Reduce Your Employee Turnover Rate With This Advice
All businesses and establishments will have an employee turnover rate. If you aren’t aware, this refers to the rate at which you’re replacing old employees with new ones. There are loads of reasons you may need to do this – perhaps you had to fire someone, maybe someone left, or they could have been promoted leaving their old job open.
Generally speaking, the lower the turnover rate, the better it is for your business.
High turnover can indicate many things, but it usually comes in as a costly business expense. Think about it, hiring numerous employees throughout the year is a very expensive thing to do. You may have to pay severance packages to fired employees, you have to cover the costs of advertising the jobs again, and the whole hiring process can be costly. When you keep doing this over and over again, it will drain your company.
Therefore, the focus needs to be on reducing your employee turnover rate.
I’ve produced some advice that will definitely help you do this, so, read on to find out more:
Improve the recruitment process
It goes without saying that firing employees are probably the number one cause of your high turnover rate. If you’re always letting people go, then you’ll constantly have to fill their shoes. No business should ever really have to fire someone. Firing someone indicates that they’ve either done something incredibly wrong, or they just can’t get to grips with life in your workplace.
Now, you may think this could be a common problem to have, but it shouldn’t be. If you hired the right people to begin with, then this won’t be an issue. As such, work on improving your recruitment process to get the best candidates in your job interviews and help you hire the best people for the job.
There are so many things you can do to sure up your hiring process. The most popular idea is to include some type of situational judgement tests to see how people react when put in similar scenarios that they face at work. I even read a recruitment blog recently that spoke about optimizing job listings on Google to ensure the best candidates find you. Do what you can to tighten up your recruitment, and you’ll soon hire people that fit the roles better, and won’t need to be fired.
Provide good benefits for your employees
Another common reason behind a high turnover rate is that too many of your team leave your company of their own accord. A critical reason for them doing this is that they don’t feel cared for or valued. As a result, they want to move to a different company that will care for them and make them feel appropriately appreciated.
To address this, you need to focus on the benefits you give your employees. Every business should have a benefits package to give to their team members. The things you include in this will ultimately determine whether or not people think it’s worth staying at your company for the long-term or using you as a stepping stone to other jobs.
How can you improve your benefits? It’s simple, think about key things that people view as the most valuable to them. For many, this means having a good pension scheme in place, having some type of insurance cover, being given flexible working hours, and so on. If your benefits package has elements of these things, then there’s no need for someone to move on as you’re giving them a lot.
Create a good work environment
This last tip builds on this idea of employees wanting to leave your business for one reason or another. Even if your benefits package is excellent – and they feel valued – they could still be forced to move on. Why? Well, in scenarios like this, it usually comes down to the work environment and the conditions they’re forced to work in.
Let’s be honest, no one likes going to work when they’re unhappy with the environment there. You could have a toxic workplace where no one really gets along, and everyone works in silence without any banter or joking around. Or, you could have a place that’s very uncomfortable to work in because there’s too much noise, the chairs are horrible, and the computers are just awful.
So, to fix this, you must create a pleasant work environment. Build a workplace that people enjoy being in and you will soon see your turnover rate decrease!
Keeping employee turnover rates as low as can be is essential. This advice will help you achieve this, saving your business loads of money while creating a better team at the same time.
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