Employee turnover is nothing new. It is something every business has and will experience over time. Gone are the days when people went to work for companies with hopes of remaining there until retirement.
Generation X proved that it was okay to aspire for more and to move on from workplaces where they could not thrive. Then came Millennials, who do not want to give more than five years to a company and are more interested in entrepreneurship.
With these changes in work ethic and career goals, employee turnover rates have increased.
Employers at every level are looking for a formula to keep employees on the job longer. Keep reading to learn how to address employee exit rates.
High Employee Turnover Rates Doesn’t Mean You’re Doing Anything Wrong
Employees come and employees go so don’t beat yourself up. One thing you can do is implement exit interviews to learn why someone leaves and if there are processes you can improve.
Once you begin to understand why employees don’t stay, you can begin to change your hiring processes. The information will shape the interview questions and the type of people you are hiring.
We’ve all had interviews where the hiring manager asks where we see ourselves in five years. If the answer doesn’t align with your business structure or direction, pass on that employee because they probably won’t stay long.
How to Calculate the Cost
There is a cost associated with high employee turnover. You’ll need to understand the cost of training new employees, paying for IT to set-up their computers, uniforms, and other essentials.
Depending on your industry the cost of employee turnover can extend into the loss of intellectual property, patents, and business data. When hiring individuals that will have access to vital information extensive background checks are needed.
In everything you do in business, measure the expected return on investment. This includes investment in employee training and more.
Incentives to Keep Employees Longer
There are ways to combat employee turnover rates. Money is not always the top incentive for employees although we all expect a fair rate of pay. The truth is there are incentives that people place above money.
Work-from-home opportunities are really big right now as well as flex scheduling. If you can’t afford to offer the best health insurance, offer a companion HSA or FSA.
Give employees opportunities to earn a performance bonus. Host employee talk sessions to understand how they are feeling and their experiences.
Most important, show employees they are valued and their opinions matter. Recognized their accomplishments and great work.
It’s Part of Doing Business
Employee turnover is a part of doing business and must be figured into your budget and business plans. Some employees will leave on their own while others will get terminated. Your objective is to recover quickly, so the business does not suffer.
Communication is often a common denominator to employee relations. Check out our Communications section for valuable tips that could make a positive improvement in the workplace.