Employee turnover is a measure of the rate at which employees leave a company over a given period of time and how often employees leave a business. It is usually measured on a monthly, quarterly and annual basis.
Turnover rates cover voluntary and involuntary departures. Employees leave their current jobs to secure retirement, higher pay and better terms, opportunities to progress in their careers, a good work-life balance. These needs are assessed under the company culture, which includes a company’s values, career opportunities, compensation and vested rights, work-life balance and the impact of senior leadership.
It is important to consider your sector when evaluating whether your company’s employee turnover rate is high or low in order to get the right result. For instance, hotels and call center companies have a much higher employee turnover rate compared to many sectors. If you’re experiencing an above-average employee turnover rate for your industry, it may be time to make changes.
Trust in company management is sometimes questionable when large numbers of employees leave the company in a short period of time. It can also make it difficult to recruit and retain talent. The way to retain your best employees is to learn what your employee turnover rate is, identify what’s causing it, and implement these key strategies.
To calculate your employee turnover rate, you need three figures: the number of employees leaving (voluntarily and involuntarily) in a given time period, the number of employees at the beginning of that time period, and the number of employees at the end of that time period.
{Number of People Leaving in the Month/( Number of Employees at the Beginning of the Month + Number of Employees at the End of the Month) /2
Reducing employee turnover, recruiting and retaining is one of the biggest challenges faced by the human resources. Some employee turnover is normal, but it will be very costly for these rates to increase. Therefore, reducing your employee turnover rate also allows you to reduce the costs associated with labor, training, hiring and other HR functions.
What kind of strategy is needed to reduce Employee Turnover?
- Look closely at why employees have quit in the last few years. Privacy-guaranteed surveys are a good way to ensure you get honest Focus specifically on the high-performance employees whose departure costs you the most. Think about what you can do to encourage them to stay.
- Inaccurate recruitment is the main reason for high turnover. Together with the right recruitment, it is important to create a positive corporate culture that will allow employees to continue for a long The focus should be on finding candidates with creativity, problem solving, persuasion, adaptability and emotional intelligence.
- Make new recruits feel wanted and valued from day one. You can do this by appointing a mentor or friend, providing a suitable workspace and providing adequate
- Unhappy employees turn into people who are overly critical, often blaming others, gossiping, undermining colleagues and thinking only of If we go by the saying “A stitch in time saves nine”, be firm about dismissal.
- Provide employees with a fair wage for the work they do and offer them a competitive salary and benefits.
- Having an open communication is an easy way to find out about your employees’ problems or concerns long before the problems become It’s also a great way to give feedback.
- Listen to what your team wants and needs, act accordingly and offer career advancement opportunities with a clear and defined career path for employees.
- Bringing people together in your organization deepens social connections, creates a culture that makes them feel a sense of Develop an employee recognition program that embraces community celebrations and events in life. “Social recognition is an investment with measurable returns: it provides increased engagement, productivity, quality and profitability.
- You can also increase their sense of belonging and loyalty by presenting your employees with a strong vision and goals for what they do.
- Witnessing colleagues being thanked in front of everyone makes employees feel more These employees feel more respected in the workplace, are more inclined to evaluate their managers with a positive manner, and experience less burnout and stress.
- Analyzing the main reasons for dismissal as well as turnover tendencies and demographic information (turnover analysis by age, ethnicity, gender, ) will reveal the reasons why turnover rates are high.