The need to reduce staff turnover is something every HR manager has to deal with at some point in their career, and let’s be honest, it’s no fun at all.
It’s a lot like trying to figure out why people keep breaking up with you, except there’s less ice cream and Bridget Jones marathons, and more recruitment expenses and pressure from C-suite.
Employee churn is bad for business. It costs a lot of money, has a negative impact on your employer brand, and also straight-up affects your company’s bottom line because departing employees lead to poor customer service when things fall through the cracks. In short, it’s not a vibe.
According to the Work Institute 2019 Retention Report, which contains insights from 250 000+ employee interviews, more than three in every four employees who sought out greener pastures could have been retained by their employers. In the US alone, voluntary turnover costs now exceed $600 billion, which negatively impacts the economy because employers have to compensate for it by increasing the prices of their goods and services, and the government has to absorb it by raising taxes.
According to this study, the main reasons cited for preventable employee turnover included career development, a lack of work-life balance, unsupportive manager behaviour, inadequate compensation and benefits, and an unhappy work environment. The same thing applies in South Africa, where we continue to slip and slide down the Global Talent Competitiveness Index (GTCI).
In fact, in terms of overall ranking, South Africa now falls near the middle, in the lower half, placing 70th out of 132 countries measured in the report. Suffice it to say, if you want to hang on to your star players, you need to have a few aces up your sleeve.
Here are 5 effective strategies for reducing staff turnover in the coming year
1. Evaluate your recruitment process
Start by asking yourself if you are employing the right kind of people. Hiring for cultural fit is very important if you want to keep people around. After all, there are certain aspects of a business environment that are inherent to its industry. For instance, an advertising agency is always going to be busy and fast-paced, and an auditing firm is always going to be somewhat serious.
These days, there are great AI and ML tools available that allow employers to measure and compare various candidates in a very objective way. However, even if you don’t want to invest in recruitment platforms like these, it pays to consider whether a person’s personality and culture preferences are suitable to your environment rather than employing them based on their skills and experience alone.
Read more: Your quick guide to understanding the evolving HR tech ecosystem
Check out our YouTube channel for great content on everything from drawing up a recognition blueprint for your business, to leadership and management responsibility for effective employee engagement.
2. Check your onboarding approach
How are your new recruits greeted at the proverbial door? Do they walk into a regular, bustling workday with no-one to show them the ropes, awkwardly standing around at reception until someone realises they need to be shown to an empty desk without any idea of where they need to be or who they need to speak to?
Or are they fully prepared by a pre-arrival email, having already signed all the necessary forms and paperwork so they can spend their first day being introduced to their co-workers, meeting with their supervisor and settling into their work station, which was already set up and ready to go when they arrived?
Do not underestimate the importance of onboarding. Statistics show that 20% of voluntary turnover occurs within less than 50 days, and just shy of 70% of respondents indicate that they would be likely to stay at a company for at least three years if they had a positive onboarding experience.
3. Recognise and reward employee achievements
Regular, ongoing, timely employee recognition can transform company culture. Are you showing your top performers that their contribution to your business is valued? Do you validate their efforts by thanking them timeously, and where their peers can see? A lack of recognition is one of the main reasons why people leave places of employment, and rightly so. After all, it’s only good manners to say thank you!
4. Provide regular feedback
Regular performance reviews and feedback sessions are a great way to keep your finger on the pulse of how your workforce is doing. After all, these meetings should be a two-way street in which employees are able to discuss their needs in the workplace and whether they require any additional support, tools or training to do their jobs to the best of their ability.
While yearly reviews are all good and well, providing feedback on a more regular basis allows for on-the-fly trajectory improvements and better communication overall. These reviews don’t always have to be in a formal setting, even a short, monthly meeting to discuss managing expectations and employee performance can make all the difference.
Read more: 360 Performance review template and how to use it
5. Stay in touch with your alumni
It may seem strange to be talking about alumni when we’re actually discussing employee retention, but the two actually go hand in hand when you think about it.
Huge global companies like P&G, HSBC, Accenture, McKinsey and Coca-Cola all have vast, bustling alumni platforms that keep their ex-employees connected with the company, and one another. These networks offer many different advantages to both the business and their ex-employees, which includes boomerang hires, fruitful consultancy collaborations, as well as fantastic talent referrals.
By creating an alumni platform that keeps your ex-employees in the fold beyond their exit interview, you also have access to honest feedback from a group of people who worked for you previously, which means they understand your culture, but can speak freely because they are no longer part of it. This is an invaluable way to find out where your retention problems lie…
Following these guidelines will help to reduce staff turnover in the year ahead. Implement these strategies one at a time and see what a difference it makes. Check back soon for more insider info on keeping things on an even keel in the HR department.
In the meantime, check out our YouTube channel for great video content on everything from drawing up a recognition blueprint for your business, to leadership and management responsibility for effective employee engagement.