Having and running your own business means that you have to efficiently and effectively manage your employees as well. Without them, you will surely fail to achieve all your target business goals, earn any profits or any returns on your investments.
And in the course of having and running your business, you will certainly experience losing some of your employees whom you have trained hard to become very competent and effective in their jobs from time to time. As such, as a business owner, another problem that you will constantly have to face and deal with is employee turnover.
But what are the usual factors that contribute to a company having a high incidence of employee turnover?
One of the most common factors that contribute greatly to employee turnover in a company is the compensation and incentive packages you have for your employees. For almost all employees, their prime motivation for waking up early in the morning to go to work every day is the salary and other monetary and non-monetized rewards that they expect to receive at the end of each month. And when your employees are not satisfied with their monthly compensation package, they will find another employer who can offer them a higher or more attractive pay structure and other impressive perks.
Another reason that employees usually leave their current company is that the employer may not be giving them opportunities to learn more, advance and fully realize their skills and talents. Many employees fear experiencing or suffering from boredom and stagnation. When you are not providing your staff opportunities to learn a new skill, share their talents to their co-workers and a chance for them to gain career advancement, they will move to another company that is well-known for doing or providing the same.
How you relate to and deal with your employees can also affect the level of employee turnover in your company. One of the most popular reasons why employees quit from a certain company is their poor relationship with their boss. As such, you also need to always treat your staff with respect and always have an open line of communication with them so that you have a healthy professional relationship with them.
Lastly, the relationship of all your employees with their co-workers will also be a contributing factor in their decision to stay with or leave your company. If your company is a storehouse of office gossip mongers, bullies and lazy workers, many of your employees will certainly get disheartened and lose interest in working for you.
Tips to reduce employee turnover
It is the one thing that can hurt a human resource manager’s number the most. High turnover occurs for many reasons. When you have employee turnover figures that are not where they should be, it means you are losing potentially good employees for other companies, training staff not doing well enough, or you have bad hiring practices in place. In most cases, it is a combination of all three of these things that can hinder a business. The good news is you can reduce employee turnover. To do so, engage employees.
Engage Employees Prior to Hiring
One of the first things to change about your hiring process is how you talk to your potential job applicants. You may want to put in place longer, more detailed job interviews. The hiring process is a critical component because you need to bring in people that not only have the job skills and requirements you need, but also have the ability to mesh with your existing staff members. Do they fit the company culture in your organization? To find out, talk to them longer and get an idea of who they really are.
Engage Employees During Training
The training profess is another area where you need to improve communications to reduce employee turnover. To do so, you need to schedule a follow up meeting with the new hire on their first day, perhaps during a lunch break. Then, spend some time with them at the end of the week, reviewing what they learned, tackling problems that have arisen now. It can also be very helpful to improve communications by using a mentor to guide the new hire.
Engage Employees Before They Leave
There are two key things to do here to improve communications, so you can reduce employee turnover. First, when a problem arises on the floor, the manager or human resource management team needs to react to it RIGHT THEN, not later. Find out what the problem is and solve it. This means talking to the staff. Secondly, when employees are leaving, find out why they are leaving. This provides you with an opportunity to find out what the competition is offering that is more attractive.
The bottom line is that the human resource manager needs to properly engage employees throughout the management process. The more you communicate with your staff, the more likely you will have the type of staff you need. To reduce employee turnover, it is critical for you to focus on the opportunities presented and make changes to your management process.
When you have a high rate of employee turnover in your company, you need to take the necessary steps to prevent this from increasing. And in case you are having a hard time pinpointing the specific factors contributing to your company’s employee turnover rate, you can always get help from firms that specialize in providing various HR services and other business solutions.