If you are worried about the high cost of employee turnover, you are not alone. Employee turnover is a major concern of businesses from the smallest one-employee firm to the giants, and usually results in an expensive training program. The whip and chair never works except for the lion trainer in the circus, so another method is needed that will produce results without having to add “buffer” employees to cover a critical position.

I know. You already have an adequate training program, but turnover is still great. Two questions you need to answer are, “Does my training program provide an actual cost/benefit to my firm or is it just a ‘replace the one leaving’ program?” and “Should I be investing in a ‘culture change’ for my entire firm rather than just a training program? Here’s a suggestion of how you might determine the cost/benefit of your training program (or any proposed program for that matter).

DEFINE RESULTS/BENEFITS
Clearly define what you want to happen. What are the objectives, target population, implementation schedule, salary requirements, productivity change, etc. You absolutely must define these in advance or you will have nothing to judge the merit of any changes you make. Just exactly what will you get out of the program, and when? Can you “lock-in” the employee with a “training cost return” if they leave before some date? Will the program result in employees becoming more cost effective? Has the program been tested elsewhere?

GET LEGAL
The law is constantly being expanded by politicians, and your industry probably falls under some esoteric law you must comply with or suffer penalties. The best way to keep out of trouble is to check with your trade association, talk with an employment attorney, and visit others doing what you do in another town or state before you do most anything new.

AVOID RISKS
First and foremost, define the economic risks. Evaluate what will happen if you don't implement the program as well as what will happen if you do, and don’t forget the government requirements. Assigning of risk values should be structured so that a high rating on any factor will not automatically decide in favor of the program, but a low rating on any factor can eliminate a part of the program.

IS IT FEASIBLE
With government requirements and your own requirements in hand, evaluate the state-of-the-art feasibility of the program you are contemplating. For example: what are the requirements and skills required to implement? Is data processing necessary? Is specialized equipment necessary? Should you hire an outside consultant? Can you do it yourself or do you have to hire an individual or firm that meets some criteria? What pay will the employee receive before the training program and what pay after? What will everything cost?

USE OUTSIDE HELP
Is hiring an outside consultant the way to go? Maybe, but first do your homework. Is the productivity increase tied to the implementation of new plant equipment? If so, a training program consultant might be a valuable person to talk to. The equipment manufacturer will often provide training, and this may be the best win-win deal; but keep in mind that their main interest is in selling you equipment, not in teaching you and your employees how to achieve productivity increases unless you specify that in the bid. An outside training consultant can work with the equipment manufacturer, you and your employees to set up the most cost effective program; but be sure to ask if you could continue the training once a program had been set up by the expert.

If you are looking for a general increase in productivity, it may be wise to call in a consultant who is an expert in organization efficiency. This type of consultant can determine where the barriers to productivity occur in your organization and can suggest programs that will eliminate or reduce these barriers. The caution here is to make sure the bases of goal focus, communication, power sharing, autonomy, innovativeness, resource utilization, morale, adaptiveness, problem solving adequacy, cohesiveness and morale are addressed as these are often the areas where problems occur.

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Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.