Reduce Employee Turnover: definition and techniques to reduce employee turnover
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| Reduce employee turnover |
Table of content
What do you mean by employee turnover?
Formula to calculate employee turnover.
Causes of employee turnover.
Strategies to reduce employee turnover.
What do you mean by employee turnover?
Employee turnover refers to the total number of employees leave a organization over a certain time period.
Causes of employee turnover
Employee is the main resource of an organization. Organization invest time and money to recruit best employees and to develop them. But after certain times, they leave their job.
Following basic causes
for most of the employees to leave their job;
- getting better
opportunity (salary package, benefits, renowned organizations etc.)
- new job place is
suitable for the employees
- new job conditions are
matched with employees interests.
To reduce staff turnover
for the above reasons some organizations may not the capacity to change all the
things easily. In that cases some employees will leave in a certain period is
normal. But sometimes, people leave their job without making any alternative
income source.
Organization should
survey to find out the hidden cause of staff leaving the job.
Following things can be
re-thinked for retaining best employees of your organizations -
1. Are employees feeling
praised?
2. Are they feeling
respected?
3. Are their opinions
being considered?
4. Are communication
system working effectively?
5. Are their compliance
issues addressed properly?
6. Are their issues of
dissatisfaction addressed property?
Formula to calculate employee turnover
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Strategies to reduce employee turnover
To recruit the best people you need to know what your organization’s
needs. What is its mission? What are its values? What type of individuals fit
in? What mindset are you looking for?
Make sure to clearly communicate the job requirements to
candidates during interviews. Create an evaluation scorecard that can be used
to grade and compare the performance of candidates on a series of criteria.
When it's time to interview, it's a good idea to have more
than one conversation with serious contenders and include other people in the
process such as an HR person and the manager to whom the new employee will
report.
Use behavior-based interviewing techniques. These involve
inviting candidates to describe how they have handled specific challenges in
previous positions. Past performance is one of the best predictors of future
performance. You can also present them with a scenario involving a difficult
situation and ask them how they would handle it.
Flexible
Working Arrangements and Quality Work-Life Balance
Flexible working
opportunities can benefit everyone: employers, employees and their families.
Most employers now recognize that it makes good business sense to provide
flexible working opportunities for their staff.
If you're currently suffering from high
employee turnover, you should check is employee work-life balance.
The benefits include better work-life balance
and reduced expenditure on commuting for employees, and reduced operational
costs for employers.
Ensure Job satisfaction
Keeping employees happy at work can be
tricky. So, introducing workplace perks and benefits is a perfect way to ensure
that workplace morale is always kept high. This could be anything from team
events to paying for your employees' gym memberships or exercise classes.
Additionally, having this time off
really increases productivity among teams, allows employees to do the best work
they can do, and ultimately creates additional success for your company.
Financial Security
Employers should
work with their employees to determine where they need financial support and
which solutions would benefit those most. This process will help employers
understand their employees better and show workers that the organization not
only cares for their well-being but also is invested in working together to
build the most effective path to financial wellness. Supporting employees with
budgeting and saving tools can also help ease their stress and free their minds
to focus more on work-related tasks. Prioritizing financial wellness can help
workers feel more connected to the company and encourage employee loyalty.
Identify and
Reward Great Performers
Studies show that rewarding great talent increases workforce
morale. Bearing in mind that great work is appreciated and celebrated, most
employees will be motivated to put in their best, a culture that ultimately
reflects in the productivity of workforce at large. Awarding promotions as and
when due is a great employee retention strategy. It assures employees that
their efforts are recognized by management and spurs them to greater
productivity.
Encourage your employees
If we are going to talk about employee turnover, we have to speak about the employee’s need and desire to feel valued. No one wants to work at an organization where they feel like their accomplishments are always being downplayed. Employees want to work in an environment where they can be productive and be recognized for that productivity. The right encouragement can go a long way towards reducing employee turnover in the long run.
Offer the appropriate incentives
There are many situations where an organization
might not be able to understand their employee turnover problem, but there are
other cases where it’s a bit more simple. If your organization is not offering
the going rate for compensation and benefits in your industry, you shouldn’t be
asking why your employees are leaving, but leaders and HR professionals should
be asking why they aren’t offering more incentives.
Execute HR Planning to identify actual Manpower
Many businesses don’t understand the
importance of hiring enough people. While an organization is scaling, it should
be actively hiring to fulfill the new necessary roles. Some leaders may cut
costs by avoiding hiring and simply ensuring that their employees work harder
and longer, damaging employee morale and company culture in the process.
To reduce employee turnover, organization
should execute HR planning to identify what actual employed require to fulfill
organization’s goal.
When any employee leave organization, try
to fill the vacant position as early as possible, otherwise another employees may eventually
suffer from burnout after taking on these new duties as well as their own, and
it can even possibly lead them to leave the organization altogether. In this
situation, replacing these employees will only cost more money when you could
have hired new employees in the first place.
Don’t take time to fire employees when necessary
There will be some situations where you hire
an employee only to find out that might add to workplace negativity or simply
lack work ethic compared to their colleagues. Their comments may hurt other
employees, or their lack of motivation might send the wrong message to clients
or customers. If you aren’t seeing any improvement in this person and their
work, it may be time to let them go. While it might seem brutal, it will
likely be a decision that you do not regret.
When we are talking about employee turnover, we have to recognize that some individuals simply do not share the same values as the rest of the employees. When it is clear that it is time to let an employee go, it is best to make the decision quickly and efficiently.
Role of HR Department to reduce employee turnover
HR department have to
play an important role to find out the hidden cause of staff turnover. They
should
- communicate effectively
with managers
- should hear to their
employees
- ensure standard work
environment throughout the organization.
- develop policy and
review time to time is not enough, make sure to practice those effectively.