Business Education

Tired of New Employees Abruptly Quitting? Here’s a Novel Solution for Recouping Your Training Costs

One of the most costly and infuriating aspects of running a business is training new employees only to have them up and abruptly quit. It takes a lot of time, effort, and extra expense to onboard new hires and get them familiar with practices and procedures. When they depart shortly after their training, it means having to fill that position all over again. Since this is such a huge hassle and a costly one at that, some companies are actually billing employees who quit. The strategy is to ensure new employees don’t receive critical industry training only to leave and use their new skills at a competitor paying higher wages and/or offering more enticing benefits packages.

Companies Recovering Employee Training Costs through TRAPs

Healthcare, retail, trucking, beauty, and more companies are adopting a new approach in order to reduce their workforce losses. Known as Training Repayment Agreement Provisions or TRAPs, these clauses are included in employee contracts. Nearly 10% of all American companies are now using these provisions, according to a recent report by Reuters News.

When a valued employee quits, the loss can have a detrimental effect on the person’s team and department and maybe even on the entire company. Not only can an unexpected departure lead to lost revenue, but it also could lower the morale and productivity of remaining employees. —Society for Human Resource Management

Other industries may follow this emerging trend if it proves successful and legal. There are already federal and state government agencies looking into the practice, and it appears to be legitimate. If it continues to grow in popularity, it should be not only a big benefit to businesses but to employees as well, as both parties will know precisely what’s expected of them and how to proceed accordingly.

How to Use Employee Training Repayment Agreement Provisions

Because this is somewhat new, it’s very important to take thoughtful, measured steps in order to implement such a practice. Here are some suggestions for how to use an employee training repayment agreement provision in your business:

Consult a labor law attorney. The very first thing you should do is to speak with a lawyer who specializes in labor law in your state. Even if a future employee willingly signs such an agreement, there may be something on the books that does not allow you to enforce such a provision. So, be crystal clear it is legal and actionable in your state.
Speak with your human resources department. Obviously if you are able to include an employee training repayment agreement provision in your hiring contracts, you’ll need to get the right people in your organization on board and in the know. You can help to develop a new section in your training process that discloses and advises potential hires and new team member about this provision.
Make sure new hires are made fully aware of the provision. When you’re recruiting someone new to your organization, be sure this is made abundantly clear before you proceed with follow-up interviews and probably before the very first, initial interview. Any job candidate should be made aware of this provision well before you get deep into the hiring process.
Include a mechanism to recoup new employee training costs. Of course, you’ll need a way to actually recoup those training costs. So, if you offer a sign-on bonus, that may be one way to recapture the expense. Here again, you’ll need to consult an experienced, licensed labor law attorney in your state to establish a recuperation mechanism for the provision.

What else would you suggest business owners do to deal with new hires who quit shortly after being brought on? Please share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Why High-Performing Landscape Companies Grow with Waters

