Eliminating High Turnover: Part 1

Reducing employee turnover in consulting

High employee turnover is an issue as old as time throughout business. High turnover is not owned by a single industry; it is pervasive throughout businesses worldwide. Most high turnover businesses use the industry they are in to justify or excuse their employee retention issues. This only exacerbates the problem within the business and makes it more pervasive throughout the business community.

Good employees are not born that way, they are mentored by parents, teachers, co-workers, business managers, and owners. Show me someone with zero skill and a willingness to work and learn, I will show you someone I can turn into a long term employee at any company. Over the years I have owned all or part of 42 companies. These companies have ranged from professional services like information technology and, my biggest success, a management consulting firm to other more blue collar companies like an auto body shop, auto mechanic shop, and video rental store. In between these I have owned restaurants, a nightclub, a bowling center, a hotel, and many more. None of these companies ever had employee retention issues under our management. In fact, if you were to go to any of these companies today, you would meet most of the people I hired as they still work within one or more of the organizations we hired them into. Those that left chose to do so in order to better themselves as individuals, although many have returned to make us even better!

Good employees and low retention are made during the hiring process. How you identify work to be done by people is important. How you match people to that work is more important. How you introduce them about the work and your organization is most important during the hiring phase. The common denominator throughout this entire writing will be communication and understanding. Communicating the requirements and needs of the company to your current employees and the potential new employees is critical to building a solid employee base.

For example, how many of you work with the team (on a regular basis) that is getting a new employee? Do you actually spend more than 5-10 minutes a day or week with these people? Or do you just see the end result of their work? During the hiring process, how many of you include your team in choosing who will be joining them as a new employee?

The easy part of hiring is having a job description made. However, it’s often forgotten or thought of as a practice that does not actually matter. If you don’t have clear and concise job descriptions, that’s easy to fix. There are firms like IA Business Advisors that can help people create and publish effective job descriptions; if you don’t have them, get them done. This is where the communication is most clear, because it is written.

Similarly, you should have an employee manual. These are as easy as job descriptions and can be resolved quickly. However, make sure this manual is pertinent to your business and honest about what your standard rules are; people deserve to know and understand the rules in an organization.

Another key piece you need during the hiring process is a Functional Organization Chart (FOC). Our clients often ask why we want to identify where their people fit in the company. The FOC goes way beyond static position identification and reporting. The FOC identifies the functions each position is responsible for individually and as part of the overall team. Further, it can be enhanced to identify common stress points in an organization, from communication issues to personality issues. By knowing the functional organization at all times, business leaders and their teams can better prepare for issues they may face, together. Also, the FOC allows for proactive development of change that moves the company towards being more stable and effective.

However, I digress. Potential employees should be provided with a clear understanding of the role they will play, good and bad. If the position is particularly dirty or difficult, identify it as such. If you make a hard or challenging position sound easy and simple, you will attract the wrong type of candidate. To understand if the potential employee can handle such a position, give them a personality test, such as DiSC. This type of test not only identifies the potential employees personality type, but it also gives you the ability to see potential conflict with your already personality tested employees; conflict does not always mean they are not the right fit as some types of conflict can often times be rewarding.

Potential employees that make it through the initial process of reading about and understanding the expectations of the company trying to hire them have a much greater chance of being viable, long-term employees. At this point in time, think about the fact that pay has yet to be discussed and no people have been met other than a brief introduction to receive the documentation to be completed and read.

The next process is the interview process. Short and direct is the key to this interview and it should be by a supervisor or manager being asked to train or mentor the potential new employees. This person should be intimately familiar with the environment and functions to be completed by the potential employee. The use of a standard interview program is recommended to keep the interview on point and it should be timed, no more than 20 minutes. First impressions are important. If you have a receptionist that greets the potential employees, they should have a few items to complete as part of the process (as they often see things interviewers don’t see).

If after the first interview this person is still interested, then have them come back for a second interview. This interview can take on a number of looks. It can be technical and offer a test of certain skills needed. Or, it can be a deeper discussion about the person’s past or work history. Each second interview program is structured to meet your company objectives; hopefully the new employee is also asking questions, even menial labor employees should be doing this.

