Attracting talent is a key concern for many companies, but it’s also important to invest time and resources in retaining your existing employees. After all, recruiting, training, and developing employees is a time-consuming and costly process, so the lower your turnover, the better.
What is employee turnover?
Employee turnover refers to how frequently employees leave a company. The measure looks at both voluntary turnover, when an employee chooses to leave an organization, and involuntary turnover when an employee’s contract is terminated by the business.
What is a good turnover rate?
A healthy, or ‘good’, turnover rate varies significantly from industry to industry. Overall, in the USA, the annual turnover rate sits somewhere between 10-20%, costing the economy around $1 trillion every year.
How to reduce employee turnover
Here are our top tips for reducing employee turnover in your organization.
Recruit the right people
Reducing turnover starts with the recruitment process - if you hire the wrong people for the job, they are more likely to leave.
Make sure you’re clear about what the role involves, the expectations of employees, and the company culture. Don’t tell candidates what you think they want to hear in an attempt to get them on board, this will only cause problems further down the line.
The onboarding process is also key for retention. As the employee’s first experience of the organization’s culture, it’s important that the process is positive, engaging, and effective. Employees who have a positive onboarding experience are more likely to stay in the company for longer. So, look for any improvements you can make to improve enchance your onboarding process.
Reward and recognition
Rewarding your employees and recognizing their hard work is a simple way to reduce turnover. So ensure employees feel appreciated and valued, whether that’s through thank you notes and positive feedback, or financial rewards and new opportunities.
More than ever before, employees value a work-life balance. Spending too much time and energy at work can lead to stress and burnout, which in turn will increase turnover. So ensure that your employees feel like they can achieve a good work-life balance. Introducing initiatives such as remote or flexible working can be beneficial, but you also need to create a culture where employees don’t feel that they have to work additional hours and are supported in taking time off.
If employees don’t feel there is room for development and progression in the business, they will look for opportunities elsewhere. So, ensure that there is training available for employees to develop new skills and strengthen existing ones, and ensure there are clear routes for progression within the organization.
Collect and analyze data
If you want to reduce turnover, it’s important to understand who is leaving your company and why. Collect data on turnover and use it to work out if there are any trends, such as particular teams, areas of the business, or times of the year with higher turnover rates. You can then look to make improvements to help address these issues.
As a global talent partner, we are constantly on the pulse of evolving workplace patterns and their impact on talent management. If you’re a professional looking to make a career-defining next step or a client searching for your next business-critical hire, contact us today.