Employee turnover, especially when it’s at a high rate, is a loss. It represents a potential loss in not only productivity, but in overall continuity and shop costs. But it can be tough to figure out how to reduce the employee turnover rate in auto shops. Actually, by having the right managment mindset and advanced planning in place, you can avoid the headache of high employee turnover rates all together.
Practices to reduce the employee turnover rate in your auto shop
Create a supportive and successful place of employment from Day 1.
- Create new employee materials. These materials are used for orienting new employees and by utilizing them as well as a training period, you can bring new people up to speed quicker and save thousands of dollars on lost productivity and time. For advice on hiring the best of the best employees from the start, see our recent blog post.
- Implement an orientation program. By setting up a good orientation program, you can package information and ideas so new employees can start off on the right foot. It also acquaints them with the history and culture of your organization.
- Celebrate every so often. When an employee starts or leaves (voluntarily), celebrate the occasion with a simple lunch or party. By recognizing and celebrating the arrival of a new employee, you’ll help them quickly feel a part of the team. On the flipside, by celebrating their departure, your employees can leave on good terms and with good feelings, ready to recommend your shop to others.
Check in on your employees on a regular basis.
- Analyze positions. This should be a regular practice, everytime an employee leaves, for whatever reason, analyze the job position and take the opportunity to re-engineer priorities or job duties.
- Create individual job manuals. By putting together a how-to reference guide for each employee’s individual position, your staff will have everything they need to do their job successfully at their fingertips. Things to include? Team calendars, technical data, job rates, etc.
- Hold staff and team meetings. Routine meetings help maintain continuity for you employees and your shop. They’re a golden opportunity for you and your team to learn more about each other’s duties. Make sure you have someone record and transcribe the meetings as these records can become an important reference tool for the future.
- Conduct weekly appraisals. Informal critiques or appraisals allow managers to get to know their employees better and at the same time, give them feedback on how they’re doing in their position. Checking in on your team's productivity is just one part of ensuring you're completing quality service.
Be prepared.
Keep applicant pools. By maintaining an active file of individuals who might be potential candidates for future positions, you can make sure you always have feet to fill the shoes of the employee you may you lose.- Conduct exit interviews. On the last day of an employee's employment, if they choose to leave on their own, it is a good idea to hold an exit interview. By conducting these interviews, you can better identify problems the employee encountered on the job and gain insight into what can be done better for the future.
- Set aside a transition budget. It's smart to set aside funds to help cover the cost of employee transitions. These funds can help cover the cost of temporary employees, recruitment, training and other costs involved with acquiring a new hire.
By putting these processes and practices in place, you'll help to reduce your overall employee turnover rate by keeping your employees not only happy but satisfied with their place in your shop.
