High turnover rate affects a company’s bottom line. It is estimated that a turnover cost is twice as much as an employee’s salary for finding and training a replacement. Employment culture is changing every day and is very common to change jobs every few years rather than growing in one company. Turnover costs vary for a different organisation and they affect the financial performance of the company. Both direct and indirect costs are involved in a turnover. Direct costs include recruitment, selection and training new people, and indirect costs include enlarged workloads and overtime operating costs.
Cause for turnovers
There are many causes for a turnover. It varies differently with companies. However, the main causes commonly lie in the economic conditions and the labour market. For example, it is easy to manage compensation benefits, work environment, repetitiveness, poor supervision, poor fit between employee and work, insufficient training, deprived communications and organisation practices. Here, we will be sharing some ways you can retain employees.
Hire the right person
From the start, hire the right person for the desired profile that you are looking for. It is also important to have quarterly reviews with the employees and conduct simple team bonding sessions so that the new employees get to bond with the older employees. During interview sessions, ensure that the chosen candidate has adequate knowledge and experience about the job profile.
Compensation and benefits
Set the right compensation and benefits to the employees. It is important to work with human resources and acquire current data on the current industry pay package. Organise creative training room sessions and offer benefits along with flexible working schedules and bonus structures. Annually review the compensation and benefits. Focus on the current trends in the marketplace and have HR update you.
It will be good if you can focus on the employees’ personal needs and offer more flexibility services. You can offer services like telecommuting, compressed schedules or on-site or backup day care.
Employees love to communicate and have social interaction. They should offer respect and recognition from managers, and a demanding spot with room to be trained and move up.
Mangers should seek how the work environment is. If it is not going well, he should arrange some services so that employees gets a positive work environment. He can also arrange training sessions that help employees to understand their task easily. But do not forget to make the training an enjoyable one. Also, awards and recognition from the managers should be taken into consideration. It is the single most cost-effective way to maintain a positive and productive work force.
Emails should be there for the praise at the completion of a project. It is important to have monthly memos outlining achievements of your team. Moreover, consider reporting accomplishments up to the chain. For easier work accomplishments should be identified. You can ask your team for weekly or monthly updates of their achievements.
Companies must develop employee oriented culture. Many companies having low turnover solicit input and involvement from all employees. It helps in maintaining an accurate open-door policy. Employees must consider that their voice is recognised by providing a contribution in the company.
Focus on other perks that include work schedules, flexible timings, anticipatory health care programs. Perks should be recognised and services like event tickets, trips and public recognition should be included. It is better to examine the issues and needs of your employees. Avoid hiring new people at higher rates than current employees.