The employee turnover rate says a lot about the success of a company. Matt Zajechowski, a team lead at Digital Third Coast, concluded that a good company has an employee turnover rate of at most thirty-one percent.
Additionally, a survey carried out by the Center for American Progress in 2012 demonstrates that the budget required for the recruitment of an employee is equivalent to one-fifth of the employee’s current salary. This amount includes the cost of advertising, interviewing, the phone bills, the amount of money spent on training, the productivity of the new worker as well as the cost involved in keeping the new employee satisfied.
Considering these numbers, it is in a company’s best interest to prevent employee turnover rate and increase its employee retention rate. While it is impossible for any organization to stop their employees from leaving, companies can reduce this number significantly by implementing employee benefits that can keep the employees happy.
Here are some ways in which you can reduce employee turnover and ensure that your top talent stays happy with your benefits outlook:
Pay market-competitive salaries
No matter what people might say, the monetary compensation is the primary motivation for countless employees. If you are not paying your employees the amount they deserve, they will never be satisfied. To avoid this, you can conduct a survey and analyze the packages that your competitors offer to employees in the same position.
Perfect the on-boarding process
They say first impressions are everything. The on-boarding process at your company should, therefore, be perfected. This is a crucial opportunity for you to welcome the new hire and make them feel like they belong in that workplace. The on-boarding process should include both executive-level employees, as well as upper management. There shouldn’t be a distance or a gap between people in the company as it reflects a negative impression of the workplace culture. To improve the on-boarding process, you can take the following initiatives:
- Communicate with new employees before and after they join the company
- Give them a tour of the office or facility
- Engage with the new employee
- Promote a culture of friendly interactions between employees
- Discuss the vision and values of the organization.
Provide opportunities for growth
Offering employees, the opportunity to grow within the company is extremely important. Your company should not have dead ends; rather, every employee should have an equal chance to advance in their careers. Most organizations lose great talent when they fail to appreciate the employees that they have. In the case of promotions, they consider profiles from external sources. As a result of this initiative, workers become de-motivated and resign to find better opportunities.
However, if you are running a business on a smaller scale, you may not be able to offer promotions to all members of the company. In such cases, growth opportunities can exclude monetary rewards. For instance, you can arrange programs for employees to take classes from managerial-level workers. This can help them improve their knowledge related to the field. You can even take care of some of the employees’ finances, such as their student loans (check out this student loan forgiveness directory, for guidance), in order to help them focus on growth.
Offer flexible timings
Companies that run with the traditional mindset of demanding their employees to sacrifice their personal life for the company have a high employee turnover rate. In the current market, job satisfaction is based on the number of benefits that an organization can offer its workers. For instance, your company can allow workers to work from home or to work three days a week. Research suggests that companies that offer flexible work hours do not only have a high retention rate, but their productivity levels are also elevated.
Additionally, if you offer flexible timings, you can cater to the employee market comprising of students with little to no experience. Young individuals are usually willing to work for less money; however, their productivity is higher. Young students are also impressionable and you can mold them to work in accordance to the way your organization operates. This is harder to achieve if your company includes older employees with a rigid style of working.
Create an inclusive and diverse work environment
Most companies hire individuals from different races just to market themselves as a ‘diverse’ company. However, in order to get your employees to stay, you need to create a work environment that is diverse, as well as inclusive. Your organization should state policies that consider the individual needs and requirements of all workers. Some examples of an inclusive work environment are:
- Maternity leaves for more than the average period of six weeks.
- Paternity leaves for male workers.
- Paid leaves for religious holidays.
- Flexibility in timings for students.
- A comfortable work environment for all employees.
A high turnover rate does not only affect the company’s reputation, but it can also affect its operations and productivity. You can lessen this rate by understanding what the employee needs. Additionally, you could create policies that ensure that the workers in your organization are happy with their work.