It’s not all about pay! What should you be looking at to reduce employee turnover and increase retention? Here are some tips that can assist you in reducing employee turnover.
1. Audit your turnover rate: Assess your rate of turnover in a calendar year. This will provide valuable insight into trends and pitfalls associated with employment in your business. This will also allow you to calculate your average employment cycle.
2. Identify who is resigning: It is imperative that you identify who is actually resigning. Are these top performers? Is turnover consistent across all departments? Is there a consistent timeline for resignations? Are these employees in poor standing prior to resignation? Identifying who is resigning will allow you to identify root causes of turnover.
3. Analyze root causes of turnover: The most important aspect of reducing turnover is understanding its root cause. After identifying who is resigning, you can now understand which issues arise at each point in employment. For example, if you notice that turnover is very high in a specific department, then perhaps you can analyze the management structure within that department. Additionally, if you notice a consistent pattern where many employees are in poor standing prior to resignation (or even termination), then you may want to reevaluate the professional development in your business, such as approaches to training and coaching. Or if you notice that many employees exit after one or two years, you may want to evaluate your growth/promotion opportunities. Most importantly, you want to identify trends in turnover.
4. Implement retention initiatives: Once you have determined which groups are experiencing high rates of turnover, implement retention initiatives that target the root causes. Conduct exit interviews to gather direct insight into what could have been done differently to retain your team. Fight the urge to simply give raises across the board—this is only a temporary fix. Instead, dig deeper to identify and analyze how resignations are impacted by factors such as promotions/growth opportunities, professional development, management structures and compensation packages. These insights will better support retention initiatives and assist with an improved employment management system.
No business is immune to turnover, especially regarding factors that are outside of your control. Reducing turnover that is within your control should be a major focus. Workforce data identifies and addresses trends in complex aspects of your business efficiency.
By being proactive in auditing and analyzing your organizational behaviors, you can implement systems and programs that truly increase retention and improve the overall lifecycle of your team.