Fundamentals to Frontline Employee Retention
By David Angers | December 2023
Across the home service business landscape, companies regularly credit managers and sales staff with the contributions that lead the organization to growth and success. But the soul of every organization lies within the efforts and dedication of frontline employees. This commonly overlooked cohort is the lifeblood of a company, often tasked with daily customer interaction and the execution of strategies handed down by the leadership team. But just as often, efforts to keep this group in place are out of balance with their level of importance.
Many businesses believe they have a retention plan in place and do ‘enough’ to keep their frontline workers from wandering off, an all to common misassumption. In one study on the subject, a Harvard Business Review survey asked managers to list three established policy components for frontline worker retention, and then asked a group of blue collar workers to list the benefits missing from their employment. The two lists were nearly identical. The retention practices managers assumed were in place were precisely the ones valued by workers, but weak at best and often non- existent. By changing the planning and execution of retention practices, companies can greatly enhance their ability to retain talent.
Companies have largely come up short in their retention efforts even as the pandemic fades into the pages of history. Phenomena such as the Great Resignation of 2022 drove major changes in the workforce as frontline workers sought better pay, flexible hours, and safer working conditions. Too many businesses blame outside forces like society and local governments, or the fickle nature of this brand of worker for retention failures. But much of this struggle is the result of a poor understanding of the best strategies to finding great workers and keeping their teams engaged and happy. Home service businesses can stem the tide of worker churn by implementing three key policies that have been proven to shore up the ability to maintain a strong frontline workforce without sacrificing the bottom line.
Individual Recognition
Imagine the sense of belonging workers experience when each feels seen, heard and valued by their managers, regardless of their role or status within the company. This is precisely the approach taken by The Container Store, a successful specialty retailer that credits this cultural component with exceptionally high retention levels envied by their peers. The company reports that through community-building activities and feedback loops, employees are encouraged to share their ideas, successes, and best practices, creating a supportive network within stores and across locations. This camaraderie and healthy competition contribute to a positive and engaged workforce.
In our experience rehabilitating small home service businesses, we find that culture is often the area most in need of repair, as staff members who are disgruntled naturally deliver substandard service, contributing to a drag on revenue. The result is low customer loyalty and elevated customer acquisition costs as consumers look elsewhere in the marketplace for value. This is remedied by encouraging constructive feedback from staff through group collaboration, and by providing an unobstructed path to their manager’s office for open dialog. Workers who contribute ideas that are recognized are left feeling respected and gratified by the role they play in the wellness of the business.
A healthy culture provides staff with the tools to produce at a high level and establishes a framework to spotlight those achievements in a formal and public way. By reviewing the details of each individual performance in a group setting, managers at once elevates the hero’s impression of the company, and begins to establish performance benchmarks for the rest of the staff as they learn the behaviors that are important to the leadership.
Education and Career Growth
Research has shown that benefits outside of pay can greatly influence an employee’s decision to stay with a company. Ongoing education, along with stable schedules and time off often rank higher than pay, according to a study by the MIT Sloan School of Business. Companies that provide financial support to workers committed to continuing education through schools or industry certification see a marked increase in employee retention.
Despite working in an entry-level position at Disney that comes with a modest wage, the twenty- something daughter of my colleague is exceedingly loyal, in large part a result of the company’s continuing education programs. She’s willing to adjust her lifestyle to accommodate the amount she is paid in return for access to the educational benefits which are a higher priority for her, as they provide a clear path to advancement opportunities within the company.
In addition to education, many entry-level employees are hungry for opportunities to expand their career. Just as we prioritize career growth for our salaried employees, it is equally important to support the growth ambitions of our frontline workers. Offering tangible opportunities for progression not only boosts their sense of purpose within the company, it also reduces turnover. Low turnover is often found in company cultures that provide mentorship, advancement pathways, and guidance for learning and development. Continuing education and clearly-defined advancement opportunities are at the center of a robust frontline retention strategy.
Stability and Flexibility
Maintaining a good work-life balance is often difficult for frontline workers amid irregular schedules. By focusing on the well-being of these employees through stable scheduling balanced with flexibility, companies can yield a positive effect on morale, productivity, and job satisfaction. Showing that you respect your team’s time can lower turnover, diminish absenteeism, and elevate job satisfaction. Beyond this, extending flexibility empowers staff to balance personal needs with professional commitments.
Employees also want to feel confident that their jobs offer income stability. This is especially critical for lower-wage workers who rely heavily on a steady income stream. Even a minor financial setback can be detrimental to their lifestyles. Companies that focus on providing this peace of mind will increase employee engagement and improve the likelihood of a long tenure with the company.
The Costs of High Frontline Turnover
Frontline worker turnover often remains unexplored due to inadequate measurement by companies. Turnover costs, however, are significant. Higher error rates among new recruits, distractions to supervisors, and the psychological impact on remaining employees caused by their peers' frequent departures are only a few of the costs. Often, turnover cost analysis is limited to recruiting expenses and training labor, overlooking the indirect expenses of escalated turnover rates.
Frontline workers bear the weight of crucial organizational tasks. Yet, for too long, many companies have accepted high turnover and low morale as unavoidable outcomes. The assumption that retention policies are in place has led to complacency, but it's time to usher in change. Organizations must delve deeper into understanding their workforce and recognize their invaluable contributions. While strategies to attract and retain white-collar talent are commonplace, it's essential to extend these practices to elevate those at the organizational pyramid's base, forming a more stable foundation upon which everything else relies.
