Understanding Employee Turnover
Employees departing unexpectedly often take organizations by surprise. Unfortunately, full control over employee retention is elusive. Sometimes, an employee seeks growth beyond your resources, or their financial expectations surpass your budget. Other times, external factors such as a competitive market may drive turnover. Yet, you have significant control over many elements that influence retention.
Employee Turnover: Voluntary and Involuntary
Your organization's employee turnover rate consists of two main categories: voluntary and involuntary turnover. Voluntary turnover happens when an employee chooses to depart, such as finding a new job or retiring. Involuntary turnover occurs when the organization decides to terminate the employee's tenure.
Calculating the Employee Turnover Rate
Here are steps to compute your annual turnover rate:
Determine the number of employees who departed over the past year.
Ascertain the total number of employees at the beginning of the year.
Divide the departed employees by the total number and multiply by 100.
Why Reducing Employee Turnover Matters
Turnover incurs high costs, including recruitment and training of new employees, interrupted projects, and knowledge loss. High turnover might even create a vicious cycle where the remaining employees bear the extra workload, leading to lower morale and more resignations. In an era of record-high job openings, it's harder than ever to retain top talent, making turnover reduction a priority.
What Triggers Employee Turnover?
Employee turnover has many triggers, ranging from dissatisfaction and frustration to personal ambition and outside opportunities. Some common triggers include low compensation, inadequate benefits, poor work-life balance, inconvenient location, poor management, misalignment with the role, toxic company culture, isolation, few development opportunities, and small workplace annoyances.
Current Market Triggers for Employee Turnover Workplace dynamics in the current market also contribute to turnover. Employees now appreciate flexibility, including remote and hybrid work options. Organizations failing to support diversity, inclusion, and equity risk losing high-performing employees. Changing job expectations and career objectives also drive turnover.
5 Strategies to Boost Employee Retention
Leverage Engaging Data: Understand the root cause of your retention issues. Collect data from employee engagement surveys and employ 'stay interviews' to identify what keeps your employees motivated.
Use People Data: Job satisfaction and personality are closely linked. Use behavioral assessments to better understand your employees and manage them according to their needs.
Involve Everyone in Onboarding: Foster a sense of connection right from Day One by involving everyone, not just HR, in the onboarding process.
Experiment with Non-Traditional Benefits: Go beyond the norm and offer benefits like mental health resources, flexibility, or childcare assistance that address individual needs.
Promote Daily Career Development: Encourage employees to take on projects that interest and challenge them. Regular check-ins with supervisors and providing resources for employees to learn and grow can go a long way.
Tying It All Together
Reducing employee turnover may seem daunting, but the potential savings and increased productivity make it an essential endeavor for any organization. Remember, each team member you retain is a testament to your excellent working environment and your commitment to employee growth. The strategies outlined above are not exhaustive but offer a strong foundation for improving your employee retention rate.
Take Action Today
At Straightline Consulting Group, we are experts in improving workplace dynamics and reducing employee turnover. We provide tailored solutions that can help you foster a work environment that empowers your employees and encourages their loyalty. Are you ready to take the next step towards a more engaged and committed workforce? Don't hesitate—reach out to Straightline Consulting Group today. Your team is your most valuable asset; let us help you maximize its potential.
