If you have a high turnover rate for your business, you might be doing something wrong. Employee retention is linked to employee satisfaction, which in turn is linked to higher turnover and a more successful business. Employees are more engaged. They’re better trained in your company, and they are invested in its success. Not only is employee turnover a massive money pit, but it cultivates an environment where employees don’t feel settled. Onboarding can be complicated, and training new employees again and again can be onerous. By taking steps to retain and encourage good employees, you are demonstrating your loyalty, a move that will be repaid in kind.
If you do not already measure turnover rates, now would be a good time to start. Collecting big data can help in analyzing the strengths and areas for improvement for your business. Logging exit interviews and reports is vital. This not only helps keep track of turnover, but also provides data on areas for improvement.
So what is a good number for turnover rates? Each company is different, and there is no “one size fits all” response to this question. However, a number around 6% is often considered healthy turnover. If you lose over 15% per year this may be cause for concern, but factors such as industry may affect this figure. Set a goal for employee turnover that fits with the nature of your business.
There is never one reason why any employee chooses to stay or leave a company. Some losses are inevitable and unavoidable. Your top data analytics specialist decides to leave to pursue their lifelong dream of writing a graphic novel. Your receptionist’s wife just received a promotion in another state and he’s leaving to support her. Life happens and circumstances change, however there are many ways to instill commitment to a company. Much of the leadership team should be involved in this process. If not already a priority, company culture should be changed to reflect the ideals of the company. That is: cultivating the talents of employees.
However employee engagement goes beyond words or plans. A commitment to keeping employees should be embedded in policies and objectives for the future of the business. It helps if managers and supervisors are made aware of the initiatives and managing methods which help retain employees.
Employee engagement is a massive contributor to retention. Happy employees work harder and earn more for your business. What’s more, they contribute to a happy and healthy work atmosphere. Considering the average Australian spends around 40 hours of their week at work, atmosphere is important. There are a number of strategies to help engage employees. You should begin by asking for feedback – discovering what employees want from their position, and what is missing. From there, you can build these ideas into the workday. By monitoring progress with employees in addition to turnover data, you will be able to see if the change is working.
Flexible work hours
Social technologies are advancing, allowing for flexible work arrangements to become not just a reality, but commonplace. Employees with children, health problems, or other commitments may find it hard to commit to a 9 to 5 workday. This does not mean they are any less valuable to your company, but you may find that your business is losing talent due to time constraints. Flexible working arrangements could mean working from home, part time, or working at different hours. To many for whom the workday has been the norm, this may seem like a big shakeup, but to others, it may be the lifeline they need to keep doing the job they love.
Training and development opportunities
Employees benefit from self-improvement. Knowing there are opportunities for betterment and upward mobility can help increase employee retention rates. Implement training programs that employees have the option to enroll in. Delineate the steps an employee might take were they wishing to be considered for promotion. Stagnation is dangerous, so having a process for employee development not only engages employees, but provides you with highly trained hard workers.
If you are struggling to keep employees, it may have nothing to do with engagement, upward mobility, or hours. Sometimes, it’s as simple as payroll errors. Ensure employees are paid correctly and on time to avoid disenchantment with your business.
Rewards and benefits
If you are an employer of choice, it means that your business recruits top talent, helps them grow to their full potential, and retains them. Employees choose to stay at your business, and this kind of reputation bodes well for potential new employees and customers. Employers recognized in this way invest in their employees. They promote healthy workspaces, a good work/life balance, and provide opportunities for learning and development. Furthermore, they reward their employees for good work. This could be as simple as a culture of gratitude where managers notice and recognize good work. It could also be implemented as financial or other rewards and benefits for hard work.
However you choose to recognize your employees, it’s important that they know they are a valued part of the team. This way, you create a workspace that has no parallel.