Especially when the economy is unstable, you may feel as though workers are constantly coming and going. And, of course, hiring and retraining can become expensive. Nevertheless, this doesn’t need to be the status quo. Here’s what your organization can do to decrease and deal with rapid employee turnover rates.
Run the Numbers
Maybe your turnover rate seems uncomfortably high. Or maybe you think it isn’t that bad. But do you KNOW what the exact number is? If you haven’t already, use this guide to determine your turnover rate. Then, calculate the approximate cost of losing a worker. Expenses may include additional overtime for those covering for the missing employee, recruiting costs, onboarding costs, training costs, or lost productivity while new hires adjust to their job. (SHRM, 2012) Once you’ve clearly defined the rate and the cost of turnover, you’ll have a better understanding of the severity of the problem. Also, remember, healthy turnover ranges from industry to industry. So, what one company considers to be high may be average for another organization.
Reconsider Your Hiring Process
One of the top causes of rapid turnover is poor hiring. After all, if you bring the wrong people into your organization, chances are they aren’t going to stick around for long. If your company hasn’t reviewed your hiring process in years, you may be due for an overhaul. Obviously, this requires time and resources, but the results could be well worth the effort. For more ideas on how to effectively “select the right people who can do the right things,” check out this video from Scott Wintrip.
Treat Your People Well
If your employees work in miserable conditions with low pay and few benefits, not surprisingly, they are going to look elsewhere. You may not be able to offer the highest compensation rates in the country. However, you should pay people what they are worth and show your employees you care. In addition, recognize the power of non-monetary benefits. Many workers are willing to accept a smaller paycheck in exchange for perks like flex time, remote working options, or strong company culture.
Identify the Causes of Turnover
Sometimes, despite your best efforts, turnover rates may remain high. Therefore, it’s important to pinpoint the ongoing causes. Why DO employees choose to leave? Some reasons, like retirement or relocation, are unavoidable, while others, like poor work-life balance may be fixable. Although hearing the words, “I quit,” is rarely pleasant, American billionaire Ray Dalio argues losing an employee provides “an important learning opportunity.” For example, if several of your workers have left to join one of your competitors, you’ll want to look into that firm’s culture, development programs, compensation, and benefits to figure out what they’re offering that you don’t. (Harvard Business Review, 2019)
Is Your Company Hoping to Decrease Rapid Employee Turnover Rates with Better Hiring Practices?
At FirstStaff, we can help your organization find the right employees the first time. Our recruiters place professional, light industrial, and administrative/office workers throughout Arkansas and western Texas. Learn more about the advantages of hiring through FirstStaff today!