Is Your Company Struggling with High Turnover?
Workers come and go. That is the norm. Every company experience employee turnover. However, high turnover rates can harm your business, affect employee morale and reduce the company’s production. A report by CPA indicates that labor turnover can cost a company between 16 -213% of the lost worker’s salary. The Society of Human Resource Management also reports that an organization basically spend between 6 to 9 months of the worker’s salary on hiring and training their replacements. You can avoid this by having retention strategies and better recruitment approaches.
However, it’s crucial to determine why there is a high turnover rate. Let’s have a look at the key contributors to high turnover.
Drivers of High Turnover Rates
- Hiring a lot of Entry-Level Employees
It’s noble to provide fantastic opportunities to either new graduates or younger entry-level employees. However, this could potentially cost your business since training them is expensive and these individuals have a tendency to make several career moves before settling in and sticking with a company. It is critical that a company that pursues hiring a lot of entry-level personnel have a solid retention plan that appeals to this specific jobseeker and encourages them to not intuitively keep exploring employers and various positions. Even with the best retention techniques, you may not be able to retain this jobseeker segment in your company, so a company in this situation must not overlook these additional human capital cost that impacts net profits.
- Poor Management
A majority of full-time workers spend a good portion of the day time hours with their co-workers and manager. Feeling safe, well respected and having job security are a few intangibles that are overlooked by a lot of management teams that end up contributing to higher than necessary turnover rates. In addition to these, poor management can also be in the form of micromanagement, sexual harassment, and toxic working environment. Many managers put the burden of effectively dealing with these situations back on the employee’s shoulders and even though this initially feels easier for the manager, inevitably they lose in the end having to spend unnecessary time training a replacement.
- Poor Pay
This is among the leading causes of high turnover rates. Every worker needs to feel appreciated and compensated based on their experience and contributions to the business. Employers that neglect their obligation to be proactive and keep their employees at a competitive market pay rate will only encourage employees to look at competitors and seek higher pay. Employers can also leverage additional benefits to offset an employees perspective on fair pay by offering more perks, flexible schedules, membership discounts, additional vacation time and appreciation events.
Best Practices to Reduce High Turnover
You can reduce the high turnover rate with inexpensive and free methods.
- Hire the Right People
Hiring the right employees is the first step of keeping staff. You must hire people who are culturally and behaviorally fit for the job. Sometimes it’s not all about skills. You can delve deep and ask questions to see how they react to and in certain situations. More so, tell them about your business culture and if they don’t feel fit, they will eliminate themselves.
- Give Praise
When workers do something commendable, show your appreciation. All employees need recognition and encouragement so this is an obvious one and should never be neglected. The goal is to create a positive and conducive working environment. When employees feel acknowledged, respected, motivated, and desired, they’re likely to stay.
- Offer Competitive Pay and Benefits
Employees need to cover basic bills like food, housing, utilities, and even have a saving plan. All of this can be accomplished with fair and competitive pay. Find out what your competitors are offering and most employers will find that they don’t have to go beyond what their company can afford to pay. Apart from a paycheck, employees need a competitive benefits package too. Learn more about trendy employee benefits.
Top-Rated Aviation Companies
Even top-rated aviation companies face employee turnover. It can be due to hiring processes, working environment, and the company’s working culture. Hiring, recruiting, and training aviation managers is a costly endeavor. But HR policies may help in the hiring process while maintaining cultural integrity.
Employees will always leave your company. Some look for jobs that interest them, decide to stay-at-home parents, join entrepreneurial industries or change career paths. Turnover cannot be eliminated but it can be reduced by providing a conducive working environment where employees want to stay.