July 9, 2026 No Comments

A strategic framework for consistent turnarounds, stronger profitability, and lasting business value In commercial landscaping, ambition is rarely the thing missing. Most of the companies we meet have deep customer relationships, capable crews, and a real commitment to quality. They got to where they are through persistence and hard-earned expertise. But as these businesses grow, that same growth starts exposing cracks in how the business actually operates. Scale creates complexity. The processes that worked fine at $5 million in revenue start to buckle at $15 million. A leadership structure built for one branch gets stretched thin across three or four. Informal communication that used to be fine now causes real friction. Labor costs start outpacing revenue. Margins get harder to predict. And at some point, the owner realizes every new contract is adding more weight on their shoulders instead of more freedom. Chasing more volume at that stage doesn’t fix anything. What the business actually needs is better design. Waters Business Consulting Group partners with commercial landscape leaders to find what’s actually limiting their performance, then build the systems, leadership, and financial visibility it takes to turn a reactive company into one that can scale on purpose. We’re not just trying to make the company bigger. We’re trying to build something more resilient, more profitable, and valuable enough that it doesn’t fall apart the moment the owner steps away. That’s the kind of institutional strength that brings landscape companies to Waters in the first place. The WBCG framework: building stability from the inside out Real improvement never comes from one initiative bolted onto an otherwise unchanged business. An aggressive sales push can’t fix operations that are already broken. A beautiful financial report means nothing if no manager is actually held to it. Hiring more people just adds more complexity if nobody’s roles are clearly defined. Lasting change has to touch every part of the business at once. Our framework works across six areas that all reinforce each other: diagnosing the business honestly, building financial visibility, tightening operational discipline, creating real leadership accountability, aligning growth with profitability, and building lasting enterprise value. Strengthen these together, and you get a business that performs the same way twice, reliably, instead of getting lucky once. 1. Diagnose before you prescribe anything Every struggling business shows the same symptoms: margins eroding, turnover climbing, cash getting tight, an owner who can’t get out of daily emergencies long enough to lead. Treating any one of those symptoms on its own almost never fixes the underlying problem. A profit problem is often really a pricing problem, or a production-control problem, or the wrong mix of customers. What looks like a hiring crisis is often just unclear management roles wearing a different costume. We start by taking a genuinely close look at the economics and the org structure to find where performance is actually leaking out, across financial performance, gross margins by service and customer, how accurate the estimating really is, labor efficiency, leadership capacity, the sales pipeline, and how dependent the business is on the owner. The point isn’t to produce a thick report. It’s clarity, so leadership can stop reacting to whatever’s on fire today and start fixing what’s actually broken underneath. 2. Build financial visibility you can actually act on A financial report tells you where the business has been. It doesn’t tell you where it’s headed, and by the time it lands on your desk, the month it describes is already over. The companies that perform best treat their financials as a steering wheel, not a rearview mirror. They connect what happened at month-end back to the decisions made on a job site that week, which means they catch a bad trend while it’s still small instead of after it’s compounded for two quarters. We help teams build visibility into the numbers that actually move performance: gross margin by service line, crew productivity, equipment utilization, overhead trends, pipeline quality, and cash flow. Once an owner understands the true economics of the business, they stop managing crisis to crisis and start leading. 3. Build systems, not heroics Landscaping is genuinely complicated to run well. Labor, equipment, schedules, and materials all have to line up, usually while the weather refuses to cooperate and customers expect more every year. The companies that consistently perform don’t lean on a handful of superstar employees to hold the whole operation together. They build systems: disciplined pricing and estimating, real production planning, tight equipment and purchasing controls, consistent quality checks, and reporting that actually gets used. Strong systems cut down on the variation between one crew’s work and another’s, and they let a company grow its revenue without a matching spike in stress. 4. Invest in leadership and real accountability A business can’t outgrow the capacity of its leaders. A lot of owners hit a ceiling simply because they’re still the one making every operational, financial, and personnel decision, no matter how big the company gets. We help build real leadership depth by clarifying roles and actually handing off authority, not just responsibility. Every manager should know exactly which results are theirs, how success gets measured, when to escalate a problem, and how much authority they actually have to make a call. When managers are genuinely empowered and genuinely accountable, the owner finally gets time back for strategy instead of spending every day putting out fires that shouldn’t have reached their desk in the first place. 5. Chase profit, not just activity Growth only matters if it produces profit. Too many landscape companies chase revenue that ends up costing more in cash and leadership time than it’s worth. We help teams evaluate opportunities on strategic fit and long-term value, not just top-line size, which usually means putting resources behind the highest-margin customer segments, contracts that fit inside actual operational capacity, and markets that support healthy cash flow rather than draining it. Real business health takes the discipline to turn down the wrong work so there’s room to do the right work

How to Deal with an Employee with Limited Work Capacity

January 6, 2021 No Comments

Having a good employee who is restricted in their capabilities can be a very challenging situation. This is especially true if he or she is a valued team member, but can’t put in the hours due to certain limitations. Whether it’s a preexisting condition, and injury suffered on or off the job, you obviously have moral, ethical, and legal responsibilities to him or her. However, this doesn’t mean that they are completely protected from being terminated or having their role and/or responsibilities changed. Although this article isn’t specifically about legal ramifications, it will give you some effective tools on how to deal with this particular set of circumstances. Read on to learn more about how to deal with an employee who has limited capacity. Every Situation is Different Limited capacity can mean the number of things, including an inability to perform certain physical tasks, and other situations. But, most often it is due to a physical limitation which prevents him or her from fulfilling one or more of their responsibilities. These can range widely, from an inability to lift certain amounts, to not being able to sit for a protracted period of time. An ever persistent problem facing employers is what to do with the employee who is chronically sick or has a serious health problem. Besides the obvious issues it presents to the employer- additional strain on other employees to pick up the slack; inability to properly staff and manage work loads; basic coverage concerns- there are also potential state and federal legal ramifications if the absences are not handled and documented correctly. —HNI Risk Services Whatever the case may be, It is up to you to be as accommodating as possible, without fully compromising your company’s position. In other words, it’s best to strike a balance and find a happy medium where you can accommodate their needs while also allowing them to fulfill most or all of their work responsibilities. 3 Key Ways to Deal with an Employee with a Limited Work Capacity There’s no hard-and-fast set of rules for coping with an employee who can only work in a limited capacity. After all, no two sets of circumstances are exactly the same. But, there are some general parameters you should observe. Here are three good ways to deal with a team member who is limited in their work capacity: Gain a real understanding of the circumstances. Whether it’s a back problem, issues with a disease, or anything else, you need to have a very clear idea of what’s going on with your employee. Understand precisely what his or her limitations are and aren’t. This way, you’ll have enough information to make good decisions when it comes to his or her role and responsibilities. Make strategic concessions where necessary. Even your best employee can suffer from very unfortunate sets of circumstances and still be able to contribute to your company in a number of ways. Though it’s difficult to comprehend or even accept, it could be a detriment to your business (that is, if you insist on keeping everything the same). So, think outside the box and make strategic changes so he or she can continue to be a productive asset for your company. Realistically reassess the situation periodically. Sometimes, this can be a long-lasting situation that can go on for years. Or, it could only last for several months. Regardless, you need to take the time to reassess the situation every now and again. What other suggestions do you have? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective; it’s greatly appreciated! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Successful Entrepreneurs Stay Calm Under Pressure

