Causes and How to Reduce Employee Turnover
An organization should have a plan and strategies to reduce employee turnover as well as a plan to increase employee engagement. These are two factors that are drastically affecting workplaces across North America.
Human capital is an essential asset for any organization. After the past few years, there has been a shortage or workers causing employers to battle employee turnover. This can be a costly process to find, hire, and train a new employee.
TOP CAUSES OF HIGH EMPLOYEE TURNOVER
Low Salary Compared to Industry Standards
- Most organizations find that the majority of employees may leave is due to the low salary being paid. Although employees can expect a 3-5% annual hike, on average, when remaining at an organization, they will likely switch to an employer that offers a 15-20% pay increase.
Lack of Appreciation
- When an employee is not appreciated or their hard work is not valued, they will likely be less motivated and start to disengage in the work. Appreciation and rewards are vital for all workers to show respect and thank them for their hard work and dedication towards the company goals.
Better Opportunities Elsewhere
- If there are no/limited growth opportunities or favoured promotions in an organization, an employee is likely to leave to find a better opportunity that offers growth and development. Most workers do not want to stay in the same position for 5+ years, they want to grow, take on more responsibilities, and develop their skills.
BEST PRACTICES TO REDUCE EMPLOYEE TURNOVER
Get to Know Your Candidates
- Recruit the right employees. Take the time to get to know candidates in the recruitment process to ensure there is a compatible match. Understand their needs and goals and check if they align with your organization.
Provide Development Opportunities
- When an organization offers development opportunities it provides growth for their employees. The employees will feel more engaged, motivated, and happy to work.
Improve Work-Life Balance
- An organization should ensure there are boundaries to allow for a positive work-life balance. The company should ensure that their employees are not overworked by working extra, strict deadlines, and so on. Employers should not contact employees out of office hours to respect the employee’s free time.
Maintain Constant Communication
- Introduce an open communication policy in the organization. Allow employees to feel comfortable to talk with their manager or supervisor about problems or concerns. This also allows for regular meetings to discuss work performance and salary expectations.
