Turnover Kills Start-ups

The topic of motivating employees and gearing them towards a long-term commitment highlights the fact that turnover can kill a start-up. You cannot afford to have a high degree of turnover. Turnover means managers must constantly spend time on human resource-related work, hiring and firing, as opposed to actually managing the venture.

Have a realistic attitude towards your employees and their workload and skill sets. If you have an employee who makes mistakes or isn’t working as well as expected is this something you can tolerate? Will you be willing to let an employee slide, missing deadlines, turning in less than perfect work, in order to create some semblance of stability at your venture? Understand the value of your employees and how it related to the overall organization. If employees that are already stressed out see that management is quick to fire employees who aren’t pulling their weight, this may force them to question their allegiance to the venture.

Bear in mind, any turnover will result in more immediate work for you, the manager. Do you really have time to pick up the slack for an employee who has quit, or has been driven off because they can’t handle the stress and workload associated with a start-up atmosphere?

Thumbs UpTry This: In order to mititgate the risk of employee turnover, constantly have ads out for new positions and interview whenever possible. While you don’t necessarily have to hire the individuals, it will give you comfort and stability knowing resource are available, should turnover occur.

 

Thumbs DownAvoid This: While creating a stable environment is important, and minimizing turnover is the best way to achieve this stability, don’t be afraid to fire an employee who is weighing down your venture.

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