HOW TO DRAW THE BEST NEW HIRES IN A RECORD-BREAKING LABOR MARKET 3 STRATEGIES FOR SUCCESS
of customers you started with in 2018 by the number of customers you lost in 2018. Churn can also be measured by the value of recurring business lost or as a percentage of recurring value lost. Choose the measurement that makes the most sense for your business. Why is this number so important? Think about it this way: Beyond representing how many customers flew the coop in 2018, churn represents an exponential loss of profit. Each year those lost clients don’t do business with you, you lose a year’s worth of potential revenue. By tracking customer churn throughout the year — ideally quarterly — in addition to end-of-year churn, you’ll begin to notice trends that you can address. Does the highest churn always happen in the third quarter? Did you sell more subscriptions in 2018 but lose more longtime customers in the course of chasing those leads? Noticing how these threads lead back to your losses is the first step in decreasing your churn rate. Of course, it’s impossible to calculate your customer churn if you haven’t been tracking and measuring it throughout the year. If you haven’t, you now have the opportunity to do so for the coming year. Add monitoring these numbers to your resolutions for 2019. 2. GIVE NEW HIRES THE CHANCE TO GROW. The best employees constantly hunger for new growth and development opportunities. Show prospective hires the potential heights they can reach at your organization. First, your business has to have a growth mindset that promotes loyal employees and empowers them to step into exciting new roles. Then you need to present prospective employees with challenging, rewarding projects and responsibilities and show examples of how those who’ve come before them have succeeded. Annual reviews and raises are a start, but you should also explain how a job at your business will improve your prospect’s skills, career, and life. 3. GET THEM IN THE DOOR. If you already offer a legitimately competitive salary, an expansive benefits package, and a good work environment with opportunities for growth, the only challenge left is to get on your ideal candidate’s radar. One of the best ways to do this is to implement an employee referral program. Ask your team if they know anyone who’d fit the empty role. If you end up hiring their prospect and they stay on the team for, say, six months, then reward the referrer. Cash, PTO, and other benefits will encourage your loyal employees to bring in their skilled friends.
Finding good employees has always been hard, but in the economic environment of 2019, it can feel downright impossible. At the end of 2018, U.S. unemployment was the lowest it had been since 1969. For months, unfilled jobs outweighed the number of people seeking employment. In a market where job seekers have the pick of the litter, employers face stiff competition when courting prospects. Here are three strategies to draw in top performers and keep them. 1. PAY MORE. Excellent benefits, fancy perks, and flexible hours are important items on any job seeker’s checklist, but virtually every prospect’s top priority is adequate pay. Workers today have unprecedented bargaining power, and yet, according to ADP, small businesses with fewer than 50 employees boosted wages only a little over 3 percent last year, an amount quickly swallowed up by inflation and increasingly steep living costs. There’s just no way around it. To attract top-tier talent, competitive compensation is paramount, especially in 2019.
SATISFIED WITH LAST YEAR’S PERFORMANCE? ARE YOU SURE YOU SHOULD BE? CALCULATE CUSTOMER CHURN — AND LEARN HOW TO REDUCE IT IN 2019
You’re looking over last year’s numbers, feeling pretty satisfied about the results for 2018. Production increased and you have a lot to feel proud of overall. But what about those customers or subscribers who said goodbye to you in 2018? If you haven’t yet calculated your end-of-year churn, you should feel a little less comfortable. Looking at that churn rate is key to your business’s success. Most business owners say that if they could change one thing about their business, it would be their customer churn rate. Retention is key to success because it almost always costs less to retain a client than it does to attract a new one. Increasing client retention and reducing churn in the coming year can only happen if you know what your churn rate was last year. CALCULATING CHURN It’s not rocket science! One of the most straightforward ways to express yearly churn is to calculate it as a percentage of customers lost: Divide the number
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