Which of the following should be implemented when there is a period of high employee turnover?
High turnover can be both a good and a bad thing. When it comes to sales value, for instance, you want your turnover to go through the roof. When it comes to your employees, however, high turnover is something you want to avoid. There’s the obvious operational hassle of finding and hiring someone else and the extra workload and responsibilities for the rest of the team. Show
But the impact of high employee turnover goes beyond operational inconveniences. When people constantly leave the organization, it has an impact on employee morale and productivity and eventually on the company’s products and services. This means that high turnover costs heaps of money too. Exact numbers differ depending on the type of job and country, but research shows that it costs companies between 6 and 9 months of an employee’s salary to replace them. And that’s just the direct cost of turnover. Because then there is whatever you’ve spent on training and onboarding, interview expenses, advertising, etc. In this article, we’ll take a thorough look at high employee turnover. We’ll discuss turnover rates, examples of high turnover jobs, and causes. What’s in? What does high turnover mean? A definitionIn an HR context, (high) turnover refers to the number of workers who leave the organization. In most cases, these leavers need to be replaced by new employees. Employee turnover often is a result of poor hiring decisions and bad management. Related (free) resource ahead! Continue reading below ↓ 51 HR Metrics cheat sheetData-driven HR starts by implementing relevant HR metrics. Download the FREE cheat sheet with 51 HR Metrics Employee turnover happens due to termination, people leaving for a job they believe is better, or because they feel they couldn’t develop their career within your company. In this 4-minute Learning Bite, we take a thorough look at employee turnover: What is a high turnover rate?A high turnover rate means that many of your employees – more than what’s expected in your line of business – have quit the organization over a certain period of time. What’s considered a high turnover rate depends on the industry you’re in. Different industries and countries have different expected turnover rates. In the UK, for example, the occupational group with the highest turnover rate today is Sales & Marketing at 31%. Turnover by function group in the UK.Image source In the US, on the other hand, the industries with the highest turnover rates are Staffing (352%) and Hotels (300%). Sectors with the highest turnover rates in the US today.Image source There are numerous reports that show average turnover rates by industry (and/or country). So one very easy way to find out how your organization is doing is simply by checking out the stats; if your number is (way) above average, you probably have a high turnover rate to deal with. Digital HR Certificate Program Future-Proof Your Download Syllabus In order to compare your turnover rate with that of the industry, you need to be able to calculate your rate first. This is not as simple as you may think. Google ‘how to calculate employee turnover’ and you’ll get various different formulas. For an in-depth explanation and best practice to measuring employee turnover, check out the article How to Calculate Employee Turnover Rate from our friends at Analytics in HR. High turnover rate causesIn 2000, three scientists combined all existing literature on employee turnover. This resulted in a meta-analysis of over 60.000 employees. Their findings are presented in the infographic below (click on the image to zoom). It shows us what variables drive employee turnover and can cause a high turnover rate. We’ll explain some of these variables below. Stress Demographics Job content Examples of high turnover jobsSince we’ve looked at some of the causes of employee turnover, we can now highlight a few examples of high turnover jobs. Exact rates differ per country and industry, but jobs that have a ‘guaranteed’ high turnover include:
Other often-named high turnover jobs are jobs in education, call center agents and customer service representatives and child-care workers. People in retail, hospitality, IT and sales are the most likely to leave prematurely.3 Ways to reduce high turnoverAt the end of the day, what we really want to know is how to reduce employee turnover, right? After all, that’s how everything gets better: employee morale and productivity, the quality of your products and services, etc. HR 2025Competency AssessmentDo you have the competencies needed to remain relevant? Take the 5 minute assessment to find out! Start Free Assessment But how do you go about reducing turnover? We’ve listed 3 ways to do so. 1. Adapt your hiring strategyThis involves so many elements that it easily justifies an article in itself. To give you an idea, however, I’ll give a few examples of how adapting your hiring strategy can help in reducing employee turnover.
2. Offer a competitive dealYou can optimize your hiring strategy all you want if you don’t offer people a competitive total package you won’t be able to hire – or keep – them. That doesn’t necessarily mean you have to pay the highest salary. It does mean, however, offering competitive pay and attractive additional types of employee benefits. What these benefits are depends on what you’ll be able to offer. Flextime and (unlimited) holidays are good examples, but other benefits could be health insurance, free lunch, paid parental leave, etc. What’s important when it comes to offering people a competitive deal is that you look at the person in front of you and what it is that they find most important; for a new mom other things matter than for a college graduate. 3. Listen to your employeesThis can mean many things, of course. But in this case, it’s about your employees’ career and learning and development opportunities. Most of today’s jobseekers and employees would like to develop themselves and grow their (digital) skills. Be honest with them from the start, i.e. from the moment they apply. What can they expect from you as an employer in terms of career development? Are there opportunities to climb the ladder and if so, within what kind of time frame and under what conditions? And what is it they expect from you? Another aspect here involves learning. Employees increasingly attach importance to the learning opportunities their company offers (or doesn’t offer). In fact, a recently released study shows that workers who approve of their company’s learning opportunities are 21% less likely to have left their organization for a new role in the last five years. On a final noteHigh employee turnover has a big impact both on your employees and your organization. While (natural) turnover will never fully disappear – which to a certain extent is a good thing – it’s crucial to know what drives turnover in your organization and, more importantly, how you can reduce it. FAQWhat does high turnover mean? In an HR context, (high) turnover refers to the number of workers who leave the organization. In most cases, these leavers need to be replaced by new employees. Employee turnover often is a result of poor hiring decisions and bad management. What is a high turnover rate? A high turnover rate means that many of your employees – more than what’s expected in your line of business – have quit the organization. What’s considered a high turnover rate depends on the industry you’re in. Different industries and countries have different expected turnover rates. What causes a high turnover? Drivers of employee turnover include stress, demographic factors and job-related aspects such as the level of routine and promotional chances. What are examples of high turnover jobs? Jobs that tend to have a high turnover include retail jobs, hospitality jobs, tech/IT jobs, and sales jobs.
How to reduce high turnover? Ways to reduce high employee turnover include adapting your hiring strategy, offering a competitive deal and listening to your employees. How do you deal with high employee turnover?6 Strategies to Reduce Employee Turnover. Find the Right Talent. Every company has a different hiring process. ... . Encourage Retention Early On. ... . Recognize and Reward Employees. ... . Identify a Clear Career Path. ... . Encourage a Healthy Work-Life Balance. ... . Create Learning and Development Programs.. What happens when there is high employee turnover?The impact of high staff turnover includes decreased productivity, increased recruitment costs, avoidable time spent on training new employees, and lost sales. Businesses with high staff turnover typically experience low employee morale and productivity rates.
What are the factors responsible for high employee turnover?7 common causes of high employee turnover. Employees are overwhelmed by amount work. ... . Lack of recognition. ... . Company culture. ... . Poor relationship with Manager. ... . Lack of flexibility. ... . Remuneration and benefits. ... . Poor learning and development opportunities.. What are the steps to be taken by a company to reduce Labour turnover?Ten effective strategies to reduce employee turnover. Hire the right resources.. Allocate the right resource to the right job.. Optimize workforce utilization.. Minimize bench time.. Organize effective team-building activities.. Offer flexible work schedules.. Plan training & development programs.. Identify key performers.. |