High turnover rates can plague companies both physically and financially. Besides not being able to keep enough employees on staff, The Wall Street Journal (WSJ) reported that losing an employee can cost a company double that person’s salary due to paperwork and having to train another candidate.
While employee turnover can’t be completely stopped, it can be vastly reduced. Follow these tips to try and cut down the amount of workers walking out of your company’s doors.
Improve at the beginning
Part of improving turnover rates is simply devising a better hiring strategy to bring in stronger, better-suited candidates. In part, this has to do with how your company handles résumés. If you aren’t using an applicant tracking system (ATS) to help you sort and identify highly qualified candidates, that could be a source of your turnover. Well-qualified candidates will last longer at a company, and an ATS can be calibrated to help you find them more quickly.
Once you have identified well-qualified candidates, the WSJ recommends developing a longer, more intricate interview process to recognize if they will not only do well in their role but to see how they interact with managers. Coworkers need to be able to work together, and any glaring signs they won’t be able to may be observed during their first visit to the company.
Engagement is key
“When employee engagement is a priority, companies have 40% higher retention.”
Keeping your employees engaged in their jobs and co-workers can be difficult, but it’s the key to having low turnover rates. According to Deloitte, 66 percent of survey respondents are aware of this issue and working toward finding innovative solutions to raise their retention rates. The source also reported that “mission-driven” companies have 40 percent higher retention.
Develop strategies to keep your employees involved with their work at an emotional level, rather than just being the place they go to make money. Set aside a budget for fun activities or awards. Recognize those who may not always find the spotlight for the important work they do to keep the company afloat. Once you have the right candidates for your company, make sure you’re doing everything possible to give them the attention they deserve for making your company great.
Begin increasing your retention rates by honing in on those candidates you think will succeedin a position with your company, both from a résumé level and their emotional intelligence. Then work toward developing programs that continually give them merit for a job well-done to make sure they feel appreciated. An employee is more likely to stick around when they feel their contributions are recognized and valued.