Although it may seem more like a minor nuisance than a real issue, employee turnover can pose a real financial problem for companies. Aside from the decrease in overall productivity and the increased stress for remaining employees, employee turnover can also cause significant monetary losses.
Check out these sobering stats: While the cost employee turnover varies from company to company and level to level, it’s estimated that, for entry-level positions, turnover can cost between 30 and 50 percent of an employee’s annual salary. That number jumps up to a staggering 400 percent for high-level, highly specialized employees.
This is why it’s critical for recruiters and employers to do everything they can to tackle employee turnover in 2016. Here are a few tips to help you out in that regard:
1. Invest at the Onset
Many managers fear that, after investing a lot of time and money in the hiring process, they’ll end up with a candidate who jumps ship only a few months later. Funnily enough, managers can assuage this fear by taking the time to carefully consider each candidate from the start. Focus less on how long the hiring process takes and more on the fact that finding the right candidate takes time. That’s just a fact.
One way to ensure that you find top-tier talent during the hiring process is to make the job into a telecommuting position. That way, you won’t be stuck with the local talent pool, which may only offer up ho-hum candidates. Instead, you’ll have the pick of the best talent from anywhere in the world.
You’ll save yourself a lot of grief – and your company a lot of money – by picking the best candidate from the start.
2. Use Performance Reviews
Once you’ve hired a stellar employee, it’s up to the company and manager to ensure that the employee maintains productivity and happiness in their job. This is why employers should make it a point to offer regular performance reviews for all employees of every level.
Not only should you hold annual reviews in which you both compliment and critique a person’s overall performance for the year, but you should also make it a point to offer smaller, more personalized reviews throughout the year as well. During these reviews, you can talk professionally about not only what your employee has accomplished, but also their plans for the future and – more importantly – their satisfaction and happiness in the role.
You can use this review time to tweak employees’ jobs, if necessary, in order to make sure that each employee’s role fits their need. When an employee’s role fits their needs, the employee is much, much more likely to stick around for the long term..
3. Figure in the Flex
One of the main reasons employees quit their jobs – even ones they otherwise love – is due to a lack of workplace flexibility.
Think about it this way: If your employee is commuting upwards of 2-3 hours daily in order to work in the office (only to have to take work home because they can’t complete it all in the office, thanks to meeting and interruptions and the like!), they may be forced to leave the job – no matter how much they love it – simply because they need some breathing room.
Don’t let this happen. Instead, you should attract and engage remote workers by offering flexible scheduling options. You can even turn your existing employees’ roles into flexible jobs! Offer them the option to telecommute full or part time, work a compressed week (e.g., longer hours on Monday-Thursday, with Friday off), or share jobs (i.e., where two part-time employees can share one full-time position).
Allowing your employees to have control over their work schedules (and, in turn, their personal lives) can greatly decrease employee turnover!
Tackling employee turnover should be one of the most important things that hiring managers do in 2016. By taking the steps above, you will not only save a lot of time and money, but you’ll also build a happier, healthier, more productive, and more committed workforce!