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Finding good employees has always been a challenge - but these days it's harder than ever. And it is unlikely to improve anytime soon.

The so-called quit rate - the share of workers who voluntarily leave their jobs - hit a new record of 3% in September 2021, according to the latest data available from the Bureau of Labor and Statistics. The rate was highest in the leisure and hospitality sector, where 6.4% of workers quit their jobs in September. In all, 20.2 million workers left their employers from May through September.

Companies are feeling the effects. In August 2021, a survey found that 73% of 380 employers in North America were having difficulty attracting employees - three times the share that said so the previous year. And 70% expect this difficulty to persist into 2022.

Observers have blamed a wide variety of factors for all the turnover, from fear of contracting COVID-19 by mixing with co-workers on the job to paltry wages and benefits being offered.

As a professor of human resource management, I examine how employment and the work environment have changed over time and the impact this has on organizations and communities. While the current resignation behavior may seem like a new trend, data shows employee turnover has been rising steadily for the past decade and may simply be the new normal employers are going to have to get used to.

The economy's seismic shifts

The U.S. - alongside other advanced economies - has been moving away from a focus on productive sectors like manufacturing to a service-based economy for decades.

In recent years, the service sector accounted for about 86% of all employment in the U.S. and 79% of all economic growth.

That change has been seismic for employers. A majority of the jobs in service-based industries require only generalizable occupational skills such as competencies in computing and communications that are often easily transportable across companies. This is true across a wide range of professions, from accountants and engineers to truck drivers and customer services representatives. As a result, in service-based economies, it is relatively easy for employees to move between companies and maintain their productivity.

And thanks to information technology and social media, it has never been easier for employees to find out about new job opportunities anywhere in the world. The growing prevalence of remote working also means that in some cases employees will no longer need to physically relocate to start a new job.

Thus, the barriers and transition costs employees incur when switching employers have been reduced.

Greater options and lower costs to move mean that employees can be more selective and focus on picking jobs that best fit their personal needs and desires. What people want from work is inherently shaped by their cultural values and life situation. The U.S. labor market is expected to become far more diverse going forward in terms of gender, ethnicity and age. Thus, employers that cannot provide greater flexibility and variety in their working environment will struggle to attract and retain workers.

Employers now have a greater obligation than in the past to convince existing and would-be employees why they should stay or join their organizations. And there is no evidence to suggest this trend will change going forward.

What companies can do to adapt

It has been estimated that the cost to the employer of replacing a departing employee is on average 122% of that employee's annual salary in terms of finding and training a replacement.

Thus, there is a large incentive for businesses to adapt to the new labor market conditions and develop innovative approaches to keeping workers happy and in their jobs.

A May 2021 survey found that 54% of employees surveyed from around the world would consider leaving their job if they were not afforded some form of flexibility in where and when they work.

Given the heightened priority employees place on finding a job that fits their preferences, companies need to adopt a more holistic approach to the types of rewards they provide. It's also important that they tailor the types of financial, social and developmental incentives and opportunities they provide to individual employees' preferences. It's not just about paying workers more. There are even examples of companies providing employees the choice of simply being paid in a cryptocurrency like bitcoin as an inducement.

While customizing the package of rewards each employees receives may potentially increase an organization's administrative costs, this investment can help retain a highly engaged workforce.

Managing the new normal

Companies should also plan on high employee mobility to be endemic and reframe how they approach managing their workers.

One way to do this is by investing deeply in external relationships that help ensure consistent access to high-quality talent. This can include enhancing the relationships they have with educational institutions and former employees.

For example, many organizations have adopted alumni programs that specifically recruit former employees to rejoin.

These former employees are often less expensive to recruit, bring access to needed human capital and possess both an understanding of an organization's processes and an appreciation of the organization's culture.

The quit rate is likely to stay elevated for some time to come. The sooner employers accept that and adapt, the better they'll be at managing the new normal.

[You're smart and curious about the world. So are The Conversation's authors and editors. You can read us daily by subscribing to our newsletter.]

Ian O. Williamson, Dean of the Paul Merage School of Business, University of California, Irvine

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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It is common practice for employers to secure credit reports on current and prospective employees.

While this information can be easily obtained by subscribing to a commercial credit reporting service or by hiring a company specializing in conducting employment investigations, this practice has serious legal pitfalls.

Under the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. (West, 2005), an employer is authorized to conduct a credit investigation to evaluate a job applicant for employment or a current employee for promotion, reassignment or retention.

In these instances, the employer is required to secure the individual's informed consent to the investigation in writing and to refrain from making an adverse employment decision based, in whole or in part, on a credit report absent full compliance with the safeguards set forth in this enactment.

The FCRA generally requires an employer to provide a copy of the report and a written description of the individual's rights under the Act before taking any adverse action against a current employee or job applicant based on information contained in the individual's credit report.

Within three days of taking adverse action, the FCRA additionally requires the employer to provide:

•Notice of the action taken;

•The name, address, and phone number of the credit bureau from which the report was obtained;

•A statement that the credit bureau did not make the decision to take the adverse action and cannot provide specific reasons why it was taken;

•Notice of the individual's right to obtain a free copy of his/her credit report within 60 days; and

•Notice of the individual's right to dispute the accuracy of the information in his/her credit report with a credit bureau.

