Attracting and retaining the top performers is a challenging task for any company. Organizations at the top in their respective domain know the value of employee turnover. To maintain a solid workforce, they constantly look for opportunities to reduce employee turnover. They continuously hold down their top performers, which eventually helps them achieve maximum productivity. All these strategies and methods are based on employee turnover.
What is Employee Turnover?
In very simple language, employee turnover is measured by the frequency of employees leaving a business. Employee turnover is calculated monthly, quarterly, and annually in any organization. There are two types of turnover included in the turnover rates, i.e., voluntary and involuntary turnover. Involuntary turnover, employees who leave an organization or business pursue educational opportunities, new jobs, retirement, or personal reasons are considered. However, employees terminated for behavior violation or inadequate performance are considered involuntary turnover.
Cause of Employee Turnover:
According to various studies, it is found that the core reason behind the cause of employee departure is better opportunities in terms of salary and benefits. These better opportunities help their career growth and achieve a better work-life balance.
Why is Reducing Employee Turnover Important?
An organization always looks for profitability and reducing employee turnover adds a significant portion of the profitability. When it comes to achieving the desired business plans and goals, an organization needs the right people with the right skills. Moreover, finding and hiring quality employees is a challenging and costly task which an organization usually avoids to save capital and resources.
3 Ways to Reduce Employee Turnover
Organizations can follow a few strategies to reduce employee turnover and keep high-performing employees. These strategies prevent employee turnover by small changes in the employer’s career growth opportunities, compensation, manager relationships, and many other aspects.
Hire adequate people: Hiring adequate employees is a task for the recruiters. The blame for poor hiring falls on the recruiting body of any organization. While recruiting, recruiters must be well aware of the requirement, purpose, goals of the organization. One method for healthy hiring is letting the peers in that person make the hiring decision.
Terminating toxic employees: Organizations filled with toxic employees face significant losses. Toxic employees are those employees who usually gossip, blame others, undermine colleagues, and are selfish. Identifying and terminating such employees is very crucial for the overall development of an organization.
Offer flexibility: Flexibility in work-life doesn’t mean only remote work or telework. Instead, it is more than this. This can mean that an employee has to work a fixed number of hours in a day, but it depends on the employee, part-time schedule, workweek, etc. Organizations had to shift their employees in the Work from the Home mod in the pandemic, where flexibility is necessary.
Organizations have experienced more profitable business when they reduce employee turnover. To make employee turnover more efficient and reliable, HR professionals, higher authorities, decision-makers, etc. The organization must empathize with the employees in every aspect.