Walter Orthmann has worked for the same textile manufacturer in Brazil for more than 84 years, setting the Guinness World Record last month for longest career at a single company.
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It’s a remarkable stretch, considering American workers now spend a median of 4.1 years with their employers, according to federal data collected just before the Covid-19 pandemic disrupted a spectrum of industries and spurred the so-called Great Resignation.
The record high quit rate—more than 40 million last year—has led to the tightest U.S. labor market in decades, with employees using that leverage to call the shots and find better jobs. They’re renegotiating everything, from their salaries and shifts to remote or hybrid work, and forcing employers to be more flexible.
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Comments
Orgs using Deming have minimal turnover - even now!
This is a great article! I love the points about finding other ways to engage employees, and how "transactional" employee/employer relationships are contributing to the turnover problem. I would like to offer a path forward for employers struggling with turnover. The Deming philosophy is all about treating workers with respect, engaging everyone in the work collaboratively, and making sure everyone is pulling in the same direction. Success, pride, and joy in work are byproducts of using Deming theories and tools - all of which bolster employee loyalty. It even works in all-remote offices, where you miss out on the usual bonding experiences.
The high cost of turnover, often driven by fear and competition at work, is one of the "unknown and unknowable" figures that Dr. Deming listed as important and manageable. If you're interested there are lots of free resources at www.deming.org.
Another reason why there are high attrition rates
There is another reason why there are high attrition rates. In a new world where people have been greatly encouraged to vent any displeaser, this has increased the vitriole on the service industry. Many are just tired of the verbal and at some times physical abuse that has been dumped on them during the pandemic. They have decided that enough is enough and have left the industry for other better paying jobs with hopefully benefits. The "kinder and gentler" voice has been drowned out by the "my way or highway' of new business models and general outlook.
Great point!
Evelyn - that's a great point about the service industry. Managers/owners who don't focus on quality services (bringing down the number of irate customers) and backing up/shielding their staff from abuse are pushing folks out of their business, if not their industry. The Great Resignation (or Great Reshuffling) has laid bare how bad the working conditions are in so many "customer service" type jobs. Places that used to pay minimum wage are now offering hiring bonuses, higher starting wages, and other incentives, but the fact is they'll never be able to hold on to employees if they don't do something to change the working conditions.
Employers Know What They Need To Do...
.... They just don't want to do it (to increase retention). The senior leaders of most Orgs are very smart people. But they simply don't care enough. Why should they? From their perspective the monetary loss of high turnover can't be well quantified, so what loss is really there? It's not easily reportable so it doesn't affect the perceived bottom line, regardless of the hidden cost. I actually think it's pointless to even argue the value of people; that should be indisputable but that's not how people are treated, everybody knows this and the sooner we all just accept it and move on the better. Especially in a hyper-competitive global economic environment. Companies do what they do best. Make their balance sheets look good. Unfortunately layoffs are a big part of that. If you want to keep people it's easy. You just treat them like one of your own. Easy to understand even for the emotionally maladept. Not easy to execute on. If profit is your God, why would you care enough to treat your employees like that?
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