Branch managers at one of the premier global cash management services companies seemed to have mastered all aspects of the business: technical, logistical, and operational. The company was making money. So no issue, right? Wrong!
Leaders and managers often ignore how expensive recruitment and staffing costs can be. The company's managers did not focus on the overall costs of turnover and this ate significantly into their profits. After numerous observations, employee complaints, and attitude surveys, they noted the problem. The branch managers were excellent workers but lacking in adequate leadership skills.
In December 2005 they decided to invest in the same talent management solutions I use in my practice. At the time, the company was facing a shocking high-turnover rate of more than 50%.
Management presented the plan as a company-wide investment, but did not insist that everyone get involved. They explained how staff would benefit personally and professionally from using these tools and that this was a company-wide strategic goal to benefit all involved.
One HR manager recalled:
"We had to tell them what we were trying to do. We basically said, 'Don't be scared to be honest with us. We need that honesty. Your managers need that, so that we know how to further develop you.' "
After initial recommendations, the H.R. Managers chose 3 tools; each helped to provide a solution to a different issue and, with everyone working together, we successfully facilitated what the company was trying to achieve.
1. The CheckPoint 360™ offered a clearly relevant starting point for discussion by laying out how individual managers were perceived on the job from all directions.
2. The ProfileXT® focused on the behavior patterns driving those perceptions.
3. The Profiles Performance Indicator™ focused on personality traits driving those behavior patterns, offering a basis for discussing which natural inclinations were helping managers on the job and which ones might create a need for adaptive skills.
During the initial execution of this plan, workshops were tailored to topics such as how to lead employees, even offering these workshops to employees who were not yet in a managerial position.
Finally, one-on-one sessions were held with managers who wanted to discuss individual progress and issues they were facing.
Overall, the company targeted their issues head-on and left no stone unturned, focusing on leadership development in all aspects of their business.
There was a significant drop in turnover. For example, turnover at 16 branches is down more than 20% monthly with recruiting costs substantially decreasing from $100,000 to $20,000 - $30,000 annually.
Company leaders are aware that this was not a one-time solution and have implemented the tools we used as a key part of their overall recruitment and talent management process.
Each year we reevaluate the company situation to ensure the tools they are using are tailored specifically to meet their current needs and annual goals.
They have decided to further invest in a fourth assessment tool in the coming year: an Employee Engagement Survey™. Instead of relaxing and resting on the good results we were able to realize, according to one HR manager: "There's been such huge improvement within our area since using these tools and services, why turn away from something that's working?" For sure, words that every dedicated business consultant strives for.