It has frequently been said that employees are the most valuable asset of every organization. That is true for small businesses in general that rely on a smaller workforce, and especially true for home service businesses. High turnover represents a loss of critical knowledge, skills, and manpower to accomplish the work. Left unaddressed and unresolved, high turnover in the home services sector can result in many problems. 

What Does Turnover Look Like in the U.S. 

According to published statistics, the turnover rates in many service industries appear to be problematic. Here are a few examples: 

  • Construction: 56.9% 
  • Trade, transportation, and utilities, 54.5% 
  • Professional and business services: 64.2%   

The Negative Impacts of High Turnover 

High turnover can result in inconsistent adoption of and loyalty to a company’s mission and vision, reduced employee morale, high hiring and training costs, deteriorating service quality, reduced operating effectiveness, lowered operating efficiency, reduced revenue, and reduced marketing return on investment.

Causes of High Turnover in the Home Services Sector 

High turnover can be caused by poor management. That may include micromanaging employees, a leadership style that is critical instead of encouraging, and an overall hostile environment. Employees may feel that they are overworked, have overly long work shifts, or have unfavorable work schedules. They may not perceive enough career advancement or skill development opportunities. 

Employees may depart because they don’t find meaningful work. In other words, they don’t see the opportunity to contribute meaningfully to the progress of an organization, including providing creative ideas and innovations to the enterprise.  

They may leave due to inadequate compensation, a frequent reason to depart, looking for “greener grass on the other side.” Of course, salary is not the only form of compensation. There may be other desirable benefits that a company can offer to inspire stronger loyalty and increased work effort. 

There may be some cultural issues within an organization such as a lack of camaraderie, feelings of disconnection, or distance from work associates. There may be issues of equality or diversity because all employees want to feel safe and accepted in an organization. They want to be respected, not targeted, left out, or disadvantaged.  

Poor workplace culture can have severe impacts on turnover including things like poor internal communication practices, gossip, unfriendly coworker competition, emphasis on punishment versus growth, lack of accountability, and lack of management support.  

Lack of recognition and appreciation can also cause high turnover 

Of course, there are some unavoidable causes of turnover including life events like the death or illness of a loved one, medical conditions, involvement in schooling, and childcare needs. Family relocations for various reasons can also cause employees to leave. 

How to Lower Turnover and Improve Retention 

Smart business owners will seek assistance from experts to identify turnover issues and establish stronger practices going forward. Several actions may include making sure that compensation is fair and attractive, improving advancement opportunities, and instituting a culture of care. Open communication and employee recognition are also key factors in good employee retention practices.

Choose Professional Business Coaching Expertise 

Put an end to turnover that is holding your business back from successful growth. Contact Blue Diamond Consultants, doing business nationwide, to discuss effective coaching services that will help your home services business grow. Our coaching services are proven effective through previous experience and exponential results. Schedule your free information session today.