Employee turnover is a challenge for many organizations and can be quite costly. According to HR.BLR, depending on the level of the employee, turnover can cost a company anywhere from 50 to 200 percent of an employee’s annual pay. These costs include separation, employee replacement, and training costs as well as lost productivity.
The first step in mitigating employee turnover is to diagnose the reasons behind why people are leaving (exit interviews are great for this!). Although there can be a multitude of reasons why someone decides to leave, there are a few core factors that tend to drive employees out the door.
Compensation and Benefits
Are you offering a competitive package for your employees? Today, everyone has the ability to access salary data for their industry, specific position, and region. Companies are also getting creative with perks such as remote working ability. Make sure your compensation is competitive and offer attractive benefit packages.
Exiting employees often feel they have no other choice but to jump ship in order to advance their career. Unfortunately, many employers do not realize this until it is too late. When warranted, make sure you are promoting and rewarding your top employees for their efforts. If promotions are not an option, consider expanding an employee’s responsibilities or autonomy on projects.
Management could be the root issue for turnover; however, an exiting employee is usually not comfortable mentioning this in an exit interview (after all, we’re taught not to bad mouth management when leaving!). If you have identified that your high turnover is attributed to one manager, it may be time for an intervention to see what is causing employees to leave that group. In some cases, it may be factors outside of the manager’s control. However, management style could be to blame. If this is the case, sending the manager to a manager training course or engaging a management coach is well worth the money as compared to constantly replacing team members.
Look within your organization to see how you measure up to these 3 common turnover causes and take action, if needed. Check-in with your employees on a regular basis and listen to their concerns. Whatever the reason you find for your organization’s turnover, taking proactive strides today will help you keep your best and brightest tomorrow and beyond.