Dealing with Employee Turnover
August 23rd, 2010How do you retain your employees after you hire them and prevent high employee turnover?
These are problems faced by all sizes of business. You need to anticipate what kind of turnover you might have, but it’s a hard thing to do. For that reason, the recruiting process should be ongoing.
Turnover also has its advantages – new people bring in new and innovative ideas. But you need to keep in mind that excessive turnover is usually a sign of some fundamental problem with the business and so steps should be taken to address the problem.
Turnover also has a financial cost to the company – estimates of the total cost of employee turnover range from 50 percent to 150 percent of an employee’s annual salary.
Turnover is usually more of a problem with blue-collar and younger employees. One way to reduce turnover is to offer incentives to stay with the company. These can include such things as more vacation time, flex time, job sharing and wellness time.
It’s also important that company leaders share with employees the vision and direction of the company and communicate with employees the benefits of staying with the company.
It’s also important for the company to understand the reasons for turnover. Companies have set up different ways of doing this, including exit interviews for employees leaving the company, employee surveys, employee focus groups, and post-employment interviews.
To reduce the amount of turnover, some companies have modified their compensation packages, while others have made changes to their interviewing process. They are focusing on the fit between the person and company. Does the candidate share the values and goals of the company? Some companies are emphasizing career development more. They have ongoing career development programs, tuition reimbursement programs and skills training to try and retain workers.
Other businesses have become more employee oriented in an effort to retain workers. They actively try to engage employees and get them involved in ideas for improving the company. They let employees know they have a voice within the company. In addition, the companies emphasize recognition of employees.
Also, companies are working on compensation packages that include long-term incentive compensation and bonuses. They are being more creative with their compensation to retain employees.
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