Employee turnover has been a problem for organizations. But recently, the numbers have been increasing. More employees are leaving their jobs and companies are spending more to hire new talent.
Whenever an employee leaves their job, the employer spends 33% of that employee’s yearly salary for their exit. This budget is spent on advertising job posts, recruitment agencies, screening, hiring, and training.
This is why companies are looking for ways to retain their top talent and minimize risks in their company.
Why do employees leave their job?
Employees often leave their job when they feel like it doesn’t align with their future career goals anymore. Another common reason is they feel burned out in their current role, so they look for better opportunities elsewhere. If a company can’t offer the benefits and the work-life balance that the employee is looking for, they’ll search for it in another company.
How to reduce employee turnover rates?
1. Hire the right talent.
Hiring managers need to be honest and upfront during the interview stage about company culture. Candidates can decide if this aligns with their values and career goals. Assessing your candidate’s previous experience in similar roles can help you determine how long they may stay at your company.
Part of hiring the right talent is ensuring that the hiring managers are looking for the right person from the beginning, regardless of whether or not each candidate they interview “looks like a good fit” with the people already employed at the company. All too often, candidates look at the job description and believe that it’ll reflect their actual job responsibilities, only to be surprised with tasks not related to the role they are applying for. Creating clear expectations and hiring them for their specific talents can help eliminate any worries they may have about possibly taking on a job role that is beyond their area of expertise.
2. Offer competitive salaries and benefits
Most people take a job because of the pay and the benefits. It is also the top reason employees change jobs. Employees will more likely stay if their pay is high and they get good benefits.
Organizations need to start with an appropriate starting salary that will attract qualified candidates. Offer regular raises and monitor what other companies pay for similar job roles. Expect to pay more for candidates with in-demand skills, and offer bonuses when they finish a challenging project.
3. Communicate frequently
Managers should communicate frequently with their team. This is an easy way for managers to learn about work problems or concerns they may have. It’s also a great way to offer feedback that can help them do their role better.
Have frequent and regular meetings to review your employees’ work performance and salary expectations. Regular performance reviews can motivate your employees to keep up the good work. If your company is expanding, the responsibilities of your most trusted and talented employees may grow with it. Compensate them fairly for their time and effort, especially if their job description changes.
4. Allow opportunities for development and continuing education
Employees value companies who invest in them. Strengthen their existing skills or enroll them in classes where they can learn new skills that can help them with their current and future job role.
With automation and AI being predicted to replace some of the jobs today, it’s important to set your employees up for success. Train your employees to have practical knowledge of systems and how they can use it to innovate.
Retraining and upskilling are the best options for closing skills gaps. Upskilling gives the company the skills it needs to meet evolving business needs. It also helps them stay engaged and motivated.
Typical classroom-style training isn’t the best use of your employees’ time. Consider enrolling them in eLearning classes. They’ll have the flexibility to learn whenever they want and wherever they want.
5. Analyze current turnover issues
Understand the reason why they’re leaving their current job role and learn from it. It will reveal some internal company issues you may have missed. Address these issues and concerns to help keep talented employees.
6. Encourage a healthy work-life balance
According to Jobvite, more than half of workers say employers encourage them to work on the weekends or after hours, and 30% have found themselves working on a project past midnight.
To increase employee retention, employers are offering their employees flexible working hours and working remotely. According to the Work Institute, the number of workers who said they left a job because of the commute has increased by 400% over the last decade.
To ensure that work-life balance becomes a priority in the company’s culture, make it clear that everyone can take advantage of policies meant to keep employees happy, and that they should feel comfortable doing so. Leaders should stress that work-life balance is a company-wide priority.
These are some ways to help reduce employee turnover and keep the best and most talented employees in your organization. P2L offers training courses for employee engagement. Interested? Email us at games@p2linc.com or visit our website.