Job retention is critical for employers due to the high cost of onboarding. Voluntary employee turnover, though, is expected to increase about 30 percent by 2023. The cost of hiring an employee can be as much as a third of their salary, according to a recent Work Institute report. Here are measures you can take to retain your most productive employees and reduce turnover.
Calculate Your Turnover Rate
The first step in overcoming high turnover is to calculate your organization’s turnover rate. Simply decide on a time frame, such as a year, then count the number of people who have left their jobs at your firm during the period. First divide the number of exiting employees by the average number of workers throughout the same time frame. Then multiply that result by 100 to arrive at turnover percentage.
Turnover rates vary across different industries. High paying jobs generally experience less turnover than lower paying jobs. The overall average turnover rate is around 18 percent. The most relevant way to view these rates is to make year-to-year comparisons to gauge your retention progress.
Evaluate Why Employees Leave
Next you should figure out why employees are leaving your company. Some of the common reasons workers quit include feeling overworked, lack of team equality and pursuing better paying opportunities. It’s common for workers to move on when they’ve assessed the workplace fosters a toxic environment or they don’t get along with their boss.
Yet another reason workers might suddenly resign is they don’t believe the organization gives them opportunities for career advancement. They might also feel left out of company decision making or aren’t treated as valuable.
Steps Toward Improving Employee Retention
Once you’ve analyzed common reasons why employees have left your company, you can determine if you need to be more flexible in certain areas with hiring and managing people. Develop a retention plan by strengthening your relationship with staff members with the understanding that retention strategies must be implemented as soon as someone is hired.
When training a new employee emphasize why your company is unique and how they contribute to the system. Treat each person as important to reaching company goals rather than as statistics. During the onboarding process explain a possible career path for the individual. Ultimately, you must create a company culture with team spirit that feels rewarding for each employee. Focus on facilitating a more human workplace.
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