The final interview always should include the most senior employee in the company that this new employee may interact with on a regular basis. If that is the owner, then he or she should be involved during this part of this process. If it’s a larger company and the position is farther removed from management, it may be a supervisor or other managers. The interview package should be forwarded and, as with the first and second interview, the final interview should be tailored to meet company goals by sharing more information about the environment and asking questions relevant to being successful in it.

Once you have determined your candidate, it’s time to offer the position. Regardless of the position or the offer, it should be presented both verbally and in writing. However, before we offer the job, let’s talk about pay.

I always chuckle when a business owner tells me he cannot afford to pay his employees more and then learn that he has 100+% turnover each year in a certain area of the company. Pay is not the sole indicator of happy employees, but it does satisfy some of the key issues employees face. Employees have needs and they begin with food, shelter, safety, and security, and end with belonging, friendship, self-esteem, and self-fulfillment, to name a few. (Check out Maslow’s Hierarchy of Needs.) Underpaying employees violates every single one of these needs.

Sometimes, companies truly cannot afford to pay more; the owner is not taking a salary and the company is new or battling some unexpected financial issue. Often, the owner just does not understand the finances or believes that the position is just menial and does not deserve more than is being offered, without realizing the damage being done. Let me ask you, if you have one employee and they cost $104.00 more per week, would you lose your business? What do you spend weekly that could make this available?

Your compensation package should take into account the importance this position has in your company. If your business is in need of this position to create revenue, obviously it is a critical position. If this position interfaces in any way with customers, obviously it is a critical position. Stop believing that your managers and executives are the most important people; each company is made up of important people at all levels, you get the drift?

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How to Mitigate Financial Risk Using the S.M.A.R.T. Management System

June 9, 2025

In an increasingly volatile economy, businesses cannot afford to be reactive when it comes to their finances. Whether you're a startup founder, a growing enterprise, or a seasoned business owner, the risk of financial instability is real—and growing. At IA Business Advisors, we help companies proactively navigate these risks using our comprehensive S.M.A.R.T. Management System . S.M.A.R.T. is more than just a goal-setting acronym. It is a decision-making and execution framework that brings clarity, structure, and alignment to every part of your business. From six-week action plans to one-year targets and long-term strategy, S.M.A.R.T. ensures your financial operations support healthy growth and resilience. Understanding Financial Risk in Today’s Business Climate Financial risk is multifaceted. It ranges from cash flow disruptions and market shifts to internal mismanagement and over-leveraged growth. As Brian Smith shared on a recent Daily Influence podcast episode, unchecked growth can drive a company into bankruptcy. Scaling without intention—chasing fast growth without aligning the internal team and financial resources—leads to diluted communication, quality issues, and operational chaos. Mitigating financial risk begins by understanding that more revenue doesn't always equal more stability. True sustainability comes from building systems that support intentional, well-paced growth. The S.M.A.R.T. Framework in Action: Reducing Financial Risk Our S.M.A.R.T. Management System guides businesses in creating resilient, financially stable operations through: 1. Specific: Build with Intentionality Clarity is power. One of our podcast guests, Mike Heatwole (CEO of The Dala Group), emphasized the importance of sitting down to define what matters most—whether that’s paying down debt, investing in growth, or launching a new venture. When your financial goals are specific, your strategy becomes targeted and less prone to reactive decision-making. “If we don’t know what the goal is, how do we get there?” — Mike Heatwole, CEO of The Dala Group 2. Measurable: Track What Matters Many companies are blindsided not by invisible risks, but by unmonitored ones. We help clients implement tools to track cash flow, margin fluctuations, and budget variances in real time. Visibility into your financial health gives you the power to respond early and course correct as needed. 3. Achievable: Assign Financial Stewardship Risk is reduced when financial responsibility is distributed. Through teamwide financial literacy and clear accountability, we empower organizations to make stronger daily decisions. No individual person should carry the entire burden—and no key area should go unmonitored. 4. Relevant: Make Risk Management a Habit Quarterly or biannual financial health check-ins create a sustainable rhythm. These don’t have to be complicated—they just need to be consistent. Regular reviews embed risk awareness into your company culture and decision-making process. 5. Timely: Foster Honest Dialogue Financial silence is a hidden threat. As Brian noted on the podcast, emotions like fear or shame can prevent businesses from facing financial realities. We encourage honest, blame-free communication around financial performance, creating space for solutions and collective action. Case in Point: Short-Term Action, Long-Term Impact One of our clients, a family-run distribution company, had strong revenue but was bleeding cash due to aging receivables. Together, we built a six-week S.M.A.R.T. Plan focused on accounts receivable recovery. We implemented weekly check-ins, assigned ownership, and used real-time tracking. Within 90 days, their outstanding A/R dropped by 22%, freeing up capital and restoring operational confidence. It’s Never Too Late to Get Financially Intentional Many leaders in their 40s, 50s, or 60s worry they’ve waited too long. But as Mike Heatwole wisely shared: “It’s never too late. Just get started. Do something.” Progress—not perfection—is the goal. Start small. Build momentum. Take the next best step. This mirrors a concept we love from The Gap and The Gain by Dan Sullivan: measure progress based on how far you've come, not just how far you have to go. Final Thoughts: Make Financial Stability a Strategy Mitigating financial risk isn’t about a dramatic overhaul. It’s about consistent action, visibility, and intentional decision-making. With the S.M.A.R.T. Management System, IA Business Advisors helps businesses turn risk into clarity, fear into focus, and instability into opportunity. If you’re ready to start, we’re ready to help. Let’s have a conversation about what matters most to you—and build from there.

