Turnover rate is a number every employer is
aware of because it directly impacts their bottom line. Whether it’s the cost
of offboarding an exiting employee, onboarding their replacement, the knowledge
drain, or the cost of training a new hire, it all equals a potentially
preventable expense. Turnover costs are commonly cited as about 150% of the
base salary of the replaced employee, but according to SHRM, it can actually be
up to 300%. So what can you do? Here are some ideas that can help you reduce
the turnover in your workforce, so you can keep this money in your business:
Attract and motivate top
management talent
Have you ever heard the expression, “People
don’t leave companies, they leave managers”? Good managers motivate their
employees to be more productive, and motivated employees are happy employees –
and happy employees tend to stay. If you have a turnover problem, don’t forget
to evaluate your leaders as well.
Offer rewards
This doesn’t always have to mean pay raises and
bonuses (although you’ll be hard-pressed to find an employee who’d turn one
down!) Employees want to feel appreciated, so foster an environment of
acknowledgement. Praise employees for specific actions, and do it publicly.
Make your workplace an environment where employees feel noticed, and know their
contributions are recognized.
Make it interesting
While it’s not always possible, remember that
variety is the spice of life. Keep employees engaged by offering advancement
opportunities and cross-training. Boredom is a productivity killer, and a
surefire way to send your employees looking for other job openings.
Keep your ear to the
ground
Most employees don’t wake up one day and decide
to quit. If you are engaged with your employees, you can spot potential
problems before they cost you money. Are your employees feeling overworked? It
might be more cost-effective to hire an additional person or bring in temporary
staff than to wait until an employee reaches a breaking point and leaves –
taking all their training and knowledge with them. Do you have a trouble-maker
on your hands? It’s best to learn about it early and take steps to mitigate
their behavior than find out too late that they’ve damaged your employees’
morale – at a certain point, firing the trouble-maker will cost you more than
just replacing them, as you struggle to bring productivity back up to its
previous levels among your remaining staff.
Hire the best
Most experts will tell you that the single best
thing you can do to reduce or prevent turnover is to hire the best person in
the first place. Making that decision can be overwhelming, and there can be a
sense of flying blind. Drug tests and background checks can offer some
information, but can be costly, so they are best saved for those who have made
it through your pre-hire processes. Your hands are tied in some legal areas –
questions you’d like to ask, but can’t; information you need, but don’t have
access to. One way to have access to some of this is through integrity testing.
Insight’s screening tools can help you identify people who do drugs, steal, and
would commit worker’s compensation fraud, among other behaviors. Some advanced
employment assessments even reveal information about a potential employee’s work ethic,
conflict avoidance skills, and likelihood to turn over quickly. In short,
Insight can give you that missing piece of information to help you keep high
risk employees out of your workforce from the start.
Investing in your business is the key to
growth, and Insight is committed to helping you identify the best people to
help you along that path.
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