Employee turnover is the rate at which employees leave a company in a particular period of time.
A high employee turnover is detrimental since it’s time consuming to get new employees to fill the roles. Also, a new employee would take some time to get attuned to the company culture and achieve peak performance- meaning, loss of revenue for the company in that period.
Employee turnover is of two types- voluntary and involuntary. Voluntary turnover happens when an employee decides to resign- for better pay, a higher designation, to start a business or for some other reason. Involuntary turnover is when an employee is let go by the company due to poor performance or another equally valid reason.
Employee turnover is a problem companies contend with regarding different talent types- full time, contingent and freelancers. But you can take the following measures to limit turnover and increase retention.
Hire the right employees
This may sound like a no-brainer. But the fact remains that many organizations usher in the wrong employee for a role, only to see them leaving in a short span of time.
Companies typically get the candidates with the right skills. What’s overlooked is if they would be a good fit for the company’s culture. If there is a mismatch in that regard, chances are low the employee would stick around for a long while. So, communicate the company culture to the job candidates well in advance, ensuring they understand not just what their prospective role entails but also the kind of environment they will be working in.
Keep an eye out for employees with toxic attitude
Toxic employees display the following types of behavior: being unwantedly critical of team members, frequently blaming others, gossiping, and working only with their own best interests in mind.
The problem with having such employees is twofold. The first is obvious- they could spend their time better than indulging in negative habits. The second is even more crucial- their presence prompts other high performing employees to move out of the organization. If you are aware of toxic employees in a team, have a face-to-face discussion with them. Try to get at the root of their negativity and induce them to change their behavior.
You should also periodically check with fellow-team members to know if they face problems because of them.
Offer your employees flexibility
Flexibility in how they work has been a point of interest for employees for years. But it has become even more important in the post-pandemic world. Given this, it is only logical that employees would gravitate towards those companies that offer greater flexibility. Remote working is eminently practicable- this has been illustrated over the past two years or so.
But aside from remote work, employees seek options like being able to choose their working hours. Companies can stipulate they should work for so many hours per day. However, what time of the day an employee works could be a decision left to them.
Offer competitive salary and benefits
To help reduce employee turnover, make sure the salary you are offering is valuable to a prospective employee, check it against industry standards. If your offer is subpar compared with other firms, consider revising it.
Also, ensure that employees get adequate growth in salary year on year. The increment could be based on their performance.
Bonuses tied to the successful completion of a project is another compensatory perk to consider. Processes should also be in place to identify best performers. Their pay may be increased accordingly. Last but not the least, ensure no disparity in pay exists on the basis of gender or race.
Establish a career path for employees
A sign of a poorly managed company is an employee getting stuck in the same position, earning the same pay for a long duration. Even if a new employee joins, once they become privy to this reality, they would be eager to leave. So, it is crucial to chart a career path for employees.
This could be a vertical path- whereby the employee moves to a higher designation in the same department. Or it could be a horizontal move in which the shift is to another department that’s a better fit for them. Yet another possibility is to give the employee more responsibilities and rewards in their current role.
To help re-engage the employee, book a 1:1 with them to discuss their future career path with the organization.
Enable learning and opportunities to grow
In the digital economy, continual learning is not optional but necessary. To this end, give your employees ample opportunities to upskill. But training need not be given conventionally: a daylong session conducted in a classroom-like environment. The smartest companies make training a part of the employee’s daily tasks rather than something external to them.
Delivering training in smaller modules, through novel media channels could also be tried. The results of such experiments should be recorded, to gauge their effectiveness.
Some employees may wish to be trained for roles different from the current one. The common tendency is to consider such wishes as of secondary importance. That attitude isn’t necessarily healthy though. For one, many roles could get obsolete with automation. So, learning a different skill could benefit the employee.
Meaningful training sessions improve employee skills and morale, which in turn improves retention and helps lower employee turnover.
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