Enhancing Interpersonal Relationships for Toxic Workplace Recovery

May 29, 2025

Hello, team! Mary here, continuing our journey through the I in Team series, where we challenge and empower you to Find , Be , and Build Your Influence. One of the most common things we’re asked to help our clients with is toxic workplace recovery. This directly connects to the culture of the team, and while rebuilding that culture takes time and intention, it is absolutely possible. In fact, with the guidance of our I in Team approach and S.M.A.R.T. Management system, we’ve successfully helped more than 19,000 teams evolve into high-performing, values-based cultures. If you’re ready to take the lead and breathe life back into your team, we’re here and ready to support you. Practice Emotional Intelligence One of the most impactful steps you can take on your toxic workplace recovery journey is to practice emotional intelligence (the ability to recognize, understand, and manage both your own emotions and the emotions of those around you). Toxic environments are often the result of emotional disconnection, poor communication, unnecessary competition, and a culture that avoids constructive feedback. Begin by shifting your perspective: respond with empathy, ask thoughtful questions, and use “I” statements. These habits model two traits, emotional regulation and empathy, that influence how your team interacts and solves problems. Start small. For example, set a personal goal to give one piece of sincere praise or recognition per day. This is a S.M.A.R.T. goal, and it starts to reinforce positive emotional exchanges. Over time, this contributes to a psychologically safe environment where people feel seen and supported. Foster Open Communication Once emotional intelligence begins to take root, toxic workplace recovery is just around the corner. Open communication becomes more natural because when team members are aware of their own and others’ emotions, communication becomes seamless. The number one rule? Listen. Really listen. Without listening, communication is incomplete. Try implementing monthly influence partnerships—team pairings that rotate so members can get to know each other beyond surface-level roles. This creates connection and, when done with consistency (Timely), fosters trust across your team. Another way to build open communication is by creating a structured feedback loop. Clarify how and when feedback should be given—perhaps during weekly one-on-ones or monthly review meetings—and make sure all team members understand the difference between criticism and constructive feedback. S.M.A.R.T. feedback is Specific and Relevant, and when delivered with respect, it encourages team members to grow without fear. Lead by Example As we say throughout the I in Team series, everyone is a leader regardless of title. Whether you’re in the C-suite or just starting your first job, how you show up directly shapes the culture of your team. To begin, set some respectful boundaries rooted in your values. Let others know what you need to succeed and what behaviors support or disrupt your work. When disagreements arise, demonstrate what respectful disagreement looks like—calm, focused on solutions, and free from personal attacks. If your workplace has leaned into competition, shift the focus to collaboration. Collaborate on micro-goals, like shared tasks or cross-functional projects. Make the results Measurable and celebrate wins together (publicly, if possible). Consider S.M.A.R.T.-based team-building events (like problem-solving challenges or goal-setting workshops) to reinforce collaboration in a meaningful way. Final Thoughts Toxic workplace recovery starts with you. Every interaction, every word, every moment of listening is a chance to model what’s possible. Show up the way you want others to show up. If your team is struggling to rebuild or you need expert guidance, reach out . We’re here to help. Let’s keep influencing responsibly and positively together.