Turnover in spite of perks, can signal deeper trouble

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Dear Joan:

I am the administrative manager of a fairly large (10) physician practice. I am responsible for hiring and managing a staff of sixty employees who work as either professional, licensed staff and non-professional staff.

For the most part, the staff is very skilled and dedicated. However, we are beginning to see more turn over than we'd like. We expect some young people to stay a short time, since that seems to be the trend these days. Our fast paced environment isn’t for everyone. However, we are starting to see some good, experienced people leaving, too.

This turnover problem is compounded because we are struggling with recruiting some very hard to fill jobs. For example, nurses and radiation technicians are in short supply and competition is fierce. It’s not uncommon for some positions to be given a $10,000 signing bonus from some hospitals in our area.

I’m frustrated because we have been very generous with our staff. We have provided them with many perks besides a rich benefits package, such as limousines picking them up during the holidays and taking them to the mall with $100 in cash to spend. We have also provided lavish parties and special things such as when I hired someone to wash all their cars during an appreciation week. I also keep a drawer full of movie tickets, dinner certificates etc. to be used by my managers to reward their employees. I ask managers if they’re using these rewards on a regular basis. What more can I do?

What really upset me was a recent survey we took of our employees, to find out how else we could make them happy. I was shocked because we were blasted by many of our employees. One of the things we heard about was no performance reviews have been conducted.  I was tempted to fire several of them but realized that this would slam the door shut on future surveys. I am a perfectionist and their criticism hurt. It took me months to shake the anger I felt. Now, I am hesitant to conduct any more surveys.

So far, the physicians have supported my budget for these recognition efforts but if the turnover increases, I suspect it will be questioned. Am I just fighting a trend I can’t win or am I doing something wrong?

Answer:

While I was facilitating a seminar recently for employees of dental offices, one of the dental hygienists said, “Our doctor gives staff diamond bracelets when we hit our fifth anniversary and gives us generous perks like a cruise when we hit certain milestones. But we all agree that those things are nice but we’d give it all up if he would just stop yelling at us, throwing things when he’s mad and giving us the silent treatment.”

Her comment makes me wonder what issues made your employees blast you and your management team. No amount of gifts or perks will make up for festering problems on a deeper level. In fact, it might be creating cynicism and the feeling that their loyalty is being bought-- not earned.

Giving perks is easier than the real work of retention: creating a healthy workplace where each employee feels challenged and valued.

It’s fun to play the role of the generous benefactor but when the troops don’t seem grateful, it can make you feel that they don’t appreciate everything you have done for them. It’s not unlike a mother who expects her son to dote on her in return for raising him. As we all know, it just doesn’t work that way.

The fact that your employees had some negative feedback on your survey indicates that there is work to be done on the things that don’t cost a cent but are harder to implement and measure. For example, my work on retention with other organizations highlights the importance of the “Big Five”:

§         Valuing employees’ contributions

§         Giving employees feedback and coaching on their performance.

§         Challenging them and growing them on the job and beyond.

§         Involving them in day-to-day business decisions.

§         Communicating with them so they are in the know.

All employees know they can get more money somewhere else. Even though employees will tell you they are leaving your practice because of “more money” a little probing will probably reveal that one of the “big five” caused them to become dissatisfied enough to start looking for another offer.

I recommend that you dig out the survey data and start discussing it with your managers. You also need to thank your employees for being candid in their responses. You may want to involve some of them in getting more input and giving suggestions for solutions.

Start paying more attention to your managers. They are the critical link that makes or breaks the contract between your employees and your organization. Rather than focusing on giveaways, start making investments in management development and employee training. Implement systems that address the big five and you will likely see satisfaction increase.