Reasons for Staff Turnover and How to prevent it
The cost of employee turnover is sometimes very high for a company. An employer affected by this problem needs to analyze the causes of its occurrence and find effective ways to prevent layoffs of employees. In this article, we’ll take a closer look at what causes employee turnover and how to deal with it.
The analysis of employee turnover can be divided into several parts: measuring, identifying its causes, and developing strategies for retention of employees. Let’s take a closer look at each of these parts.
Measurement
In order to understand whether there is a staff turnover, you need to measure it correctly. There are several ways to determine the rate of employee turnover. The simplest and most common formula is the ratio of the number of people laid off for a certain period (usually a year) multiplied by a hundred to the average number of employees for the same period:
(number of dismissed per year) x100
(average number of employees per year)
The number of those dismissed includes everyone who, for whatever reason, left the company: both at their own request and at the initiative of the employer.
It should be noted that the turnover rate varies depending on the specifics of the department. For example, among low-skilled personnel, there is a high turnover of personnel, in contrast to employees of the administrative and management level. In this regard, the measurement should be divided into sections, departments, divisions.
The rate of staff turnover can be called from 3 to 7%. It is important to pay attention to the field of activity and the age of the organization. So for a young company, the normal turnover is 20%, for restaurant services and retail sales, this figure can go up to 30%. In addition, to determine how much the turnover rate goes beyond the norm, you can compare it with the indicators of enterprises in the same sector (competing companies). If this ratio is much higher in your company, it’s time to sound the alarm and take the necessary measures.
Reasons for staff turnover
Everyone knows that if we are faced with a problem, then it is not the symptoms that need to be treated, but its source. Therefore, to begin with, it is worth conducting internal research and finding out why people leave the organization. To do this, you can start conducting exit interviews – a conversation with quitting employees. It is advisable that the interviewer is not a former employee’s supervisor or person providing referrals to the employee. An alternative option could be a questionnaire survey. Explain to employees the purpose of the above procedures and ensure complete confidentiality.
The main reasons that can cause staff turnover are:
Poor selection
Sometimes recruiters’ desire to fill a job as quickly as possible can lead to hiring the wrong employee. Or, during the selection process, the applicant did not receive full information about the job, and subsequently his expectations were not met.
Dissatisfaction with the leadership and its attitude
It can be a personal dislike for the leader and disagreement with management methods. Staff turnover can be overestimated in environments with poor communication and poorly developed reward and reward systems. In such an environment, workers feel underappreciated, ignored, helpless, and insignificant.
Lack of career and professional development and training
On the one hand, employers value employee ambition. But, on the other hand, it can become a reason for leaving if employees do not see career opportunities within the organization. Also, dissatisfaction with the profession and the desire to change their specialty induce employees to look for a new application on the side, if they do not find it in this company.
Layoffs of other employees
For example, company mergers are not complete without layoffs. Cases are very common when, after the dismissal of the head of a department, all employees of this department leave the organization after him. In addition, layoffs that are unfair from the point of view of staff reduce the loyalty and motivation of employees.
Unfavorable working conditions
We spend a significant part of our lives at work, so it is quite natural to want to spend this time in a comfortable environment. Cramped, poorly lit rooms, poor climatic conditions, low-quality equipment or lack of it are just some of the examples that cause dissatisfaction with the workspace.
Poor adaptation or lack thereof
causes premature dismissal on probation. Even when new employees remain and work in the company for a long time, their decision to dismiss can be made already in the first weeks of employment in this company.
The prospect of getting a higher salary elsewhere
This practice is observed at all levels of staff. Money is often not the root cause, though. Salary is not a direct determinant of job satisfaction. Many employees are not satisfied with the psychological climate at work, they are disloyal and unmotivated, and money in this case is a convenient excuse to leave the company.
Staff retention strategies
So, we found out that there are a sufficient number of reasons for employee turnover. If among them are global causes (economic situation, labor market conditions) or personal circumstances (moving, caring for children, illness of a family member), then it will be almost impossible to cope with them. However, the above internal reasons for multiple layoffs can be managed. Responsibility for the retention of employees should lie with the heads of departments and HR managers. Here are some tips to help you reduce employee turnover in your company:
- Provide high-quality recruiting.
Hire the right people for your organization’s culture. Their values, principles, and goals must be consistent with the goals of the company. At the recruiting stage, provide applicants with maximum information about the job and the employer. Don’t overstate expectations or go overboard with promises. Also, apply all the necessary selection methods to identify the appropriate professional qualities of the future employee.
- Develop programs for the professional and career development of personnel.
Training programs go a long way towards building loyalty and retention. For example, such as continuing education courses, improving existing skills, and gaining new knowledge at the expense of the employer.
- Ensure employee involvement.
“Open politics” does not involve meetings behind closed doors. Employees need to realize that they have a voice and are recognized for their contributions. Consult with them on work issues, introduce the practice of collective decision-making. Provide staff with regular updates on plant updates such as financial position, policy, and procedure changes.
- Provide employees with work.
Employees should feel that something really depends on their performance. Constant employment creates a sense of stability, which is fundamental not only in work but also in other areas of life.
- Develop a competitive compensation package that includes special achievement bonuses and bonuses, and a benefits system that supports the health of workers and their families.
The needs of the staff should be taken into account. Do not discriminate against some employees. Be fair and consistent in awarding compensation. Employees will be less likely to leave an organization that cares for them.
- Do not make you work overtime or on weekends.
For most, rest is of great importance, so you shouldn’t cut it to a few hours already. If necessary, be prepared to provide schedule changes and make it more flexible. Work should be judged not by the amount of time worked, but by the specific results achieved.
- Protect your organization from headhunters.
For example, keep internal phone numbers and email addresses confidential.
If your company follows these strategies and has a genuine concern for employee welfare, you won’t have to pay the highest salary in town to have the lowest employee turnover.
