4 Fixes To High Turnover Rate

“Help, Mommy N!” Glenda (not her real name) texted me one day. 

“Sure!” I replied immediately. “What can I do for you?”

“My employee turnover is very high,” she said. “At that rate, I’m losing my people, I’m afraid I will also lose my business! What should I do?”

Glenda lives in a city in Southern Luzon. And she is running a food business. Over half of her sales come from food delivery.

The high employee turnover comes from their motorcycle riders who deliver their customers’ food orders. And, for the past few months, the turnover rate has been steadily increasing.

Why the high employee turnover rate?

“Most of our riders have decided to move to online delivery services like GrabFood, Foodpanda, etc., probably because they get better pay,” Glenda said.

“And since these delivery services are not available in our city, we are thinking of hiring students or minors to deliver our food to solve this employee turnover problem,” she further volunteered. 

“But minors don’t have driver’s licenses, so they cannot use motorcycles for delivery,” I countered.

“Oh, we’ll let them use bicycles instead. That way, we save on gas too,” she gleefully said. “Do you think it’s a good idea, Mommy N?”

“First of all, the law prohibits the hiring of minors. And while you may save on gas by using bicycles, they may cause delays which will disappoint your customers,” I said.  

“And it is very hard to explain or appease “hangry” (hungry and angry) customers!” I further said.

“So what should I do then?” Glenda sadly asked.

As business owners, do you also have high employee turnover rates? 

How do you solve this business roadblock?

What can be done? This was my advice to Glenda:

4 Things To Offer To Your Employees To Minimize Turnover Rate

1. Give your employees all the government-mandated benefits like SSS, Philhealth, and Pag-IBIG coverage upon employment. This is not only for your employees’ protection but for yours as well.  You see if something happens to them while at work, and even while on their way to or from work, they will be taken cared of.
2. Provide them with accident insurance coverage since motorcycle delivery is riskier.
3. Give them performance-based incentives and/or other non-cash benefits.
4. Provide them with opportunities for personal & professional growth. That way, they will feel that you care for them.

If, however, you continue to experience high employee turnover even after doing the above offers/benefits, and delivery is becoming increasingly difficult, then maybe it is time to look for a better location or branch out to more accessible locations.

What do you think, dear business owner?

Please feel free to share your thoughts, experiences, and ideas! 

Remember, helping business owners like you is my oxygen! 

Photo credit: Pressfoto

P.S. If you want to understand more about your business growth stages and still do not have the Grow Your Business, Pinoy! book yet, get your copy here. If you or any of your friends would want to know what stage your businesses are in, feel free to take the assessment here.

Comments