How I Avoid Employee Churn

Summary

• Coinbase is a $1 billion company with about 4,500 employees.
• Most employees at Coinbase do not stay longer than 15 months.
• According to reviews on Glassdoor, employees at Coinbase say there's no work-life balance, it's a very intense workplace, and there's constant uncertainty about job security.
• The high demand to work at Coinbase allows them to attract and pay for good talent despite high turnover.
• I don't like this approach; I prefer companies that value their employees more.
• Neutrogena is a $4 billion company with only 750 employees.
• The average tenure at Neutrogena is 10.2 years, which is impressive.
• Employees at Neutrogena feel appreciated, have work-life flexibility, and feel like they matter.
• People value working at Neutrogena for the praise, good benefits, and fair pay they receive.
• If it's possible to build billion-dollar companies with either approach, why use punishment when you can value and appreciate your employees instead?

Video

https://www.youtube.com/watch?v=rTorm3XqNcc

How To Take Action

I would suggest implementing strategies that focus on appreciating and valuing your employees, as this will make your business more successful and keep your team happy for the long term.

• Create a Positive Work Environment: Encourage work-life balance by offering flexible hours and remote work options. Happy employees are productive employees.

• Show Appreciation Regularly: Simple gestures like thank-you notes, shout-outs during team meetings, and small rewards can make employees feel valued and appreciated.

• Provide Clear Job Security: Communicate openly about company goals and expectations. When employees know they have job security, they are more likely to stay longer and be more committed.

• Offer Fair Compensation and Benefits: It doesn’t have to break the bank. Regularly review salaries and benefits to stay competitive, even if it’s just small annual raises or additional perks like wellness programs, which can be low-cost but high-value.

• Encourage Growth and Development: Provide opportunities for career growth through training and mentorship programs. This shows employees you invest in their future with the company.

• Gather and Act on Feedback: Use employee surveys or regular check-ins to understand their needs and concerns. Act on this feedback to continuously improve the work environment.

By focusing on these low-cost, high-value strategies, you can build a productive and loyal team, much like Neutrogena, which values its employees and enjoys long-term success.