Are you interested in steps that you can take as an employer to quickly reduce your turnover? Turnover is the number or percentage of employees who voluntarily or involuntarily leave your employment in comparison with the number or percentage of employees who stay in your employment over a certain period of time, generally a calendar year.
Your Turnover Ratio
Your turnover ratio is a useful measurement, a finger on the pulse of employee satisfaction within your organization. Low turnover? Your employees are likely happy with their employment. High turnover? You're not doing enough to understand why employees are leaving your organization.
Turnover is also a testimony to how effectively the recruitment process you employ is functioning. Turnover rates give you insight into how well your managers are interacting with employees. Turnover is a window into your organizational culture, the environment you provide for employees in your workplace.
Employee Turnover Prevention
Potential turnover prevention starts from the very first day when an employee joins your organization. It ends on the last day you employ the person. Organizations that are significantly committed to keeping their best employees institute the policies, practices, and compensation that will retain the employees that you really want to keep.
Measuring Turnover and the Reasons for Turnover
As you measure turnover, differentiate between the employees who leave for reasons you could not impact vs the employees who leave your employ by choice. Employees who involuntarily leave your employment through layoffs or termination count toward your turnover numbers, too.
The Society for Human Resource Management provides a guide for calculating the turnover rate that is comprehensive. The Bureau of Labor Statistics (BLS) offers this employee turnover information through last year. Average turnover has been running at 3.7-8 separations per month since mid-2018, an increase in the employee separations per month prior history.
Turnover is expensive, disruptive, and impacts the morale of the remaining employees. Turnover is often preventable when an employer offers market-driven compensation, better than average employee benefits, and a workplace culture that appreciates and engages employees.
You Cannot Always Prevent Employee Turnover
Turnover is occasionally not preventable, but with attention, reducing voluntary and involuntary turnover is a solid and achievable goal.
In an economic climate when jobs are scarce and many employees have decided to stay with their current employers, turnover is not significant for many employers. In an improving economy, however, experts agree that all of the dire predictions organizations receive over the of years about turnover may come true, if you believe the pundits.
You Can't Do Nothing
Turnover will increase if you do nothing to prevent it. Reducing turnover will save employers costs and employees energy and distraction.
Four Tips to Reduce Employee Turnover—Quickly
Preventing turnover is a long term goal in most organizations. These are the four areas in which you will want to concentrate your efforts now for best results in preventing turnover. in the future
1. Examine your compensation, both salary, and benefits, to make sure that your employee compensation has not fallen behind the market during the past couple of years of lower wage increases. Especially for employees with scarce skills, management experience, and senior leadership roles, compensation in this job market has advanced and your company may need to catch up to retain valued employees.
2. If you ever subjected your employees to austerity measures and canceled traditional perks, events, and motivational employee activities, consider gradually reinstating the missing opportunities. Perhaps you used to buy employees an occasional lunch or provide free drinks at work. The lunch doesn't have to be elegant or cost a lot of money. Pizza is not expensive. Schedule brown bag lunches for employee development and employee engagement.
3. Create small wins with employee recognition. Write personal thank you notes. Award a $100 gift card for an exceptional employee contribution. Say "thank you" more frequently. Make sure that you exhibit interest in and demonstrate that you value each employee. Sincere employee recognition is always a win—for you and for the employee.
4. Hold a quarterly performance development planning meeting. Focus your main discussion on the employee's personal and professional development goals and aspirations. Yes, business goals are important to clearly communicate, but never underestimate the impact and value of the career development aspects of the PDP.
More About Reducing Turnover
Are you interested to find out more about how to limit valued employee turnover? It's important if you wish to build a workforce that will accomplish your business goals. Find more information about the causes and prevention of employee turnover including 18 ways you can reduce turnover in your organization.