabsenteeism high turnoverturnover poor work quality increasing number of errors in work necessity to re-do work frequently lack of enthusiasm about work jealousy or fighting among staff members complaints from customers about service The Business Owner's Toolkit ™

Perceptions of Factors Affecting Morale Employees' RankItem Employer's Rank 1 (6) Interesting work5 2 (1) Appreciation and recognitionrecognition8 3 (2) Feeling "in on things"10 4 (4) Job security2 5 (5) Good wageswages1 6 (7) Promotion/growth3 7 (9) Good working conditions4 8 (8) Personal loyaltyloyalty6 9 (10) Tactful disciplinediscipline7 10 (3) Sympathetic help with problems9 Niebrugge, Vicki, Declining Employee Morale: Defining the Causes and Finding the Cure, NOVA Group (report of same apparent survey at Univ. of AL HRM Conference – 2009)

Factors Affecting Employee Morale treated fairly valued and appreciated for their work recognized for their work paid a fair wage for their work doing work that is important

Positive Actions Hire right in the first place! Orientation Training Personal contact Positive feedback Opportunity for personal and professional growth Support some outside activities Family and cultural considerations Recognition Flexibility in work schedules Employee engagement The Business Owner's Toolkit ™ and others

Recognition Options – Low Cost Write personal notes to employees Create a "year in review" booklet Give courtesy time off Give credit when credit is due Put up a bulletin board Have a "Friday surprise" Get a traveling trophy The Business Owner's Toolkit ™

Retention Strategies Pay competitive wages/salaries Provide flexibility Champion longevity Respect employees Increase and improve communications Pay retention bonuses /

Starting Retention at Hiring Employees with 2 years experience Sirota Survey Intelligence

Determinants of Job Satisfaction Achievement Recognition The work itself Responsibility Advancement --Herzberg et al

Other influences Herzberg’s “hygiene factors” –Company policy and administration –Technical aspects of supervision –Salary –Interpersonal relationships (boss and peer) –Working conditions »Herzberg et al

Avoiding Unnecessary Turnover Motivated bosses inspire motivated employees REMEMBER No one can give an unmotivated person motivation Have confidence in your staff & let them know it If they know you think they can do a first class job, they will strive to do their best for you. Motivation comes from wanting to do something PRAISE OFTEN Agriculture ITO – Managing Y9our Team, 2007

Worker Satisfaction Talk to employees regularly in both formal and informal settings Conduct deliberate surveys of employees –Might want to use outside people to conduct the interviews so privacy can be maintained

Costs of Turnover Upsets routine Costs of hiring temporary replacements Costs of recruiting/selecting/hiring new employees Time to train new employees Costs of the employee who leaves mentally but keeps coming to work Makes animals uncomfortable May affect health and safety of animals

Reduce Turnover with Exit Interviews Is there an immediate reason the employee is leaving? Are there some things that could be changed that might have enticed the employee to stay? What was good about working on a farm? Do they have suggestions that might help the farm?

Minimize Turnover by Hiring Right in the First Place! Hire the right amount of labor for the needs Hire the right skills in your people Hire people with the right attitude Be clear with applicants and employees what you expect and then be consistent

Some Reasons for Turnover Work scheduled changed Incentive system not clearly understood Job is no longer ‘fun’ Working conditions changed Training was not thought out or followed through Poor communications Lash, 1998: NPPC Employee Relations Conference Lash, 1998; NPPC Employee Relations Conference

Positive Aspects of Turnover Turnover isn’t always bad! Helps bring in fresh ideas May be the key to changing attitudes among employees Provides an opportunity to re-align staff and tasks on the farm

“I don’t worry about hiring a great employee and having him leave in three months. I worry about hiring a bad employee and having him stay for three years.” “Selecting Employees that Fit” Sarah Fogelman, KSU

Thanks for your kind attention

Chuck Schwartau University of Minnesota Extension