May 16, 2017 No Comments

There’s one thing that’s certain about starting and running a business, there will be challenges. Some are mere annoyances, while others are minor and easily dealt with, then, there are times when it seems the earth moves. It can happen in the blink of an eye, a simple error demonstrating much to your chagrin the butterfly effect. One tiny mistake or misstep makes a larger-than-life impact, and, your team looks to you to deal with the situation. We are told our whole lives that when faced with a challenge to remain calm. While it’s easy to do so as an exercise, things get a lot more complicated in real time. It starts with a stark realization, your heart drops into yours stomach, and, you begin to look desperately for answers. For most of us, that’s a normal reaction, however, for successful entrepreneurs, there’s a different approach. How Successful Entrepreneurs Stay Calm You’re not alone if you believe that stressful situations wreak havoc on lives and cause physical damage, particularly because it’s backed by science. Dr. Travis Bradberry helped to conduct a research study on more than one million people. As the nearby quote states, the analysis revealed that a whopping 90 percent of those categorized as top performers were able to stay calm, manage their emotions, and remain in control. The ability to manage your emotions and remain calm under pressure has a direct link to your performance. TalentSmart has conducted research with more than a million people, and we’ve found that 90% of top performers are skilled at managing their emotions in times of stress in order to remain calm and in control. —Forbes What this teaches us is that people learn to deal with stress, and other neuroscience research has found this to be true. One of the secrets revealed is that staying calm and under control is not an inborn trait. In fact, we also know this because of our instinctive fight-or-flight response–both can make a bad situation a whole lot worse. So, how is it that successful entrepreneurs stay calm under pressure? Well, they do these things: They take a breath and step back. Okay, we all know to do this, but, how many of us actually practice it? Too often, we let our gut instinct fly, which in most instances, isn’t a path to solve the problem but exacerbate the situation. Taking a deep breath allows you to breathe, in other words, calm your nerves, and your brain. They solicit and seriously entertain ideas. Look to some of the most successful people in business, and, you’ll definitely find a common trait: trust. We’re not talking about self-confidence, but trusting in others, or, put another way, giving serious consideration to the ideas and suggestions of other people. Behind every successful business person, there’s a team of people they trust and rely on for advice. They think carefully but don’t fret the outcome. Rather than focus on the moment and allowing it to become an exercise in fear and doubt, look to the future. While what you face might be heart pounding at the moment, it’s quite helpful to see the good that will come from it. Fear produces poor decisions but hope gives you options and a sense of peace. They stand by their beliefs and principles. When confronted with a problem, rather than give into the pressure, successful people choose to stand by their beliefs and not compromise their principles. While this might cause a setback, it serves a higher purpose and makes a statement. They relabel their emotions. Though not easy, this is very helpful. Instead of giving into fear, reroute the feeling into anticipation. You can turn frustration into desire, and transform dread into wise caution. It takes practice to do these things, but becomes more natural over time. That’s a good thing, because you’ll learn a lot on your journey and different constructive coping mechanisms that produce real results. [shareaholic app=”follow_buttons” id=”26833294″]

Tired of New Employees Abruptly Quitting? Here’s a Novel Solution for Recouping Your Training Costs

Companies Recovering Employee Training Costs through TRAPs

How to Use Employee Training Repayment Agreement Provisions

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Related Posts

Why High-Performing Landscape Companies Grow with Waters

How to Deal with an Employee with Limited Work Capacity

How Successful Entrepreneurs Stay Calm Under Pressure

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