By Macky Weaver, Managing Director
The high costs of high employee turnovers are costing your business more than you realize. Most business owners fail to account for the unintended expenses of employee turnover that go far beyond the initial costs of hiring and training new talent for your organization. Other costs to consider include the following:
- Negative impacts on productivity throughout your organization.
- Negative impacts on client relations as they lose key points of contact and experience project delays.
- Negative impacts on morale, which may exacerbate problems related to high turnover rates by causing even greater numbers of employee turnovers.
- Negative impacts on your reputation that make it more difficult to recruit good talent.
- Increasing costs associated with hiring, recruiting and training new talent for your organization.
Getting your high turnover under control is essential for getting your organization back on track. That involves more than just understanding why employees leave. You must also understand what motivates them to stay. Then you make changes within your organization that help alleviate the turnover rate and make your company an ideal workplace that few people will want to leave.
What Causes High Turnover?
High turnover is caused by a variety of things. It can be one or more of the following common causes or it can be something else entirely. Getting to know your people can help create a culture that promotes loyalty, engagement and low turnover. Most businesses start by considering the following causes of high turnover rates:
- Burnout and high stress.
- Insufficient compensation or benefits packages.
- Better opportunities with other companies or organizations.
- Job not as described or what the employee expected.
- Lack of communication and feedback.
- Lack of recognition for performance.
- No room for advancement within the organization.
- Poor culture fit.
Some of these offer easy solutions and quick, if not completely painless, solutions. It isn’t always easy to increase compensation organization-wide, but most businesses inevitably discover that talented employees are the best investments they can make for future growth and profit.
How Can Employers Avoid High Turnover and Improve Retention?
Once you’ve identified the key problems within your organization, the real challenge becomes solving those problems in a manner that substantially reduces your turnover rates and restores your reputation among job seekers.
Among the most important things you can do to get the ball rolling is to address the challenges head on by establishing a recruiting system and hiring process that incorporates focused retention strategies like those listed below, front and center.
- Write accurate job profiles for your organization that include experience and education required, pay ranges for positions, and more.
- Develop real intelligence about compensation and benefits within the local job market, and what your competitors are offering the talent you seek. Adjust your wages and benefits as the market requires.
- Conduct an objective assessment of your current company culture. Is there room for improvement? Are your employees happy? Fortunately, there are many unique and fun ways you can go about improving company culture. Many begin with seeking out candidates who not only have the right skills but also the right attitudes to make your company a better place to work – within the confines of the culture you seek to create.
- Develop job descriptions that match the job profiles you create. Make sure they are detailed and accurate, and that they reflect what the actual job entails. This helps to create better matches among candidates and helps candidates better understand your expectations.
- Cast a wide recruiting net allowing you to consider a larger group of qualified candidates.
- Screen candidates in person to determine the best potential matches for your organization, assess their skills, and see how well they match your company culture. Consider technology tools to assist with this, such as using video interviews, predictive databases, skills tests and pre-screened candidate databases.
- Bring promising candidates in for “trial” days on the job as part of the screening process.
- Measure your successes when it comes to hiring and retaining new talent. Then use this data to improve your efforts moving forward.
If you’re having trouble with these or they seem a little daunting to you, consider working with the professionals at Alluvion. We are a quality Recruitment Process Outsourcing (RPO) company that has a wide network of talented professionals and the experience and technology to arrange ideal fits for your organization, the roles you have available, and the company culture you’re working to cultivate.