Updated: Jan 2, 2019
Employee turnover has a higher cost to your business than you think. Depending on your organization and the employees you're dealing with, turnover can cost between 40 and 400% of the employee's annual salary.
Turnover doesn't just mean hiring costs and training costs, nor is the impact of turnover limited to the time needed to recruit and train a new employee. You'll also lose previously trained employees, including losing the money and time invested in them. As employees leave, their knowledge leaves with them, which means that you may no longer have the right employees to fill all of your roles. Not only that, new employees are often ineffective in their early days on the job, when they may be struggling to figure out their role and where they fit into your organization as well as learning more about their place. If you want to improve your odds of keeping employees in your business, try some of these strategies to help reduce turnover.
1. Optimize Employee Location
Getting employees in the right location can go a long way toward reducing their odds of leaving. Long, frustrating commutes can suck unpaid hours out of employees' days, leaving them eager to change jobs when something opens up closer to home. By integrating Staybil's Workforce Geo-Optimization technology, you can reduce the time employees have to spend commuting to and from work, which in turn will reduce employee frustration and make them more likely to stick with your organization. This can also help reduce employee absenteeism and tardiness, since they're closer to their workplace.
2. Improve Work/Life Balance
Many employers assume that millennials want fun perks to make their jobs happier: game rooms, free food, and great outings with their employers. The truth, however, is that millennials--who now make up the majority of the workforce--are really looking for jobs that will support their lives outside of work. While on the job perks matter, they also want to be able to leave work behind and enjoy the rest of their days. They respond better to flexible work hours, the ability to work from home when needed, and hours and schedules that allow them time for home, family, and outside hobbies. Providing that balance as an employer can substantially decrease employee stress and make your workplace a more desirable place to work.
3. Offer Adequate Compensation
Your employees have access to more information than ever. They know how much their position should be worth, and they know what other employers are offering. If you want to keep your employees, compensation is still important. If you offer reasonable compensation, including appropriate benefits, you'll be less likely to lose your employees.
4. Provide Stability
Millennials, in particular, crave stability. They've experienced the impact of economic downturns and an unstable workforce. When a job with your company offers stability, they're likely to stick with it. Do your best to keep workers in your company, rather than bringing in temporary employees. When you offer stability, they'll be more likely to stick with you.
5. Provide a Positive Organizational Culture
What is it like to work for your organization? Do you offer positive interactions, provide high levels of communication, and encourage employee engagement? Is employee happiness a top priority in your workplace? Only 8% of the global workforce reports a high intent to stay in their current positions--and those who intend to stay tend to be in organizations with a strong, positive culture. They focus on acknowledging and praising good work, involve employees in their processes, and create a place where employees genuinely like their jobs. When you offer a positive organizational culture, your employees are more likely to want to stay with you.
If reducing employee turnover isn't one of your organization's primary goals, chances are, you're missing out. You're losing quality employees and may not be able to keep your best talent within your company. On the other hand, when you shift your focus to help keep employees in place, you'll quickly experience the benefits.