Turnovers not only kill a company, they demolish it. What exact
variables lead to turnovers? Running an executive search firm and
seeing hires turn out both correctly and poorly, I have come to:
1. Remote Representative – Management is difficult enough 5 feet away,
let alone 50+ miles. Too often, companies feel as if they need
employees all over the U.S. when clients don’t want face-to-face
visits like they used to.
When starting your business, it is imperative that your employees
become engrained in your corporate culture. To think that monthly
visits, car allowance and a BlackBerry will take care of not having to
pay additional rent, you are not only wrong, you are about to witness
2. “Upside, Upside, Upside!” – I consistently have clients calling
into my company grossly underestimating what they should pay their new
employees only to justify disgustingly low pay with the “sky is the
Anything looks like the sky when you start at a dollar altitude of
zero. As a small business owner, if you don’t pay, the hire doesn’t
work out. The opportunity cost of training the new employees to
replace the last that left is immense. You’ll put yourself in
bankruptcy searching for that one employee.
And make no mistake, “employee” is the right term because these
individuals, instead of being entrepreneurs, want a paycheck. Give it
to them. If you can’t afford an employee, don’t bother until you can.
3. Hiring Cognitive Dissonance – For anybody who has studied the
human decision-making process, the aforementioned phrase means
something to them. In hiring terms, it translates to: stop
interviewing half the United States and make a decision.
I refer to it as “Hiring Cognitive Dissonance.” Many small business
owners think it beneficial to interview 10 applicants and feel as if
the rule “the more the merrier” applies to the hiring process. It
could not be further from the truth.
From the 5 years that I have been in the staffing business, I have see
that companies who are interviewing more than 5 job applicants for one
position don’t end up making the correct decision.
Small business owners get too excited upon hiring applicants, though
they soon learn that maybe that 2nd or 4th job seeker who now has a
job would have been perfect.