Employee turnover is on the rise, according to recent reports. High staff turnover can raise costs and lower earnings. Did you know that 1 out of every 4 employees leaves their job within a year?
If those numbers aren't frightening enough, a recent survey found that millions of workers are actively looking for new jobs, some of whom may be working for you...
Employees' Reasons for Leaving
According to recent research, the top three reasons employees leave their present employment are:
- Limited opportunities for advancement in your job
- Trying to find a new challenge
- Inadequate financial compensation
Poor management and poisonous work conditions, on the other hand, are some of the most crucial and largely unreported reasons that push employees away.
What is a realistic staff turnover rate in percent?
While employees will always come and go, a staff turnover rate of 10% to 15% is considered normal. This, however, will differ based on your industry and career.
What are the most typical perks provided by employers?
Some of the most popular perks granted by employers when it comes to employee retention are:
- Workplace Flexibility
- Ongoing education and training
- Opportunities for advancement in your career
So, what can your company do to keep people happy? We've put up a list of 6 retention methods that have been proved to work.
6 Proven Retention Techniques
While there is no harm in turning over a decent number of employees (in fact, it is advantageous), when adopting an employee retention strategy, the top talent should be the primary focus.
1. Communication and Culture:
Promoting a healthy workplace culture has long been a high concern on the business agenda. Companies that focus on this area see an increase in retention rates. As a result, the cultural fit should be a top priority in your hiring and recruitment process. This entails being able to articulate your company's culture, as well as your beliefs and principles. It's also critical to hire supervisors with strong communication and interpersonal abilities.
2. Possibilities for Growth:
More than half of companies (53%) do not provide any training and development programs, despite the fact that it is one of the top things employees want in order to advance their careers. With 47% of employees seeking to develop digital abilities, technology is high on the list of desired skills. If you intend to provide professional development training or financial support, you should establish policies to guarantee that expectations are managed and that a return-on-investment is realized.
3. Reward and Acknowledgement:
According to the Hays Salary Survey for FY18, 14% of employers did not increase compensation at all, while 60% boosted salaries by less than 3%. As a result, it's no surprise that one of the biggest reasons employees leave is a lack of financial compensation. A competitive wage will aid in the recruitment of top employees. Recognizing and applauding employees for a job well done has been shown to improve staff morale. A raise in pay or an incentive bonus will also help you retain your top workers.
4. Work from home or on flexible hours:
As part of the National Employment Standards, certain employees have the right to seek flexible working arrangements. However, 60% of employees responded that having the ability to work from home was the most essential factor to them. It's important putting in place a policy to enable remote work if there are parts of the job that can be done that way. Working from home can enhance work-life balance, save money for the firm, and reduce employee travel expenses. Flexible working arrangements enable employees to fit work around their busy family schedules, avoid peak-hour travel and regain control, all of which contribute to greater work-life balance and employee retention.
Businesses must adapt to satisfy the technology needs of Gen Y and Gen Z as they become the majority of today's workforce. Having effective HR technology was cited as one of the most important factors in keeping employees engaged in their jobs. Other key technological aspects include managing remote work, engaging training through e-learning, managing benefits, and boosting general communications.
Keeping employees informed about how the business is operating and offering feedback on how they are contributing to business objectives gives employees a better awareness of their impact on the company. It offers them a sense of purpose and encourages them to participate.
Try focusing on one or more of the 6 areas we've discussed and see if your staff turnover rates increase. This will be shown in the financial results!