All businesses typically have to go through employee turnover just around hiring season. The thing about employees is that they come and they go. Taking a new employee into the organization is expensive. This means that an employee leaving the job is also expensive. To train a replacement, both money and time will have to be spent. This is the biggest reason why it is ideal for a business to have minimal employee turnover.
While previously an employee would only look for a good compensation and a good work environment, the new age of millennial employees look for something more. Competitive salary as well as benefit, a flexible schedule and assistance with tuition are some basics that an organization expects. This has created a strong need to develop the work culture strongly so that employees are not forced to stay, but want to stay.
Quick Statistics to Remember about Employee Turnover
To reduce employee turnover, the first step is to understand that an employee is like family. The work environment should support their dreams and goals.
- Studies showed that 16% of employees in the US felt their employer had connected and engaged with them.
- And around 75% of employee turnover causes, when examined, was
- Around 33% of an employee’s salary is spent in replacing the employee who left.
- And a whopping 51% are looking for a new job, while 50% have given assurance that they would stay for the next two years or less.
- An American stays in a particular role for around 15 months.
- The percent of millennial employees who would stay at a job for three years, despite loving their job is 3 years is 68%. Millennial leaders are also the same. 41% of millennial leaders would stay in the same company for two years or less.
Tips to Reduce Employee Turnover
When employee turnover is high, there are five quick steps that could be done to reduce it.
- Choosing Your New Hires: Potential employees should have a strong set of skills. But the focus should be laid on employees who will fit the organization’s culture. To find out a person’s fit into an organization, asking a few behavioral interview questions can help he interviewer in deciding if the candidate would fit in. An even more recent method involves the interviewer to tell the candidates about the business process and the type of culture existing in the organization. There are a number of potential hires who eliminate themselves, as they know that they would not fit in. Employees will not be happy when they do not fit into the work environment. They will ultimately feel lonely and like an outcast and find themselves being unable to get along with their colleagues.
- Offering Competitive Pay and Benefits: Any normal employee would expect their job to cover their normal everyday expenses which include housing, utilities, and food. Employees will also need money for some additional stuff as well. Unless an employee is paid well, he will not do exceptionally well performing his role and they will start looking for organizations that do. To have a rough idea on what you should pay your employees, analyze what your competitors pay and draw yourself an equivalent with those rates. Apart from compensation, employees also look for good benefits, especially when they are looking for employment in the long run.
- Give Praise and Recognition: Employees should be valued and they should feel valued. To help them be valued, bonuses and monetary rewards are good. For an employee to feel valued, they should be encouraged and recognized. They should be congratulated when they do a good job. They will feel valued when there is some recognition from the top level management as well. However, make sure that recognition is not meted out too frequently; otherwise, it loses its worth. But if you feel an employee really did do a good job, by all means, start appreciating. Promotions also go a long way in recognition and praise.
- Help them Build their Career Path: Employees who stay in a job for too long feel stranded and suffocated. They will most likely start looking for a job elsewhere where they can grow and advance. By showing an employee the kind of growth that they can expect, and if it is in-line with what they expect, then they will enjoy working at your organization. The career path will provide them with all the motivation that they need to work hard. Giving employees coaching and setting up a meeting with career guidance counselors and providing in-house training for the same are some other techniques that an organization can take up to help build an employee’s career.
- Flexible Work Schedules: Organizations should also be flexible. Employees should be empowered to choose the place and working hours. This will help the employees to establish some work-life balance for themselves. This way, the employees can spend more time on their hobbies, follow their passions, keep the appointment and look after their families.
However, not all organizations can operate this way with flexible timings. There are some hours that an employee would be expected to be. In such organizations, they can be offered flexible lunch timings. To manage flexible work time and schedules it’s advisable to have proper hr software in place that can easily create schedules and handle other tasks. Recently, employees are also seen opting for work from home options at times. This also helps them in being flexible and employees can have a life outside of their work-life. This makes them satisfied and less distracted during the times that they are at work.
Apart from these steps, a good solution is determining the cause of the employee wanting to leave and prevent it at the root, by fixing the problem. When the causes that can be prevented are taken care of, the employee turnover costs will come down by 75%. Employees like to move from a job to another when they feel like they have learned a lot from it. By keeping it dynamic and diversifying constantly, it is possible for the employee to keep learning new things and have new experiences every day. Happy employees mean a happy business, after all.