Retaining a happy and motivated workforce is perhaps the most critical part of the HR department’s responsibilities. After all, the downsides to a high turnover are just too massive to ignore. There are the costs of making a new hire, which on average takes 42 days, and costs $4,129. Then there are the costs of training a recent employee, which averages $1,286.
And those are just the tangible costs. There also are multiple losses you can’t measure. Turnover causes a shattering effect on employee morale when a much-loved colleague leaves. It also leaves you worried if the new employee – who may be exceptionally skilled – will also be a good fit in terms of company culture. Everyone in the team needs to adjust to a new personality with a different way of doing things. And finally, there are the missed opportunities as the new personnel get up to speed.
So, retaining employees is not something to be trifled with. It’s a top priority, and to get that right, ensure you give the maximum emphasis to the factors mentioned below.
The 5 Ways to Eradicating Employee Turnover
It’s important to remember that your employees have a life outside of work, and they’re on the job primarily to sustain it. When you show them that you recognize this fact, and allow them to take care of their personal needs, it builds gratitude as well as loyalty.
Flexibility as a policy is very much appreciated, even in the most normal of times. And in these days of the Covid-19 epidemic, flexibility has an air of inevitability about it. This is backed by hard numbers. 73% of employees stated job satisfaction increased with flexible work arrangements. What’s more, firms allowing for flexible work arrangements lower their turnover by a whopping 25%.
So, ensure that your employees have adjustable work timings, a generous work from policy, and flexibility in attending meetings as well as deadlines. Condensed schedules, where, personnel work harder in a shorter time frame (so allowing additional days off) is also something to consider.
Take a Closer Look at Your Managers
Your managers are the link between your employees and the company’s goals. It’s up to you to ensure that they’re the strongest link, not the weakest. That’s because bosses play a major role in determining whether employees enjoy their time on the job. After all, 57% of employees have left their job due to a boss they didn’t like.
Besides being good at their jobs, it also important that your managers are people-persons. Or, at least have the skills to manage staff effectively. One important factor is a positive attitude. Consider this – of the staff who felt their boss focussed on their strengths, 67% were actively engaged in their work. On the other hand, among the employees who felt their manager focussed on their weaknesses, a shocking 71% were actively disengaged in their work. The cost of disengaged workers was estimated to cost the US economy as much as $300 million in 2005.
A disengaged worker is unhappy. And the unhappy ones quit, sooner or later. That’s why it’s critical to hire top-class management staff and train them often. Regular employee feedback about their managers is also a must.
Institutionalize Motivating Rewards and Recognition
Recognizing employee achievements work at two levels. First, it rewards employees who perform well and pushes them to lift the bar higher. Second, it puts up an example for the rest of the employees to look at, and motivates them to go one step further.
When your employees realize exemplary performances, as well as going above and beyond their call of duty will not go unrewarded, it changes the office atmosphere dramatically. And that’s from a source no less authoritative than Harvard Business Review. It says that 40% of employees would work harder if only recognition came their way more. Here’s another eye-opening stat – a massive 82% felt their supervisors didn’t recognize their contributions as much as they should have.
Offer Standout Perks
One way to ensure that your employees are not tempted elsewhere is to offer benefits not available anywhere. When they realize that their workplace is something others envy, they’ll be proud of where they’re at.
One smart thing to do is to tailor your perks in tune with the pandemic. Add comprehensive health insurance that also covers families. Give away tech gear that helps your staff stay in tune remotely. Put in place educational grants for employees with school-going children.
Think out of the box, so that your employees will stay in. One tip is to implement a comprehensive Work & Health policy, outsourcing it to experts like HR Assured.
Provide Advancement Opportunities
Showing employees a clear career path helps them see their future as part of the company. It indicates that you value their skills and abilities in the long term and that you want them to stay. In fact “Should I let my boss know that if I don’t get the promotion that I’m leaving?” is such a thought-provoking question, that it has more than a dozen answers on Quora, as well as nearly 30,000 views.
So let your personnel know that you have long term plans for them, and they’ll feel the same way about you. Communicate often, understand what their ambitions are, and show them the way. Also provide training opportunities, so that they can reskill and upskill.
Always remember that it’s not just one factor that causes employees to quit. It’s often a combination of multiple things. But often, one point among those mentioned above is the straw that breaks the camel’s back. So ensure you fix them, and your organization will surely profit.