Employees leaving business is never a good sight and sometimes it can become a big problem. While it is normal to have basic employee turnover, it is also important to retain talented individuals in a business to create a consistent workforce who can keep the operations and productivity streamlined. As a result, you are not required to always hire and train new employees as the experienced ones can take care of it. Let’s take a better look.
What is Employee Turnover? How to Measure?
Employee turnover is the situation when your employees leave your business or the company. There are mainly two types of employee turnovers.
- Voluntary Turnovers - These turnovers take place when the employee decides to leave the company for various like resignation, retirement, and transfer.
- Involuntary Turnovers - In this case, the company decides to let go of the employee for reasons like firing and laying off.
While employee turnover is important for every industry, the rate of turnover can be high or low based on the industry. If it is higher than the average; perhaps it is time to improve employee turnover. It can be calculated by measuring the percentage of employee departures among an average number of employees. High turnover rates that are more than 18% can raise concerns as it is bad for your business. The cost of replacing an experienced employee can cost 50% to 200% of their salary.
How to Improve Employee Turnover?
Employee turnover can take place for various reasons such as relocation, poor management, lack of communication and team effort, and many others. Fortunately, some strategies can help to improve it.
- Prioritize Strategy for Recruitment - A great company culture can be established when there is an effective recruitment strategy. Make sure to create accurate job descriptions and focus on the recruitment process to make it efficient and streamlined. To lower employee turnover, you must hire qualified individuals for the particular job role rather than someone who can leave after training.
- Investment for New Staff Onboarding - The freshers and newly hired staff need adequate training to be ready for the job role and therefore, a certain amount of investment must be made prior to the hiring process.
- Response to Employee Feedback - Responding to employee feedback makes them feel valued and their opinions appreciated. It helps to foster a company culture of open communication that helps to retain more talent and veteran employees. It also helps to gain more insight into the needs and concerns of employees.
- Regularly View Pay and Benefits - Although it is a matter of company budget, you should always check and review pay slabs and benefits of the employees to modify them based on the valuation in the market. Competitive rewards and incentives can help to keep the workforce dedicated and loyal to the company which offers greater benefits.
- Engage with Your Professional Team - Without understanding the perspective of the employees, you would not be able to understand the message that your team of professionals is trying to portray. Recognize your team better and engage with them to fulfill their needs at regular intervals.
Final Thoughts
Most employees prefer stability and the pressure of constantly switching. If your company can provide stability to the employees, they are less likely to leave your company. Therefore it can greatly improve the rate of employee turnover and retention. Try to foster a comfortable and exciting work environment which helps to instill more loyalty among employees with added perks and benefits.
