High employee turnover rates are a bad sign. Something is obviously wrong if your business is constantly losing its employees.
Besides your company’s reputation, there are many hidden consequences that result from having a high turnover rate. This infographic by CMOE sheds some light on 17 staggering statistics that will have you re-thinking your employee retention strategies.
A study conducted by the Society for Human Resources Management found that when an employee is fired, the employer may need to spend up to nine months, equivalent to that employee’s salary, on hiring someone new. This includes the full hiring and training process.
Consider this: if you do hire someone new, it could be months (even years) before the new hire achieves the same results and efficiency as the former employee. If you are a business owner, can you really afford to waste this kind of money? If you answered no, (who wouldn’t) then look at these three tips on how to cut down on your employee turnover rate.
Consider the Cost. When thinking about firing an employee, consider this; is it going to be worth it. Of course, there will be situations where firing is the only choice, and the right one (sexual harassment, laziness, etc.). But if it’s something else, try and work it out with the employee. Maybe there hasn’t been clear communication or expectations. Whatever it may be, talk it out and decide for yourself if firing is the best option.
Adjust Company Culture. If employees are leaving on their own, the company culture must be tweaked. People need to feel valued and trusted at their place of work. According to a survey by BambooHR, 82 percent of employees don’t believe that they are recognized for their contributions at work as often as they should be. If this is the case at your business, employees won’t hesitate to leave and find a workplace that will value them. If you notice a trend in employees leaving, open a dialogue and accept feedback. Take the advice and make a change.
Be Patient. Losing employees is part of running a business. When you need to hire someone to fill the position, be patient. The Harvard Business Review has said that employee turnover rates are related to bad hiring decisions 80% of the time. Take the necessary time to interview and find the correct candidate to ensure they stay with the company.