What does your employee turnover rate mean?
We all know what summer means for the home service industry: you’re B.U.S.Y. This means you likely spent some time in the spring building your team to help spread out the workload. In a perfect world, you’d interview candidates until you found the perfect technician. You’d hire that perfect technician; they would get up to speed quickly and stay there for a long, long time. If only life worked like that!
Employees leave companies for a variety of reasons- maybe they’re seasonal, maybe they found a better opportunity elsewhere or maybe they just weren’t the right fit. Employee turnover is inevitable, but your turnover rate is manageable. As a leader in your organization, it’s important to not only think about what that turnover means to your company:
- How much is it costing you?
- How is it affecting your staff?
- Who’s carrying the extra weight?
- What does morale look like?
The job market is different today than it was 20 years ago. Employees are no longer willing to stay in a work environment if there is a better opportunity somewhere else. Although you might not always be able to offer the best perks, there are still plenty of techniques owners and managers can use to attract the best candidates, lower your employee turnover rate and save your company money.
Last year, in order to find out why your technicians are leaving their home service positions, we looked at employee reviews from several online review websites like Glassdoor and Indeed. These are the most common reasons that your technicians are leaving:
- Inadequate training
- Poor management
- No work/life balance
- Pay/commission structure
- No room for advancement
Has your company received complaints like this? If so, did it come as a shock to you? As a leader in your company, you have most likely been there for a long time, are well adjusted, and are passionate about your job. Occasionally, that leads to having blinders on in regards to some of these issues that are happening right under your nose. So, what does your turnover rate look like?
Employee Turnover can be calculated as
Employees that have left over a given period of time
----------------------------------------------------------------------------------- X 100
Average number of employees over a given period of time
Now that you know what your turnover rate is, what does that tell you about your company? The national turnover average across all industries is 3.5% (Chron). For pest control technicians specifically, the national turnover average is 6.5% (PCT). Knowing that the pest control industry has a higher turnover rate than other industries, owners and managers are taking this into consideration and working even harder to recruit the right candidates. According to the Huffington Post:
Cost of Employee Turnover can be calculated as:
(hiring + onboarding + development + unfilled time) X (# of employees x annual turnover percentage
Simply put- employees leaving is expensive, which is a huge motivating factor for employers to pick the right candidates, put effort into training them, and providing a work environment that’s enjoyable positive to be in.
Oftentimes, in the home service industry, it’s difficult to juggle the hiring and onboarding process because owners and managers are wearing so many different hats. You can simplify that entire process with Forgely- our automated hiring and recruiting software. It keeps all your interview notes and applications in one place. After you make a hire, it will automatically roll out a training schedule, exams and review dates. While we can’t take everything off your plate, you can at least rest easy knowing your technicians are receiving the proper onboarding and training so they can be an asset to your team for a long, long time.