While these provisions on their face may appear to provide meaningful protection, it is actually quite difficult to find out whether an employer has followed the letter of the law.

The employer always can claim that it based the turn down or adverse employment action on a reason that was separate and unrelated to any adverse information contained in the credit report. Even with its limitations, the FCRA has the potential of providing relief.

For example, it subjects an employer to civil liability for "knowing noncompliance" with these and other requirements. Remedies include "actual damages" (e.g., lost employment or promotional opportunities and job search costs incurred by the prospective or current employee), litigation costs and attorney's fees. In addition, willful failures to comply with the FCRA may subject an employer to an award of punitive damages and/or criminal liability.

There are several very simple steps that an employer can take to avoid litigation and potential liability.

First, the employer should advise the prospective or current employee that a credit investigation will be conducted and secure his or her express consent to the inquiry.

Second, the employer should inform the prospective or current employee of what type of a credit report will be obtained and how its results will be used.

Third, the employer should provide the affected individual with a copy of any report containing adverse information and invite his or her comments on the accuracy and completeness of this information before making a final decision on employment.

This information should be set forth in clear and concise language on a standard consent or verification form, and the prospective or current employee should be required to sign the form before any credit report is requested. In addition, the employer should refrain from saying or doing anything that might be construed as making an unauthorized use of credit information during an employment interview and/or reference check of any individual.

While these recommendations go beyond the current letter of the law, they make a great deal of sense from a public relations and human resources perspective. Since the law is still developing in this area, providing additional safeguards makes sense from the perspective of employers and employees alike.

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"When dealing with people, remember, you are not dealing with creatures of logic, but with creatures of emotion"
~ Dale Carnegie

"A simple rule in dealing with those who are hard to get along with is to remember that this person is striving to assert his superiority; and you must deal with him from that point of view"
~Alfred Adler

"Business, more than any other occupation, is a continual dealing with the future behaviour of people; it is a continual calculation, an instictive exercise in foresight."
~Henry R. Luce

"If you want to learn how to deal with difficult people, have a few kids"
~ Overheard in a Chicago bar

All managers will have to deal with difficult employees during their careers. It is a chore all managers endure, all managers despise, and few, if any, ever learn to do effectively.

First, there will always be difficult employees. In fact, I have observed that what we often deem to be "difficult" or "odd" behaviour in a person is really present in order to help this person maintain their psychological balance. "Difficult" people in this context are the people we don't know how to deal with us or those who are difficult for us to deal with due to (perceived or otherwise) them being stubborn, arrogant, oversensitive, or any trait that needs a special type of treatment Second, it's your job as the manager to deal with them. If you don't deal the problem, it will only get worse and impact the lives of those around you (and the subject employee) who would be looking to you for leadership.

Why Are Difficult Employees Like That?

Difficult employees are that way simply because it is a behavior that has worked for them in the past. They may not know any other behavior, or, they may choose this behavior when they think it will be most effective. You will be successful in dealing with difficult employees only to the extent that you can make these undesirable behaviors no longer effective for them.

In many ways, it's like dealing with children. If every times a child screams, its parents give it candy, what will the child do the next time it wants candy?

The same is true for the employee who "blows up" whenever anyone disagrees with him. When he does that, people stop disagreeing with him and he thinks he has won.

How Can A Manager Deal With Difficult Employees

1. Evaluate:

It is important when dealing with difficult employees to act quickly. Often you will need to act almost immediately to neutralize a dangerous situation. However, it is always appropriate to think before you act.

Clearly if an employee comes to work with a gun, you will need to act more quickly than when someone complains that another employee is always taking credit for her work. In either case, take the appropriate amount of time to evaluate the situation before you act. You don't want to make it worse.

Recognize that most employees can be "difficult" from time to time. This can be caused by stress on the job or away from it. Some employees are difficult more often than others. It is not always your least-productive employees who are difficult. So take a moment to evaluate each situation for the unique situation it is.

2. Do your homework:

Always act on facts. Don't base your actions on gossip or rumor, or even your own preconceptions and/or opinions. You can't allow yourself to be anything but impartial. The person(s) spreading the gossip is a difficult employee in their own way and must be dealt with when the immediate need has passed.

If you have not seen the inappropriate behavior yourself, look into it. Ask the people reportedly involved. Collect all the facts you can before you act. Don't use the fact that you haven't seen the inappropriate behavior as an excuse to delay doing something. It is important to act promptly.

Make sure you aren't part of the problem. It will be much more difficult to remain calm and impartial in confronting the difficult behavior if you are partly responsible. If that's the case, be sure you acknowledge your role in it, at least to yourself.

3. Develop a plan:

You're a manager. You know the value of planning. This situation is no different.

You need to plan the timing of the confrontation. You need to select a quiet, private place where you won't be interrupted. You need to decide whether you need to have others, like an HR representative, present in the meeting. Plan the confrontation and then make it happen.

