Low Cost Ways To Reduce Employee Turnover
The cost of replacing an employee can be 90% to over 200% of annual salary, including candidate sourcing, screening, interviews, onboarding and training, according to the Society for Human Resource Management (SHRM). So, reducing employee turnover should be a top priority for your company.
Many attempts to address employee turnover focus on increasing salary and benefits. However, there are low cost initiatives that are effective. Here are five reasons for employee resignation and tips on how to overcome them.
Relationship With Immediate Supervisor
In many cases, employees don’t leave jobs, they leave managers. Some organizations promote employees into leadership positions without sufficient leadership training. This is a losing proposition for the manager, subordinates and the company. Newly minted managers often try to achieve desired outcomes without giving appropriate consideration to building relationships with their subordinates, which results in leaders without followers. Organizations should provide management training to employees who have management potential before promoting them.
Employees need information. They need to know how the company is performing, what is expected of them and how they are doing compared to expectations. Organizations should encourage clear and candid communications with their employees. Managers should provide feedback to employees with informal discussions, status meetings and performance reviews and obtain feedback from them. Employees should be encouraged to make suggestions and all suggestions should be responded to. If a suggestion is used, it should be publicized. If a suggestion is not accepted, thank the employee and explain why it was not accepted.
We are all familiar with Exit Interviews. However, a more effective HR tool is a Stay Interview, which can be used to determine employee concerns before they start a job search. Stay Interviews demonstrate to employees that the company recognizes their value and is open to making changes that will increase their job satisfaction. Some questions to ask during a Stay Interview are:
•What skills do you have that we are not using?
•What feedback would you like that you aren’t receiving?
•What opportunities for self-improvement would you like?
•What kind of flexibility would you like to help balance work and personal activities?
•What other changes would you like in your job, your team or the company?
Almost all of us respond in a positive manner to recognition and praise. Managers should recognize employee achievements verbally and with emails to the employee with copies to the next level of management and other areas of the company. Financial awards, which don’t have to be large dollar amounts, are always appreciated. Recognition and praise are key to employee retention.
Opportunity For Advancement
Most employees want to work for companies that offer opportunities for advancement. Employers should provide employees with well defined career paths and should publish job openings, including requirements, so employees are aware of opportunities for advancement. All promotions should be publicized throughout the company. Promoting employees has a significant positive effect on retention for the employee receiving the promotion and for all employees that know about them.
Hire The Right Employees
The best way to reduce employee turnover is to hire the right employees. Carefully evaluate Candidates for skills, experience, past performance and cultural fit. CNI Recruiting can reduce your employee turnover by referring the right Candidates. Please contact us today…we will exceed your expectations. Just call (908) 874-6148 or fill out the form below.
CNI Recruiting is the Gold Standard of Business and Healthcare recruiting. We recruit nationally for professionals at all levels, leveraging our Contact Database that includes over 40,000 qualified Candidates. Our referral fee is only 15% of Candidates’ first year base salary, including executive searches. There are no other charges, no surprises and we receive our fee only if you hire our Candidate.