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COLUMN SDPAA News

LYNN BREN | SDPAA DEPUTY DIRECTOR

Retention Versus Replacements

Turnover, while a wonderfully delicious pastry, is not a word that most like to hear in the workplace. Turnover is natural due to a retiring employee; however, some turnover is sudden and unexpected.

As you all know, the SDPAA experienced turnover recently due to the retirement of Jerry Krambeck, and we are thrilled to be training Becky Brunsing to take on his role with our organization. Jerry planned his retirement and this plan allowed us the opportunity to carefully consider not only how to fill his role, but also to ensure that we were prepared to train that person to conduct the expected duties that Jerry was leaving behind.

As I attended the Finance Officers’ Workshop earlier this year, I was surprised to learn that there were over 30 new finance officers in attendance. Since that time, I am aware of a handful more municipalities who have experienced turnover in that role. We are also hearing about turnover in the leadership roles in our county auditor’s and other offices across the state. Unfortunately, the bulk of these departures are not due to long-planned retirements.

Annie Muller reported in an article posted April 8, 2022, that private sector companies with under one thousand employees will incur expense of over $1,000 to train a new employee. This does not account for the additional costs associated with recruitment nor increased salary and benefit demands (Mueller, 2022).

That cost may not accurately reflect the increased cost of the new employee in a time when salary and employee benefit expectations are growing at a rate often higher than what our actual budgets can accommodate. This cost also does not account for the lost productivity of the balance of the staff who will take time to get to know the new employee, or who may have hard feelings against due to someone who was passed over in favor of the new hire.

Muller noted in her article that it can take as much or more than six months for an organization to recover the costs associated with the new hire investment (Muller, 2022).

While not all turnover can be avoided (I mean, I could not make Jerry work forever, right?), some turnover might be able to be avoided.

The first step to avoiding turnover is to recognize why an employee may be looking to leave their employment with your organization. The top reasons employees leave their employment include seeking higher compensation, lack of opportunities for advancement, and lack of respect at work (Parker & Horowitz, 2022). Your turnover could be due to a whole host of other reasons, but these top three seem encompassing. Let’s look at how we can avoid turnover due to the top three.

While our organizations may not be able to offer higher compensation, there are other methods of compensating employees that go

Retaining your employees is a much better deal. Studies indicate that it takes more than six months for an organziation to recover the costs associated with a new hire. Photo: iStock.com/pcess609

beyond money and can go hand in hand with making our employees feel more respected. During exit interviews that I have been involved in, departing employees have indicated that if they felt more valued, they wouldn’t necessarily have been looking to leave, and that the increase in pay was a bonus to a fresh start.

There are a variety of methods for making employees feel more valued. Recognition programs praise employees for going above and beyond - they help to show an employee that they are appreciated for their hard work and dedication. Recognizing accomplishments will also give employees a feeling of value and create loyalty to the organization.

Many groups, such as the SD Governmental Finance Officers Association recognizes outstanding members of their organization each year. It’s amazing how much a small gesture of appreciation or recognition goes!

Organizations which encourage a “train your replacement” strategy create employees who are more easily promoted from within. This will help raise employee morale as they recognize that your entity is committed to retaining loyal employees who seek to embrace all opportunities for learning and advancement, limited though they may be (Indeed).

Organizations that foster strong teams will find themselves the envy of surrounding communities. People are naturally drawn to strong teams, so rather than finding yourself facing turnover, you may be facing interest in positions which are already filled.

Leadership teams, especially our councils, boards, and commissions, should seek out innovative methods for improving and fostering positive employee morale and work environments. Promoting trainings and educational opportunities, as well as recognizing those employees who are excelling at their positions will increase employee morale and reduce the amount of turnover that organizations face.

The internet has a variety of examples and ideas for creating your own unique employee appreciation and assistance programs. Leadership teams which exhibit confidence in their employee teams will likely see a higher level of dedication to the leadership team and the community that these teams serve.

Of course, not all turnover can be avoided, but you can prepare your organization for the process of filling those vacated roles by creating and encouraging “training your replacement” type of policies and programs. Training staff to be able to take over critical responsibilities enables not only the organization to rebound more quickly from an unexpected resignation or termination, but also allows organizations to run more smoothly when staff is on both planned and sudden absences from work. For these programs to work, everyone involved must respect the process and place the best interest of the organization ahead of their own. Creating and fostering environments of trust and respect will reduce turnover and increase productivity.

As we look at the turnover in key roles across the state, the SDPAA is working with our partners at the SD Municipal League and SD Association of County Commissioners/SD Association of County Officials to create programs which foster a healthy learning environment for those who serve the citizens of South Dakota.

Watch for upcoming information about new programs and opportunities for training available. As always, we encourage Members to seek out the existing training offered through the SDPAA. For those who are not Members, please visit our website at www.sdpaaonline. org. ■

Indeed Editorial Team. (n.d.). Valuing employees: 15 ways to make them feel valued. Indeed Career Guide. Retrieved August 10, 2022, from www.indeed.com/career-advice/career-development/ valued-employees

Mueller, A. (2022, April 8). The cost of hiring a new employee. Investopedia. Retrieved August 10, 2022, from www.investopedia. com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx

Parker, K., & Menasce Horowitz, J. (2022, March 10). Majority of workers who quit a job in 2021 cite low pay, no opportunities for advancement, feeling disrespected. Pew Research Center. Retrieved August 10, 2022, from www.pewresearch.org/fact-tank/2022/03/09/ majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-noopportunities-for-advancement-feeling-disrespected/#:~:text=A%20 new%20Pew%20Research%20Center,quit%20their%20jobs%20 last%20year.