How do you feel about a higher employee retention rate in your organization? It is believed that employee retention is one of the major challenges faced by Human Resources departments across the world. As per a LinkedIn survey, it is estimated that the average employee turnover rate annually is around 11%. It is also attributed to the employees who might have moved jobs but could not do so due to the pandemic and the overall fear of job insecurity. Moreover, employees are nowadays demanding more flexibility.
With this in mind, it is imperative for organizations to know about ways to reduce employee turnover rate effectively. Let us know how!
Employee Turnover Definition
Employee turnover is defined as the rate at which employees tend to leave the company within a fixed period of time. If you realize that employees are leaving your organization alarmingly, there is probably an issue within the organization. It might have to do with your incentives, company culture, the overall management, and other aspects. Employee turnover can be damaging to an organization of any size or scale.
At any organization, some level of employee turnover is indeed expected. You can expect that employees will stop working at your company due to major life changes like pivoting their career path or moving to a new country. However, such a situation can also arise when employees do not feel valued or feel that the work environment does not fit their values.
Why Should We Reduce It?
Employee turnover will cost companies the overall loss of money and productivity. This is because they are expected to invest efforts on hiring, onboarding, training, and recruiting. The hiring process can take around 36 days on an average. This would imply lost profits to the company. HR teams are expected to calculate employee turnover rate while comparing the rates across several months and years to increase employee retention effectively.
The job market is filled with relevant candidates. However, hiring employees is not as easy or even affordable as it used to be. Therefore, employers need to come up with a way for minimizing employee turnover. HR managers usually face the challenge of coming across the right applicants while retaining top talent.
How to Reduce Employee Turnover?
What steps can be undertaken to retain employees in your organization while keeping them motivated to be in your organization? Here are some steps to follow:
#Ask for Employee Opinions and Ideas
It is an integral part of improving employee engagement. A study report revealed that teams scoring in the top 20 percent engagement depict around 60 percent less employee turnover. Engaged employees –those who are asked for opinions and ideas, are known to come to the organization with a dedicated purpose, energy, and passion.
It is not enough to conduct an annual employee engagement survey. You are expected to take relevant actions based on the results while working towards building a culture of ample employee engagement in the company throughout the year.
#Hire the Right People
Did you know that almost 80% of employee turnover is due to poor hiring processes? If you wish to ensure employee turnover in your organization, you should hire the right candidates in the first place.
The first consideration is to analyze whether or not the candidate is fit for the open job position. At the same time, you should also think whether or not the candidate will fit the company culture. You should inform the employees about your company culture.
#Choose the Right Benefits & Rewards
Another effective way to reduce employee turnover is offering lucrative salaries, benefits, and rewards. Additionally, offer access to a benefits package with add-ons like paid time-off and life insurance.
Some businesses are capable of luring in the right talent with the help of additional perks like dental and healthcare benefits, offering free childcare, free meals, on-site entertainment and gyms, and so more. Your organization should make sure that you are rewarding the employees with a number of incentives and rewards to make them feel appreciated and valued throughout.
#Motivate Your Team
Nothing works better than employee motivation. Motivation serves as a catalyst to the success of an individual. The managers and team leaders should constantly motivate the employees towards obtaining the best out of them. If an employee performed exceptionally well, you should appreciate him or her. The top performers in the organization should remain in the limelight.
The employees should feel important for the entire organization. It is imperative for the employees to remain loyal towards the organization for delivering the best-ever outcomes.
#Keep Track of the Performance and Give Feedback
Performance feedback or reviews offer a relevant opportunity for ensuring a big win towards increasing trust and fortifying the overall relationship with the employees. It is important to improve performance management by conducting regular reviews and observing employee satisfaction grow effectively.
Committing to a continuous feedback including a well-defined annual performance feedback is important. Employees who remain satisfied with the process of performance feedback tend to be highly engaged as well as committed to the organization. They are more likely to be retained. Feedback should be specific. Offering regular feedback and bringing all of this together in a highly comprehensive performance review is a cost-effective way to retain top-class talent.
#Give Your Employees a Chance for Improvement
Employees are known to place immense value on ample opportunities for growth and improvement. In a survey, it was reported that there is a direct connection between lack of growth opportunities and higher turnover rates. If you are not providing growth opportunities for your employees, then you are not investing in them.
You can use these tips for building a dedicated culture within your organization for keeping the employee turnover rates low. It will keep the best employees of the organization on board as well as productive for several years to come.