High employee turnover - how to deal with it?

Service Business

Employee rotation is related to two phenomena. On the one hand, we are dealing with making planned changes to specific workplaces by selected employees. Employed people are given new duties and tasks to be performed, they deal with something completely different than before. On the other hand, employee rotation is associated with the departure of employees to other enterprises. If the number of departures is moderate, the entrepreneur is able to cope with the recruitment of new employees or training them for work. Business processes can be carried out in the company without major disruptions. However, an excessively high employee turnover rate may have a negative impact on the functioning of the enterprise, as it contributes to an increase in costs, knowledge leakage and the need for continuous implementation of new hires. How to deal with high employee turnover? How to prevent it?

Employee rotation - indicator

The employer can choose from several formulas to calculate employee turnover in his company. The simplest and most popular indicator of this phenomenon is the quotient of the number of people who left in a given period and the number of employees currently employed in a given company.

It is extremely difficult to precisely define the limit which would be exceeded with the problem of high employee turnover in a given organization. Depending on the industry and the size of the company, the indicators are completely different. According to the Information Techno - Turnover Report, the rotation of IT employees employed in particular sectors in 2011 was as follows:

  • logistics - 12.5%,
  • specialist services - 9.9%,
  • healthcare - 5.6%
  • production - 4.3%,
  • pharmacy - 4.1%.

The employee turnover rate can be considered high if the departure of employees begins to have a noticeable negative impact on the functioning of the enterprise. Increase in costs, the need to constantly carry out time-consuming recruitment processes or a decrease in the quality of services provided are warning signs that indicate paying attention to such an important phenomenon as employee rotation.

Reasons for high employee turnover

The most common reasons for changing employer are:

  • an argument with the immediate supervisor,
  • disrespect for the employee,
  • company's policy,
  • end of the period for which the contract was concluded,
  • a competitive job offer indicating the possibility of promotion, better earnings, more convenient access, the possibility of increasing independence, changing the scope of tasks performed,
  • argument with the client,
  • employer's bad reputation,
  • stress at work.

Ways of high employee turnover

In order to be able to effectively select remedies for high employee turnover in a given company, it is necessary to understand the cause of this phenomenon. It may turn out that employees leave us because the company does not run a canteen and there are no restaurants or bars near the office building. Hungry workers are ineffective and dissatisfied, so they are looking for a better job. Therefore, you should carefully consider what the problem is and solve it.

Important!

Reducing the number of departures depends on knowing the cause. Do not use universal solutions for high employee turnover, because it may not work for you.

 

There are also universal ways to combat high employee turnover. They can be implemented preventively in order to minimize the likelihood of the problem of mass departures from the organization in the future.

  • Streamline the recruitment process - consider whether, when hiring new employees, you are guided by the current staffing needs or if you are also thinking about the future. Pay attention to the candidate's potential. Will the employed person work for a different position?
  • Talk to employees - keep in touch with them. Don't tell them all the secrets of your company, but share what is relevant to your current business. Lack of information becomes a place for speculation. Missing words can have a negative effect on the working climate.
  • Not only talk, but also listen - periodically conduct surveys that will allow you to get to know the opinion of employees about the working climate, its conditions, and emerging problems. If you pay attention to what your employees say, you may be able to spot the reasons for the upcoming employee turnover in advance.
  • Motivate to work - check the wages on the labor market. Do you reward your employees sufficiently, or maybe you pay them too little? Try to introduce non-wage motivational factors - the so-called golden shackles that will tie the employee to your organization. Take advantage of the benefit systems, create a kindergarten next to the office, develop a unique training system, co-financing holidays for high results.
  • Take care of the atmosphere - contrary to appearances, people pay attention to the working atmosphere. Nobody wants to work under constant stress, hostility and aggression. Make the work team harmonious and make the employees respect and tolerate each other. Organize integration trips.