While turnover is a natural consequence of having employees, many of our clients are frustrated by what they consider to be excessive turnover. As we addressed in our previous article, "Cost of employee turnover," there is no question that turnover costs companies a significant amount of time and money, cutting into resources and profits. So how can you determine whether your turnover rate is consistent with natural attrition or whether it is excessive and needing to be addressed? There are plenty of resources that provide current hiring and separation information, including the Bureau of Labor Statistics. The reality is, if you are losing talent to other companies, or if it feels like you are consistently hiring for positions at times when the company is not expanding, you probably have some work to do.
Let’s start by addressing why employees leave jobs. Some employees leave for reasons not related to things an employer can change. But many people leave their jobs because they don’t feel appreciated or valued, don’t see a future with the company, or because they don’t really feel like there’s a compelling reason to stay — which means that they are generally open to taking a new position at any time. These are the people that you can impact—but how?
It’s easy. Engage them. Make them feel appreciated and valued. Provide them with a vision of the company’s future and the potential opportunities within. Give them reasons to stay. While I agree that this is much easier said than done, recognizing that engagement is critical to employee retention is a step in the right direction.
Your solutions will obviously be dependent upon the specific issues your company is experiencing, but here are some general areas of consideration to get the wheels turning:
Hannah advises employers on leave policies, discrimination, harassment, accommodations, wage and hour obligations and any other issues that may arise in the workplace.
Hannah advises employers on leave policies, discrimination, harassment, accommodations, wage and hour obligations and any other issues that may arise in the workplace. In addition to providing practical solutions to employment law matters, Hannah has extensive private practice experience. Her focus included early intervention advice and solutions to employers, as well as representing them in the defense of administrative claims. She now works on a team dedicated to providing solutions for employment law and compliance matters for employers of all sizes. Hannah graduated from William Mitchell College of Law, after receiving a Bachelor of Arts degree from Winona State University.
A recent survey by the Society for Human Resources Management (SHRM) reported 94% of leaders feel employee engagement is an important or very important workforce challenge. An engaged workforce increases operational income by over 19%, while a disengaged workforce can drain over 34% of an organizations’ operational income. Additional risks of low engagement can be seen in increased turnover, low customer satisfaction ratings and even increased employment litigation.
Employee retention continues to be a top concern for employers, even more so than last year, according to a PayScale survey of more than 4,000 executives and human resources professionals.
In 2014, a staggering 59% of employers were more concerned about retaining talent than anything else. Five years ago, only half of those employers thought retention was their number one concern.
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