Frontline teams provide the backbone for any customer facing business and with turnover across most industries at 35%-50%, strategies to increase retention are crucial to controlling escalating hiring and training costs. A recent Beekeeper survey of 8000 frontline workers suggested that poor communication was in the top 3 of reasons for dissatisfaction in the workplace. Negative elements within the workspace will most surely impact productivity and small and medium sized businesses cannot afford any gaps in efficiency as fixed costs continue to rise. Leadership that embraces a culture of open communication can easily build higher morale and motivation but time and resources are in short supply for managers but utilizing avenues of technology to provide a steady flow of information to frontline staff can increase awareness and build ownership of the business within the team.
Attrition Impacts the Business
Customer facing businesses are in the higher range when it comes to turnover as most positions are entry level but must bear the brunt of customer service as well as other operational duties that may be part of the business. Attracting potential candidates, hiring and then training them is a costly process, especially for small businesses. Attrition soon after hire can be costly on different facets of the business:
- Repeat the attracting, hiring and training process, doubling the cost of that hire at the very minimum
- A sudden departure could decrease efficiency and increase workloads on existing staff
- Morale could be negatively impacted by turnover situations, resulting in even less productivity from frontline teams
Building happy work environments is challenging, especially at the frontline end of the labor spectrum but employing strategies and cultures that reduce or eliminate turnover can help control hiring and training costs for small businesses.
Technology Sends the Right Message
Beekeeper, a frontline employee engagement platform, said in a recent survey, that lack or poor communication was one of the top reasons for reduced productivity and efficiency among frontline staff. With time and resources at their limits, getting information to frontline teams can be challenging for managers and supervisors. But keeping staff informed and aware is one of the core building blocks to a high motivation and morale which leads to greater productivity. Technology could come into play to help convey important information and also keep individuals engaged within the workspace. Deploying business notes and information on hardware such as tablets and handhelds could easily get important information right into the hands of employees. Advanced communication systems could convey info to staff in real time and require acknowledgement to confirm receipt of messages. Information screens in lounge and non-customer traffic areas are also effective at communicating important business related notes and news. While the general feeling is that screens and technology are an impersonal way to communicate, their effectiveness is undeniable as adoption of screen based hardware continues to surge.
Trends for Small Business in 2024
A recent American Express survey mentioned in US News & World Report suggested that US small business owners were optimistic for growth in the coming year in spite of the gloomy economic outlook and continually shrinking labor pool for qualified frontline personnel. Focusing on productivity and efficiency will be the name of the game for small business in 2024 as fixed costs such as rent and utilities will continue to climb. Even the smallest organizations depend on frontline teams and managers who promote a culture of open communication will enhance the ‘daily grind’ and in turn, minimize costly staff turnover. With time and resources in short supply, SBOs can adopt affordable and easy to access technology that can assist in providing communication to those in the frontline teams, reducing or eliminating a key factor in workplace dissatisfaction. Real time information and communication can also build a culture of ownership within the team which can supercharge productivity.
The Bottom Line
Small and medium sized businesses that depend on customers for revenue cannot afford to have a ‘turnover problem’. Attracting, hiring and training potential employees is getting more expensive and controlling turnover in frontline areas of the business is critical in maintaining those costs. Communication is one of the major factors that impacts job and worker satisfaction and with attrition rates very high in this area of the workforce, focusing on open communication is a necessary priority in reducing and eliminating those costly quick staff turnovers. Good communication cultures within businesses will also drive motivation which will always positively impact productivity. Technology and hardware can help build and promote open and transparent communication between the company and critical frontline teams.