May 8, 2018 12:00:00 AM
Employee turnover is a significant risk to your company's productivity. There are few things more frustrating than training an employee, only to see them leave shortly after. Industry-wide, the average turnover rate in the United States is15 percent. For some industries, such as services, turnover is up to 35 percent. This means that more than 1 out of 3 people leave the company and require replacement. These alarming statistics beg the question: How can your company limit employee turnover? Read on to learn 4 tips for effective turnover management.
1) Turnover Management Starts With Hiring the Right People
This is the first and most important step in the process. Your company needs an effective Human Resources department with a knack for quality hires.
It is not just about a great resume and talent. Rather, HR professionals need to select quality candidates for the right position.
One tactic to ensure quality hires isidentifying the skill setand behaviors that are historically successful. By doing so, you can confidently hire candidates with the right ingredients.
2) Quantify the Cost of Employee Turnover
It comes as no surprise that upper management is primarily concerned with the bottom line. One way to draw attention to employee turnover is by associating a cost to it.
For example, consider the costs to onboard a new employee. There are administrative and training costs to name a few.
When an employee prematurely leaves, roll up the costs to search for and retrain a replacement. This may get management's attention and potentially secure resources for a solution. Management may decide to invest in a staffing services company or offer recruitment incentives to attract the best candidates.
3) Offer Competitive Compensation and Benefits
At the end of the day, great employees are looking to be paid well. Retaining top-tier talent depends on competitive pay and great benefits.
Even more so than the preceding generations, millennials are tuned into the impact of benefits. These prospective employees are looking for a generous retirement plan and affordable health care.
This means a 401k program with an employer match. Also, millennials are looking for extensive insurance coverage including life, vision, and dental.
4) Establish a Positive Work Environment
People are increasingly looking for a positive work-life balance. In general, miserable employees are more likely to voluntarily leave a company than happy and healthy ones.
Launching wellness initiatives is a popular strategy to establish agreat work environment. Companies are investing infrastructure resources to build on-site gyms.
Another tactic is to offer flexible work schedules. This allows employees to adjust work hours to their personal life. For example, this may mean working 4 10-hour days instead of the traditional 9 to 5.
Wrapping It Up
Retaining good employees is critical to success. Effective turnover management means proactively mitigating the risk of voluntary departures.
Popular strategies to do so include flexible work schedules and competitive benefits packages, among many others. If you need help reducing employee turnover,contact usto enlist the help of a staffing services company.
