A high turnover rate is a big headache for managers of most companies. In some industries, it is because of the complex nature of the task that the turnover rates are high; as the technology industry. In the other industries too, unless controlled, a high turnover rate can increase your HR-related costs. Therefore, reducing the turnover rate does not just bring down the HR costs, but also increases work satisfaction and employee morale. On the other hand, a high churn rate affects morale negatively and affects the performance of the remaining employees. Some of the key areas that managers must focus on to bring the desired change are the following:
Recruitment strategy: Having the right recruitment strategy solves half of your problem. If you hire the right people who easily fit into your organization and its culture, there would be no difficulty retaining such people for longer. So, having a smart recruitment strategy is absolutely essential. Hire the right people after deep analysis and interviewing.
Benefits and compensation: Your compensation strategy needs to be just as well designed. Ask your HR manager to research and find industry trends. Develop a compensation policy that is on par with industry standards. Employees always feel motivated by a good salary that comes with perks. They also like to work longer for such companies. Apart from the salary, it is always smart to add some benefits that keep employees satisfied.
Better work design and flexible schedules: Managers must focus on individual employees and their needs. Some may need a flexible schedule. Changing the work design also reduces the monotony in the work. Provide employees with the required level of flexibility. If you act in their favor, they will act in yours.
Employee engagement: Employees may feel like leaving the organization early if they are poorly engaged. The focus must be on creating a positive work environment that is both challenging and rewarding. Managers must create a rewarding experience for their employees by creating an environment that provides both learning and opportunities growth. If you wish to retain your best talent for long, do not forget to engage them.
Recognize and appreciate: Do not let chances of appreciation go. In several organizations, employees grow frustrated because they feel that their contribution is not being recognized or appreciated. This can be detrimental and can result in a high churn rate. So take time off to appreciate your employees and their contribution. Encourage them to carry on and appreciate their work whenever they accomplish something as per expectations. This keeps their motivation high and enables them to perform better for the company. In the long term, it translates into a higher retention rate. Even in the short term, employees are happier and satisfied with their jobs. It also provides them with job security and creates a positive image of the company internally.
Reduce stress and create a positive environment: Often when the work pressure is high, jobs become stressful for the employees and then the turnover rate grows high. Employees start leaving the organization because of work-related stress. To deal with this issue, managers must focus on things like job deѕign and flexible work schedules. Every employee must feel respected and included. An environment of inclusion and diversity also helps achieve low turnover rates. HR managers must create policies that make everyone feel included. Having anti-discrimination and anti-harassment policies too improve employee morale and help retain people for long.
Give employees clear directions: Never leave employees confused over what they are expected to accomplish. Set clear goals for them and help them move in the right direction by providing guidance and support. When necessary use training programs to guide behavior and work. Setting clear goals helps employees know what they have to achieve and how they must proceed.
Performance management: Performance management is a critical area and without focusing on it you cannot expect your employees to remain too long with you. However, instead of considering it a once a year task, you must focus on round the year performance management. At least ongoing feedback is a must and it must not always be negative. Too much negative feedback hurts employee morale and causes dissatisfaction. Use both technology and personal support to groom your employees and help them perform better. If employees can feel that their career is moving along the right trajectory, they will stay satisfied. Managers muѕt review the performance management techniques employed by well-known companies if they want to manage their employees’ performance effectively.
Usually, hiring and training a new employee costs double that of retaining an old one. So, if you do not want to increase your HR costs, you can use the above-outlined strategies to reduce your turnover rate and increase employee satisfaction. Moreover, a high turnover rate can become a headache in the long term and can result in larger losses. So, keeping it minimized using the right mix of strategies is a good option.