Rigging Industry and High Turnover.
How to flip the Coin in Your Company’s Favour.
(HRD) - It’s no secret that oil and gas companies that hire employees to work on job sites experience significantly higher turnover rate than other industries. Hiring new employees is expensive because they require orientation, training, uniforms, and time to adjust. This means productivity drops for your organization, not to mention the loss of experience that your old employee had with the methodology and cultural cohesion of your organization. In Northern Alberta, many new companies have sprouted to cater to increasing demands in harnessing energy from the oil sands. Many of these organizations are plagued with turnover rates of over 25%.
There are a number of factors that contribute to this high figure, but almost all of them can be mitigated to improve employee retention, and thereby your bottom line.
Bridging the Communicational Divide
The main reason for high turnover is the lengthy periods spent away from home. People are social; they require regular interaction with their friends and families. Technology is your best friend to curb this issue. Allow your employees time during the day to interact with their families via Skype. Foster an organizational culture which makes it possible for people to communicate via multiple channels so that distances are shortened between your employees and their families. Create spaces where employees can communicate safely, and in a manner that does not interfere with their work.
Some employees will leave a company because a competitor dangles a better paycheck in front of them, but in fact, there is more to job satisfaction than money. The reason this happens is the lack of distinguishability between the job satisfaction you provide and what the competitor provides. Keep your wages competitive, and at the same time, cultivate an environment that rewards your employees for accomplishments and benchmarks in their career. Monetary bonuses can work, but also awards for work ethics, safety incentives, and loyalty rewards will increase employee satisfaction. Gamify your workplace so employees can win every now and then. Recognition is a mandate for employee retention because it makes them feel good about the work they are doing and strengthens the connection they have to your organization.
Make your employees feel safe. Of course, this means training them in best practices; moreover, offer them job safety and reward their continued commitment to your organization. Make them feel like a part of the team and distinguishing yourself from others as the organization that cares for their people. If employee can trust an employer to meet their needs, loyalty will be the natural outcome.
High turnover creates a culture of numbers. As more people enter and exit the doors of your organization, fewer connections are developed between individual people. This leads to employees not knowing the names of the people they work with. Drive your organization towards being people centric and your bottom line will follow. Lowering your turnover will increase your organizational efficiency, differentiate yourself from others in the industry, and cause good employees to seek you out. Success is in reciprocated loyalty and trust.