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How to Stop the Revolving Door, an Introduction

Over the last number of years, with conversations around challenges like The Great Resignation, Quiet Quitting, etc., it’s our philosophy that if the culture was good before, the retention of that organization is likely to remain reasonably strong. It’s an ongoing topic of conversation because employee turnover can cost an organization thousands of dollars. The premise of our new book, launching in the fall of 2023, is to address what some organizations do well for their culture and what others may need to learn.

At X5 Management, we have the privilege of working in various industries. We are trying to capture successes for all the leaders who may not even realize they have a problem, even if their retention is reasonably good within the organization.


The Challenge

A lot of organizations ride the wave when times are good. When they need to be more proactive, it’s a much bigger chore because now they have to dig deep and implement initiatives. In a hiring crisis, for example, momentum is lost when the level of coverage for customers or support departments does not exist. Those are all avoidable things if organizations look at stopping the Revolving Door, not letting it get to that point where it may be spinning out of control. Employee retention is key to an organization’s success.

It is a Catch-22 to measure the costs of the Revolving Door because it happens quickly when in a short-staffing situation, creating a big workload for the existing employees and putting them under pressure. That has a negative impact on culture. Unfortunately, these pressures soon impact customer service and sales, along with morale.

We don’t know if we could put an exact cost on it because it depends on the industry and the organization’s size, but it is substantial. By far it is more costly than retaining already trained existing employees.

It eventually becomes a snowball effect; think of it as a spiraling culture where the impact of attracting people becomes a challenge. The cost is significant, and the risk to the company’s reputation is high, as is the risk of losing existing employees. This is important because the investment in onboarding and training is a significant upfront cost.

While the average cost-per-hire is $4,425 according to the Society for Human Resource Management (SHRM), the average costs of onboarding new hires is slightly more nuanced. It is estimated that the hours managers spend training their employees costs companies an average of $1,252 per hire, while onboarding paperwork is said to swallow up 10 hours of HR time. Onboarding includes induction, training, and welcome kits.

Beyond the hours spent bringing a new employee onto the team, it’s also worth noting the time that it will take for the new arrival to settle into their new role. The average time for new hires to reach full productivity ranges from 8 – 26 weeks in total, which could potentially impact your team’s output or lead to a decrease in earnings.


“Continued focus on employee turnover is of critical importance, because of the direct relation of turnover to improvements in labour costs and guest satisfaction”. – Peter Dunn


So why are they leaving?

When a plan does not exist, or is not formalized, organizations are not prepared for turnover, and they likely cannot prevent it either. A plan that outlines what an ideal organizational chart should look like in the near future (i.e., one or two years) and the more distant future (i.e., three to five years), is the first step in the strategic people planning process.

That people plan should include a succession plan based on the current employee group so that training and/or hiring needs can be identified. If organizational growth is anticipated, the people’s preparedness for new roles is critical. This people planning and preparedness will have an exciting impact on the internal teams.

It is difficult to recoup your onboarding and training costs if employee turnover is high. So, all you get for your trouble is a team that isn’t performing and a laundry list of costs:

  • Financial costs.
  • Reputation cost.
  • Culture cost.

This adds to poor customer service and has a negative impact on your sales.

But it doesn’t have to be that way.

That’s our passion behind writing this book. Those organizations that do a great job of Stopping the Revolving Door are ahead of the curve and ahead of the Return on Investment (ROI) within their respective industries.


The Authors

Mike Mack is a sought-after Leadership Coach, Consultant, Trainer, and Facilitator. He has been helping business teams maximize their potential since 2006 with the use of tailored consulting and training programs, along with coaching advice. For Mike, it’s about trusted collaboration with his customers. Mike holds an MBA from Athabasca University.

He is a two-time Amazon bestselling author: REMARKABLE SERVICE — How to Keep Your Doors Open; RELATIONSHIPS FOR KEEPS — How to Build Powerful Relationships in Business and in Life. Mike is working on his third book, LUNCH WITH LEADERS — Real Stories of Pivotal Moments for Today’s Executive, scheduled to be published early in 2024.


Kris Schinke is a focused and goal-oriented business professional with extensive executive experience in retail, financial services, and not-for-profit. She has a passion for inspiring and coaching others and believes a positive work culture is key for business growth and sustainability. She is adept in training, leadership development, and promoting teamwork.

Kris loves to promote successful business mentoring and professional coaching to help companies with organizational management. Kris believes coaching offers the insights and guidance to help others achieve their potential, with confidence and purpose. She believes everyone has potential if they are willing to take action. She holds an MBA from Athabasca University and published her first book, According to Wolfgang, My Businessa business reference book based on her entrepreneurial father’s successful equestrian business.

X5 Management offers an extensive list of communication, team development, leadership, sales, and service-related programs that can support any businesses training and coaching needs in any industry.

If your business wants to take advantage of the Canada-Alberta Job Grant so that you can expand on your sales and service-related training for your employees, let’s discuss your organization’s training needs in a complimentary Discovery Meeting.

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