Talent retention is massively important. When your HR professionals can stop hiring the same positions over and over again, they can focus on company growth. It's hard to understand where your company will be in five years if you are always hiring for the same positions that never seem to stay filled. Employee turnover is wreaking havoc on your HR department and your company in general.
The Cost Of Turnover Per Employee
Employee turnover is not cheap. When employees leave, no matter how small their role is, it costs your company money in productivity and even more to hire a new employee. Even people who have hiring down to a science struggle to hire excellent employees to replace those that they have lost.
Employee turnover puts HR departments into a vicious cycle. They need to hire new employees as quickly as possible, but those new employees are no better than the original employees who left. This cycle of hiring, employee turnover, and hiring again creates turmoil and stress in your HR department.
Turnover Costs Us $15,000 per employee (source)If we put a monetary value on employee turnover, it can cost $15,000 per employee on average. Some fields may feel the effects of employee turnover on an even larger or smaller scale. Either way, you should expect employee turnover to negatively affect your business in some capacity.
Why Great Employees Leave Your CompanyThere are many reasons that great employees leave your company. Your first thought may be that people are leaving your job because they got more money somewhere else, but this isn't always the case. It's not always about the money you can offer them!
Employees Don’t Feel Like Their Feedback Is ValuedYour hire employees for a reason. Hopefully, you trust that they can do their job and understand when things need to be improved or changed. If your employees are voicing their opinions, but they don’t feel like anything is being done about it, they may choose to leave your company.
You may value what they have to say, but your hands are tied when it comes to implementing their feedback. Your employees will only understand that if you tell them about it. As a manager, it’s your job to take their feedback, understand what you can and can’t solve, and make sure that information gets to your employees.
Lack Of Development Or Advancement OpportunitiesWhat does advancement look like at your company? If employees feel stifled at your company, there is a chance that they will seek out companies who value their skills and have room for them to grow. Your employees may even take a temporary pay cut because they feel another company gives them more room to grow.
Lackluster Candidate Selection
Last, but not least, a huge reason that you may have a high turnover rate is because of poor candidate selection. If you picked candidates that don't mesh with the company culture you've built, there is a high chance that they won't want to stay. Employees will begin to understand if they fit in with the company over time. If they start to notice a poor culture fit, they will look for work at a company that matches their personality.
What Companies Can Do To Avoid Employee TurnoverIf you want to avoid high employee turnover, here are a few things you can do:
Start On The Right Foot
While the applicant journey seems far removed from your current employee turnover problem, you should think again. When you put applicant communication at the bottom of your to-do list, you aren't left with the best talent.
A competitor could have already taken the best talent that you thought would be perfect for your job.
Utilize applicant communication systems like ConveyIQ to make sure that you keep all your best applicants engaged throughout the hiring process.
Create A Mentorship ProgramOnce you have hired your new employees, you should create a mentorship program that helps your employees stay connected to your company during those crucial first months. The mentors will be able to keep your new employees feeling connected to the company. Mentors will also be able to step in and help your employees make rational choices when they are thinking of leaving your organization.
Often employees can slip away unnoticed because they don't have anyone to talk to about their issues with the company. A mentor is your new employee's guide to the company.
Focus On Building Stellar Compensation Strategies
While you are starting on the right foot and building your mentorship program, you also want to focus on compensation. While it is not the main reason your employees quit, compensation is essential. Your best workers cannot work on the love of your company alone.
You should also spend time building out advancement opportunities for your employees. Once a worker feels like they have reached the last of the advancement opportunities they have, they will begin to seek other employment arrangements. You never want your employees to feel held back by the company structure you have created.
Fixing Turnover Issues Starts Small
You cannot expect to fix your company's issues with employee turnover overnight. These issues took a while to manifest, and they will take longer to fix. Start with a small action that you can take today to address turnover. One thing you can do right now to address employee turnover is figure out how big your company's turnover issue is.
Ask leaders in your HR department about employee turnover and get an employee turnover percentage if you can. From there you can determine what you need to do to lower that number and create a successful plan of how to do it.
Do you want to hire the best employees? Check out our white paper on optimizing the applicant journey today, so your company has more applicants to choose from.