Managing Employee Turnover
Employee turnover is a huge concern in certain industries and is one of the main reasons for causing sleepless nights for managers. Turnover is simply the superficial problem and the crux of the problem is much deeper. What really needs to be studied and analyzed is the reason behind the high turnover rate of an organization. There can be various reasons that may induce employees to switch jobs: lucrative offers by other companies, long working hours and stress at work, inadequate training and development, lesser growth opportunities, to name a few.
Understanding Employee Turnover
A high turnover rate obviously has serious side effects like increased expenditure and effort on hiring and training as well greater risk of information leakage.
As we have already discussed, there can be several reasons for a high turnover rate; the most alarming ones being what are commonly called ‘dysfunctional turnovers’. These refer to cases wherein talented and hardworking employees decide to leave the organization.
For the HR department of any organization, reducing the dysfunctional turnover rate is one of their primary responsibilities.
Employee retention begins with understanding the turnover department wise, branch wise, hierarchy wise and also comparing your organizations turnover with that of industry averages and previous years. Having analyzed the numbers the next major challenge is to correctly understand what is causing employees to leave the organization. This could be done by the way of regular employee surveys, exit interviews, observation techniques, etc.
The causes discovered could be as varied as bad managers, low salaries, and inappropriate organizational culture, limited or little opportunities for growth, boredom and lack of particular skill sets. If a particular cause is the most frequent reason for employees calling it quits then it has to be looked into.
Turnover Management Strategies
In general good human resource policies can go a long way in keeping employees happy and satisfied. The following are believed to be some of the most effective strategies-
- The organization must always create motivators for task completion. People work best when there is tempting reward waiting for them at the finish line. Incentive based performance policies are therefore a great way to keep the employees engaged, interested and satisfied with the organization.
- The salaries and perks given to the employees must be at par with the industry standards. After all, financial growth is a huge incentive for any individual and dissatisfaction with salary is a huge reason for employee attrition.
- Boredom with work is also a major reason for a high dysfunctional turnover rate. It is therefore important for an organization to ensure employees do not feel stagnated in their roles. Regular training and development programs as well as monotony breaking techniques like corporate retreats, company get-togethers, inter department tournaments and competitions, etc, can go a long way in keeping employees engaged and motivated.
- Counselling and coaching at the right time can often prevent an employee from leaving an organization. Having a pro-active and accessible HR department is therefore necessary in order to control employee attrition.
- An imbalance between one’s work and personal life often leads to burn out. As important as hard work is, it is essential that employees do not ignore their personal lives completely in order to deliver at work. The HR department should therefore ensure that employees are encouraged to maintain a healthy work-life balance.
At the end of the day the employee turnover rate of an organization has a huge impact on its productivity and profits. Allocating the proper time and energy to review, access and improve upon corporate culture and employee success planning makes more sense and will ultimately lead to investing less time and money in prevention, rather than spending more in order to make up for it!