From compensation to workplace culture, most employee turnover is preventable. In this article, you’ll learn common causes for employee turnover, its impact on your business, and how to fix it.
According to Monster, the UK’s average staff turnover rate is approximately 15% yearly. This percentage might not represent your industry, but you could use it as a rough guide to see whether your workforce turnover is above or below average.
In today’s competitive job market, employee retention is one of the most pressing issues businesses face. By 2023, voluntary employee turnover is expected to rise to nearly 30%. As such, it’s more important than ever for organisations of all sizes to have a strong employee retention plan.
In episode 5 of Insider Knowledge, we spoke with Zoe Cunnington, Head of Talent Acquisition for Informa Tech & Global Support. Zoe has an impressive background, having worked in recruitment, agency side, to now as Head of Talent Acquisition for Informa. She explains to really stand out from the crowd, businesses need to speak directly to candidates in a way that appeals to their aspirations and intrinsic motivations. With the skills deficit in specific job markets, companies have to work harder to attract employees.
A large salary isn’t enough anymore. Instead, a strong employer brand – one that reflects a positive culture – is equally as important. She also explains that having an effective, engaging and inclusive job description is critical. It should outline your organisational values, trust, and mission and provide an accurate, interesting account of the skills and competencies required for the role. A good job description should provide clarity for the individual and the manager, so it’s essential to get it right.
A recruitment pipeline, also known as a talent pool, is a proactive approach to hiring. It’s a process of attracting a pool of possible candidates for hard-to-fill roles or positions with high turnover. It involves building a brand as an attractive workplace, finding passive candidates and staying in touch with applicants. Identify specific teams, roles or types of positions that may need an extra boost and focus efforts. For example, you may need to zero in on your marketing team recruitment and retention and strengthen that specific hiring pipeline.
A heavy workload can lead to employees feeling stressed and experiencing burnout at work. Pressure to meet deadlines might not always be feasible for employees, but if managers fail to understand this, employees may feel overwhelmed and leave for the sake of their mental health.
The goal here is to create an encouraging, positive work environment. Employees are more likely to stay when they feel respected, acknowledged, desired, and motivated. Best of all, this method to decrease employee turnover is free. You have to use your words.
But being unhappy in a job is not the only reason why people leave one employer for another. If the skills that they possess are in demand, they may be lured away by higher pay, better benefits, or better job growth potential. While you can’t control what’s happening with other companies, how much they pay, or which benefits they offer, you can take steps to improve the morale of your business and make those employees who are with you happy and productive. That’s why it’s important to know and recognize the difference between employees who leave because they are unhappy and those who leave for other reasons.
As the world grows more digital, remote and flexible work, becomes more viable—and desirable—options. Allowing your team to set their work hours or remotely could boost retention.
Once businesses identify the right candidates, getting them to sign on can prove costly and time-consuming. It’s taking longer to hire people, and most organisations have increased pay for salaried roles, while half of the others have increased starting pay for hourly roles. These rising costs offer all the more incentive to cut down on turnover.
Companies should start by offering an appropriate starting salary that will attract qualified and talented candidates. They should also offer regular raises and monitor what other companies pay for similar roles, especially when it comes to hard-to-fill jobs.
You can optimise your hiring strategy all you want however, If you don’t offer people a competitive package, you won’t be able to hire – or keep – them. That doesn’t necessarily mean you have to pay the highest salary. It does mean, however, offering competitive pay and attractive additional types of employee benefits.
It takes a lot of time and effort to find the right people for your business and this is particularly apparent when hiring for a small or medium-sized business – Because, essentially, hiring the wrong person will potentially have more of a negative impact on the team in a smaller business. You have the advertising costs, the time taken to sift through CVs and carry out interviews and then the time spent on induction and training.
And so, taking this all into consideration, you should be doing everything within your power to reduce employee turnover.
Contact Bealge Talent today and let us help.
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