Yes, you heard it right!
It’s high time to keep an eye on rising employee turnover rate because it is directly affecting your company’s bottom line.
According to a CAP study, it is found that average cost to find a replacement for a low-paying job is 16% of the annual salary (estimated for the salaried employee) whereas it is 20% for mid-range positions – which sums up to a BIG amount for SMBs, startups and mid-size organizations.
Well, it’s been quite a long time since employee turnover became a common corporate buzzword. But nothing concrete has been done so far to push back this evil…. Why? What has the management been waiting for??
In this blog, you’ll get to know the real reasons for high employee turnover rate, what cost a company pays when it loses an employee and how some brilliant HR ideas can take care of this situation.
What leads to employee turnover?
“Employee turnover rate is the percentage of employees leaving an organization and their replacements joining to fill in the vacant positions.
Change is inevitable. No matter how badly you want your good employees to stay back, they will leave you one day. When we say happier and satisfied employees help in growing business, we also accept the fact that unsatisfied employees cost high employee turnover.
An organization dealing with employee turnover challenges should focus on the reasons why their employees are leaving the workplace and make efforts to fix them.
Here’s are few main reasons why employees leave jobs:
- Fascinated by high compensation
- Indistinct individual and(or) team goals
- Less opportunities for career development
- No value to employee feedback
- Uncomfortable work environment
- No recognition and rewards
- Low engagement
….and there are a lot more reasons.
Determining motives of departing employees and implementing effective retention strategies is the best solution to skip this hurdle.
Success Mantra: Ways to Reduce Employee Turnover & Retain Top Talent
- While hiring a perfect candidate, considering only the experience, skills and qualification aren’t enough. Make a little more efforts to understand if the person can fit well in your work environment.
- Satisfying an employee with the deserving compensation is the right thing to do. Keep a check on the industry standards and how your competitors are paying.
- Be creative and supple with additional benefits, like company perks, flexible work schedules and variable pay plans.
- Don’t miss out on creating a rewarding work culture. Praise, recognition and rewards should be the common words resonating in the mind of your employees. Believe it or not, it motivates your workforce to unimaginable extent.
- Establish fun-filled and interactive employee engagement activities to give your employees ample opportunities to interact socially, build one-to-one relations and keep a positive outlook towards work.
- Set clearer goals. Every employee should have individual and team goals so that they can contribute in the best ways towards business success.
- Train, coach and mentor the low performing employees to help them reach standard performance benchmarks.
- Outline challenging work opportunities to the top performers to allow them reach new heights of success and, possibly, ensure better career development.
Always remember, employees who are satisfied, engaged, well-compensated, challenged and well-managed are more likely to stay longer with your organization. All these crucial activities can be made easier by putting a cloud based HR software in place. An automated HR system allows human resource professionals to extensively take care of competitive benefit packages, conduct stay interviews, employee feedbacks, flexible paid leaves and more; as a result of which employers easily combat and control attrition rate without costing extra to the company expense.
In the end…