Employee turnover is costly, time-consuming, and energy-draining. The recruiting process involves advertising job postings, agency fees, and a considerable number of hours screening and interviewing before actually hiring a suitable talent. It costs an employer 33%–200% of an employee’s yearly salary for their exit. Even after getting their foot into the organisation, one-third of new employees quit after six months—making attracting and retaining talent one of the most intense challenges HR executives face. With an average annual turnover rate of 11%, businesses are experiencing lower profits to compensate for disruptions caused by employee walkouts.
Multiple variables contribute to high employee attrition, and the reasons continue to pile up since COVID-19 galvanised the way we work.
We have studied the top reasons for employee departures and consolidated six strategies to retain your best workers.
1. Analyse Your Turnover
Data is king. Deep dive into the reasons your employees are moving away, especially high-performing workers. Collect and measure your turnover rate, then make quantifiable hypotheses to see precisely which areas you can improve. To start, here are some of the more popular reasons (in no particular order) for employees to leave:
- Lack of purpose
- Burnout or overworked
- Inadequate salaries, benefits, and compensation
- Stagnant position with no opportunities for growth
- Poor management/toxic work culture
- Rigid work arrangements
- Lack of challenge or boredom
- Lack of recognition
More often than not, employees will allude to more than one reason listed above. HR professionals should play strategic roles in identifying the weakest link and stitching where it cuts the deepest.
2. Review Pay and Benefits
Inflation rates and the cost of living continues to rise. Naturally, companies need to pay employees a fair wage paired with competitive benefits. Compare your offer to that of your competition and be creative with your low-cost rewards, like employee discounts or bonuses for punctuality/satisfactory attendance. Although tangible benefits are not the only reason people consider taking another job, it sure is a massive advantage if your offer is too hard to pass up. After all, paying people well is also a measure of how much you value your employees’ contributions.
Be transparent and specific about the perks of working for your company by stating your talent-retention USPs. Avoid trying to be subjective or mysterious because one wrong move or unfulfilled promise might anchor your organisation’s name in a viral post on LinkedIn or Facebook—it could turn out either positively or, God forbid, PR-can’t-save-you bad.
3. Offer Desirable Working Culture
What do potential employees want that you do not have? Look within to identify the missing carrot—apart from the monetary drivers. Since the emergence of COVID-19, the demand for flexible working arrangements stay rested at the top of the list. 1 in 3 professionals working from home would look for a new job if required to return to the office full time, and companies that provide the option for remote work have 25% lower employee turnover. As long as the world still lingers in the post-pandemic recovery stage, remote and hybrid workplaces will remain an expectation rather than a benefit.
Do not forget to practise a culture that prioritises work-life balance and mental health. The Great Resignation made a significant dent in the job market dynamics as employees began to hold their ground in demanding better working conditions. Bosses need to understand that workers have lives outside of work, and it is essential to respect their boundaries to avoid the risk of growing resentment and burnout. Show empathy and extend assistance to employees struggling with mental wellness, like offering stress management programmes or an extra day off.
4. Improve Hiring Strategies
You offered excellent compensation and worked to build a positive culture. Still having trouble scoring the right fit for your team? Well, news flash: 80% of employee attrition is due to bad hiring decisions. Recruiters must be truthful about the firm’s culture instead of telling candidates what they think they want to hear. Define the role clearly and paint the reality of the company’s mission and values because expectation goes both ways.
Try not to shortlist your potential hires solely based on academic qualifications. Please consider how well they can gel with their colleagues and whether or not they desire to be part of your business. Find candidates that possess creativity, persuasion, adaptability, and emotional intelligence. Learn to spot workers who possess the drive and endurance to strive while maintaining synergy within the team. Some companies even found success by involving peers in the recruiting process.
5. Pay Attention to Employee Experience (EX)
Once you have decided who to hire, it is time to double up on employee experience (EX) efforts—starting with an outstanding onboarding experience. Early in their tenure, employees who have had unpleasant onboarding are twice as likely to explore new opportunities. Keep in mind that 8 in 10 employees would seek a new job after one lousy day. For context, it can even happen on day one of their probation periods.
Once they have settled in, continue investing in employees to build loyalty. Prioritise workers’ professional development by providing upskilling and reskilling opportunities to remain relevant in today’s digital economy. However, like any other investment, there is no guarantee of value in return. Trained employees may still leave, but if that fear stops you from investing in them, you may risk loading more bullet points for them to walk out.
Another critical part of EX is to increase morale by nurturing and rewarding top performers and those who show effort. Show your staff appreciation by giving them real-time acknowledgement for their struggles and accomplishments. Simple “thank you”s and appreciation messages can go a long way.
To uncover more about EX, check out how to design one that is fit for the future of work.
6. Communicate and Support Employee’s Interest
Teach leaders to recognise the signs of unhappy staff and conduct regular check-ins to salvage problems while you can. Managers must promote timely, constructive, and positive two-way communication to understand workers’ pain points. But sometimes, even after threading the necessary steps, people still leave. So, turn your loss into an opportunity. Conduct exit interviews with departing employees to identify areas for improvement. HR should encourage leavers to be honest by assuring them that all responses will be confidential and will not affect how the company responds to reference checks or to confirm employment.
Engage Top Talents, Anywhere
Employee turnover impacts the bottom line of a business as hiring talents with the right capabilities is essential for meeting corporate goals. Furthermore, finding the right individuals is becoming more complex and costly, especially when COVID-19 propelled the world into the future of work sooner than expected.
The good news—businesses can now rely on a Global EOR partner to supply recruiting and staffing services efficiently and compliantly in over 50 markets worldwide.
With TG Group’s cost-efficient and compliant recruitment and staffing solutions, companies can enjoy seamless market expansion and accelerate growth.
Get in touch with us to find out more about our services: email@example.com