The Great Retention: Turnover and Tips on how to Avoid it
You've probably heard the 2022 buzzword phrases: "The Great Resignation," "The Great Re-evaluation," and "Quiet Quitting."
Objectively, the influx of employees choosing to re-revaluate themselves personally and professionally is a great push toward the overall evolution of companies' internal practices and employee wellness standards.
However, as progressive as it may be to the 'big picture,' all of these thematic events are leading to one thing: Turnover.
Employee retention is one of the most significant issues companies face today, but the associated costs may be even higher than you'd realized.
What's the difference between Turnover and Retention?
Well, they're essentially opposites. Retention is the percentage of employees who remain (or are "retained") at an organization within a given timeframe. Adversely, Turnover is the percentage of employees who leave (or are exited) within a given timeframe.
While the phrase "Employee Retention" has a precise definition, it's also one that's become synonymous with an employer's efforts to keep their employees happy and engaged.
You might think that a hiring manager could find a qualified replacement at relatively equal pay and get back to business as usual... But the reality is, the cost of replacing employees is high. It costs an employer an average of 33% of an employee's annual salary to manage their exit.
It costs an employer an average of 33% of an employee's annual salary to manage their exit. How can that be?
Finding the best talent typically involves costs associated with advertising, job posting, candidate screening, skills assessments, and most unavoidably: time. The time that goes into the hiring process is extensive and only sometimes pays off, not to mention the time lost by not being able to fulfill your own duties. You might find the perfect candidate on your 1st interview or your 21st; there's just no way of knowing. The cost of a "bad" hire is even steeper when you consider that you have to start back at square one after already making the investments mentioned above.
So how can we avoid these costly departures and exits? First, a retention strategy is essential and will ultimately save your organization time and money. Here are six helpful tips to help you build the best approach.
Get it right the first time
The first way to avoid unnecessary hiring and re-hiring costs is to ensure that you've hired the 'right' talent the first time. The cost of a bad hire is even more detrimental when considering that you'll have to start back at square one. Partnering with a recruitment or consulting firm may seem costly on the front end, but these specialized teams often have access to highly skilled job seekers who aren't actively on the market. Outsourcing your recruitment tasks also means that you can remain focused on your duties and keep work from piling up.
Assess your Onboarding Processes
While an interview might be the first impression a candidate gets of your company, their onboarding experience will communicate to them how their new workplace operates and the level of interest and care you have for them joining your team. Plan ahead, set expectations, and try to make the process as streamlined as possible.
Invest in Management Training
A common phrase in the employment industry is "Employees leave managers, not companies." You've likely heard first-hand stories of employees quitting because they had a bad relationship with their manager. Teaching your managers how to manage stress, conflict and crisis management, as well as navigating different personality types, can help get ahead of those types of scenarios.
Recognition and Appreciation
If you have no practices surrounding recognition or appreciation, you're at risk of your employees feeling unappreciated and possibly even developing resentment toward the organization and its leaders.
That means putting effort and emphasis toward making them feel valued and included, and that they have the opportunity to grow professionally.
Celebrate their milestones, highlight their achievements, and show genuine appreciation for their contributions.
Cultivate your Company Culture
Culture plays one of the most critical roles in employee retention and can be different for all companies. First, determine your company's values and communicate them to your teams by exhibiting them rather than dictating them. Who do you want to be as an organization? Are you inclusive? Big on community outreach? Highly professional? Laid back? Don't just Say it, Be it!
Convey Genuine Care
We’ve all had a manager who pressured us to come in when we were visibly ill, who showed imbalanced treatment of their staff, who didn’t have any interest in the general wellness of their people, and Who flat-out didn’t care.
Showing that you genuinely care for your employees well-being is probably the best solution to building mutually beneficial relationships and ensuring that they want to stick around. If you care about them, they’ll care about your company.
In summation, it’s safe to say that there's no magic solution to employee resolving turnover, but knowing that avoiding it is relatively within your control is the first step to successful employee retention!