Employee turnover is a fact of life for any business with employees. Even in my business, employee turnover occurs. Employees arrive and depart. When employees leave, the cost will be high. (Fredrick, 2010). Finding and training a replacement takes time and money. That is why it is best for businesses to minimize their turnover.
(Source: Marshall, 2018)
How to reduce employee turnover
Hire the right people.
The best way to ensure that employees
do not leave is to hire the right people in the first place. Clarify the role
for yourself and the candidates. And then confirm that the candidate is a good
fit for not only the position, but also for your company culture.
Keep compensation and benefits current.
Assure that you pay employees a
living wage (or more) and provide competitive benefits; otherwise, who can
blame them for quitting? This may seem self-evident, but you'd be surprised at
how few employers offer raises commensurate with an employee's development and
actual increasing worth.
Encourage generosity and gratitude.
Encourage your employees to be
pro-social. When employees have the opportunity to connect with one another
through acts of kindness and appreciation, they will be healthier, happier, and
less likely to leave the company. Additionally, by encouraging them to be on
the lookout for commendable behaviors, you instill a sense of ownership in
employees.
Recognize and reward employees.
Demonstrate your employees' value
and appreciation by providing them with real-time recognition for their
accomplishments and efforts. Make it specific, social, and backed up by
tangible rewards, and you will reap the benefits of their loyalty.
Offer flexibility.
Today's employees crave a work-life
balance that is flexible. This has a direct effect on retention. Indeed,
according to a Boston College Center for Work & Family study, 76% of
managers and 80% of employees indicated that flexible work arrangements aided
retention. And an increasing number of businesses are becoming aware of this.
That means that if you do not provide employees with flexible work hours and
locations, they may easily leave you for someone who does.
ABC Company can use
these tips to help build a culture in your organization that will keep your
turnover rates low, and your best employees on board and productive for years
to come.
References
Booth, S. & Hamer, K., 2007. Labour turnover in the retail industry: Predicting the role of individual, organisational and environmental factors.. International Journal of Retail and Distribution Management, pp. 289-307.
Marshall, K., 2018. 3 Ways Hospitals Can Improve Nurse Retention. [Image] Available at:<https://www.americanmobile.com/nursezone/nursing-news/3-ways-hospitals-can-improve-nurse-retention/> [Accessed 17 August 2021].
Marzullo, D., 2019. How to Decrease Employee Turnover. [Image] Available at:<https://www.zenefits.com/workest/how-to-decrease-employee-turnover/> [Accessed 17 August 2021].
Fredrick, P., 2010. Employees’ Turnover Repercussions. Journal of management, Volume 6.
Kirschenbaum, A. & Weisberg, J., 2002. Employee turnover intentions and job destination choices. Journal of organisational behaviour, pp. 32-46
Work Life balance, Low Wedges, Toxic environment, Health Issues and etc. are few reasons for employee turnover. High employee turnover ratio will incur a high cost as well as lose of knowledge employees. Employee turnover is a KPI of measuring the success of organizational HRM process. Therefore must be controlled with necessary strategic implementation.
ReplyDeleteWell said, Offer performance feedback and praise good efforts and results to reduce employee turnover.People want to know that their work matters and makes a difference. People want to enjoy their work. So it very sensitive to work with people and retain them.
ReplyDeleteEmployee turnover is a problem that almost every business of any size needs to deal with at some point. For any company dealing with staff retention challenges, getting a handle on the problem should be a top concern. Keeping track of your personnel turnover rate, the costs associated with it, and the underlying causes will help you keep ahead of possible problems and minimize them sooner.
ReplyDeleteEmployees are the main assets and motivated employees are resourceful asset to the organization and the productive will be very high. Every organization should have the effective retention strategy based on their nature of business. This reduce the high turnover increase the retention in the long run.
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ReplyDeleteAs a result of disruptions to continuity, loss of institutional knowledge, and the high cost of replacing departing workers, organizations with high employee turnover rates may find it difficult to fulfill their Visions and Missions. Employee departures result in a loss of productivity and competitive advantage, two of the most significant losses for an organization. In addition to lowering morale, employee departures can also encourage more employees to leave the company. Workplace team building and cohesion depend on employee retention so workers can learn to trust and depend on each other. Customer dissatisfaction is another downside of turnover.
Employee retention is critical to a company's success. Businesses agree that satisfied customers lead to increased product sales, happy coworkers, effective succession planning, and the preservation of historical and institutional organizational knowledge and learning. To achieve this, they rely on effective communication, training and development, review methods, and the assignment of important and critical projects in order to make them feel that they are extremely valuable to the organization.
ReplyDeleteReally informative topic Nishantha I personally think that employee turnover is extremely controllable from an HRM perspective with the right motivational & supportive tools & techniques. Great Read overall
ReplyDeleteAn important and good topic Nishantha,
ReplyDeleteAgree with you and any company should make reducing staff turnover a priority. According to experts, recruiting, hiring, and training a replacement may cost up to double the salary of the employee. Turnover may also have a detrimental effect on the morale of existing workers, reduce productivity, and make it more difficult to recruit fresh talent (Swain, 2019).
The workforce is the success driver for any organization. In the long haul, companies need profitability & success to thrive and stay relevant in an ever-evolving market. With an evolved employee-centric culture, employers need to ensure that they provide an optimistic work-environment to retain their top talent. Good topic and thanks for sharing this valuable article.
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