When you have prepared, it is time to act. You do not need to act impulsively, but you must act quickly. The longer an inappropriate behavior is allowed to continue, the harder it will be to change it or stop it.

4. Confront the problem:

Don't put it off. It may not be pleasant, but it's an important part of your job. It will not "fix itself". It can only get worse. You have planned this confrontation. Now you need to execute.

5. Deal with the behavior, not the person:

Your goal is to develop a solution, not to "win". Focus on the inappropriate behavior; don't attack the person. Use "I" statements like "I need everybody on the team here on time so we can meet our goals" rather than "you" statements like "you are always late".

Don't assume the inappropriate behavior is caused by negative intent. It may be from fear, confusion, lack of motivation, personal problems, etc.

This is the important part; the part most managers never get right: Give the other person a chance to develop a solution to the problem. They are more likely to "own" the solution if they are at least partially responsible for developing it.

6. Try to draw out the reasons behind the behavior:

As you talk with the difficult employee, actively listen to what they say. Stay calm and stay positive, but remain impartial and non-judgmental. Ask leading questions that can't be answered in one or two words.

Don't interrupt. When you do respond to the difficult employee, remain calm.

Summarize back to them what they just said, "so what I understand you are saying is.....", so they know you are actually listening to them.

If you can find out from the difficult employee what the real source of the inappropriate behavior is, you have a much better chance of finding a solution.

Sometimes these confrontations will go smoothly, or at least rapidly, to a conclusion.

Other times it will require several sessions to resolve the problem.

7. Repeat as necessary

Minor problems, like being late for work, you may be able to resolve with a simple chat in your office with the employee. An office bully, who has used that behavior successfully since elementary school, may need more than one confrontation before a solution can be reached. Be patient. Don't always expect instant results. Aim for continuous improvement rather than trying to achieve instant success.

8. Know when you are in over your head:

Sometimes the underlying issue with a difficult employee will be beyond your capabilities. The employee may have psychological problems that require professional help, for example. Learn when to keep trying and when to refer the employee to others for more specialized help. Your company may have an EAP (employee assistance plan) or you may need to use resources from the community.

9. Know when you are at the end:

While the goals is always to reach a mutually acceptable solution that resolves the difficult employees inappropriate behavior and keeps your team at full strength, sometimes that is not possible. When you reach an impasse and the employee is not willing to change his or her behavior then you need to begin terminations procedures in accordance with your company's policies.

Coming to a Solution

The desired result from confronting a difficult employee's inappropriate behavior is an agreed upon solution, and the inappropriate behavior will continue unless you and the employee agree upon said solution. You will get more buy in and greater results if the employee plays a role in crafting the strategy on how to get there.

Your employees will always needs to know what is inappropriate about their behavior just as much as they also need to know what is appropriate behavior. The need for a manager to communicate clearly is always high, but it is especially important in these situations. Make very sure the employee understands the requirements, what is expected of him, and, if necessary, the consequences.

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You decided to become a newly minted franchisor.

And when that day finally arrived how exciting was that?

You were going to conquer the world with your franchise brand.

Here's what you did right.

Started with a tested business model with a verifiable proof of concept.

Hired a competent and experienced franchise attorney to develop your franchise agreement and franchise disclosure document - FDD.

Your franchise attorney strongly suggested (or insisted) since you have a strong proof of concept for your franchise model that you include an Item 19 Financial Performance Representation - FPR and you did it.

Developed an operations manual, training system and support system that is scalable as you grow your franchise system.

You had a reasonable budget to market for franchise recruitment.

But, after a while, you will hate being a franchisor. Here are your 7 biggest beefs.

1. Early franchisees you selected seemed very passionate about being franchise owner/operators but they are not living up to what they promised and you're more than disappointed.
2. Multi-unit franchisees are not current with their development objectives and they expect you to not hold them to what everyone agreed to. They want some or all of the following extensions, refunds or credits against franchise fees and in return you get nothing. Not even what you originally bargained for.
3. You have a great training program and franchisees are shortcutting what your program offers and requires.
4. Franchisee local market success depends on local store marketing, your franchisees don't make the investment in it. And they complain to you that sales are too low and your brand is not well known enough in their area.
5. Franchise owners expect you to fix their unit level problems with employees, landlords, suppliers, insurance, local municipality, their business & operating partners. You had no idea that you'd be expected to do so much hand holding and babysitting when you set out selling & opening franchises.
6. Franchise recruitment for a new franchisor is tough. However you couldn't have imagined how difficult generating and managing leads would be. And the cost per new franchise recruited is far more than you anticipated.
7. You discovered that your management team had a much greater learning curve for transitioning your business to a franchise development and operations company. And now you're faced with some tough staffing decisions as you move forward.

This is not an exhaustive list of awful franchise things and readers can feel free to add to the list.

Good news is that you had a good underlying business at the outset. And all these franchising challenges can be remedied.

If this sounds llike your franchising story & you want some help solving your problems call me at 443.502.2636 [email protected]. Lease the talents of 20+ year proven franchise executive, who has seen and solved these problems before.