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How to reduce employee turnover (1)

High employee turnover can bedevil your attempts to build a customer-centric culture. With people constantly coming and going you use up masses of resources and never get a customer-focussed culture to embed. The customer, presented with a parade of constantly-changing faces, can never build relationships with any of them.

In some sectors that rely on temporary employees this doesn’t matter. But, in most it does. So, here’s a tip from Horst Schulze, founder of the Ritz-Carlton hotels, on how to reduce your employee turnover:

“We derive our employee selection profile from our best dishwasher, manager etc. We analyze what the best ones do then we hire against that profile. Annual employee turnover is typically over 100% in the American hotel industry. In the Ritz-Carlton in 1992 it was 80%. By 2000 we had reduced it to 24%. It was because of the process.”

Selection was only part – but a significant part – of the process Schulze introduced and embedded. I’ll return to other parts of the process in later tips.

Source: My shorthand notes from a talk given by Horst Schulze at a conference I helped organize in London

This tip is a sample from a book series I am putting together called
One A Day
365 Practical Ways to
Get Closer
to Your Customers


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