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Reducing Employee Turnover

Many credit managers spend a great deal of time, effort and energy in finding the right people for the job.  They screen applicants carefully, do background checks, interview them thoroughly, and still find that employee turnover is higher than they expect.  Sometimes, credit professionals do not focus enough attention on individuals after they are hired.  An example of a bad start for a new employee would include any of the following issues:

  • Their workspace is not ready;
  • They do not have a computer, or they have a computer but do not have passwords;
  • They are not assigned a mentor;
  • There is no formal training program;
  • They do not meet often enough with their manager, or they do not receive enough feedback about their job performance;
  • The feedback they receive is not specific, or it is not constructive

Ideas for reducing turnover include:

  • Discussing performance shortfalls and successes regularly and honestly;
  • Help them to understand why they perform certain tasks, not simply how to do so;
  • Listen to their concerns and work hard to remove barriers that prevent them from becoming more efficient and effective;
  • Make it easy and comfortable for individuals to discuss their concerns and problems with you;
  • Find and correct the root causes of problems that create unnecessary and repetitive work for the department;
  • Don’t bother looking for someone else to blame when something goes wrong... ultimately the department manager is responsible;
  • Become an active listener and think before answering questions;
  • Focus on training and on cross training every member of the credit department team;
  • Make certain everyone knows when and how their performance will be evaluated;
  • If you want to demoralize your team, evaluate their performance based on issues and events beyond their control... and if you don't, don't

© 2011 by Michael C. Dennis.  All Rights ReservedMichael is the author of "1001 Collection Tools and Tips."