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Experts predict employee turnover rates will rise by 20% in the coming years. A volatile economy means that it's more important than ever to learn how to minimize employee turnover. Following a sound recruitment strategy and monitoring current employees are both effective solutions to this common problem.
HOW TO MINIMIZE EMPLOYEE TURNOVER IN 5 STEPS
Employee turnover is more than simply a hassle. It negatively affects employee morale, workflow and many other aspects of your company. Here are five ways to lower employee turnover rates.
- Analyze Your Company's Employee Turnover
To tackle a turnover problem, you must first understand it. Calculate your precise employee turnover rate to get started.
First, determine your average number of employees for the year. This is the number of employees at the end of the year added to the number of employees at the beginning of the year, with the sum divided by two. Divide your new average employee number by your number of current employees, multiply by 100, and you'll arrive at your employee turnover rate.
Compare this rate to standard rates in your industry. Retail, warehouse, call centers and other such environments will naturally have higher turnover rates than office environments.
Finally, determine if new hires, seasoned employees, or both are leaving their positions. If you want to know how to minimize employee turnover, you will need to understand what strategies will work best for each group.
- Be Honest and Thorough When Screening Applicants
New hire turnover may be due to a gap between the job's description and its reality. Don't try to increase your applicant pool by stretching the truth in job postings. Be realistic and forthright about salary and the prospect of working from home.
Take care when relying on automation to filter applications. Misuse of keywords can cause your business to lose out on qualified applicants who may be a good fit. Blend hands-on strategies and technology in all stages of the screening process.
- Hire a Recruitment Agency
If you've looked over your screening practices but still struggle to retain new hires, contact a professional recruitment agency. A staffing agency has insider knowledge of the job market for your business. At TSP, we understand how to minimize employee turnover at the recruitment stage.
- Appreciate and Reward Current Employees
Employee turnover of seasoned employees may come down to simple appreciation and reward structures. Ensure you're staying current on salary and benefits for long-term employees.
- Evaluate Supervisors
High employee turnover rates could stem from deeper problems in management. Current research on business leadership shows that 57% of employees have quit a job because of their immediate supervisor. Ensure management techniques are up to date and mesh well with the employee culture.
MORE TIPS ON HOW TO MINIMIZE EMPLOYEE TURNOVER
Staffing is the cornerstone of any successful business, but it can be difficult to recruit and hire quality employees while managing other aspects of your company. At TSP, we know how to minimize employee turnover and provide staffing solutions for businesses of all sizes. Contact us to begin building a customized staffing plan.