Employment trends have changed over time. Previously, when people found a job they decided to stay there and build seniority, regardless of whether or not they were happy at the company. They preferred stability rather than going back to look for a new job. Now, on the contrary, you can notice that more and more people are changing companies, evaluating motivations and incentives until they reach their ideal place. Aaron Rodriguez, an expert in creating business plans and optimizing them, explains what strategies can be implemented to reduce high employee turnover.
It is no secret that high employee turnover has become a recurring problem within organizations. However, they are increasingly affected by it since having to hire new personnel on a continuous basis triggers a series of conflicts. Rodriguez explains, “Employee turnover refers to the number of people who join or leave an organization within a certain period of time. Think about how many people have left the company in the last year, either voluntarily or involuntarily.”
It is important for each company to know whether it has a high staff turnover or is within a “good” parameter, since this way they will be able to identify their areas of opportunity in terms of employee loyalty or, failing that, detect whether the workforce has stagnated and it is time to integrate new people for a breath of fresh air.
Rodriguez shares his way for a company to calculate this rate. “If you want to calculate more accurately the turnover rate,” he explains, “you can apply a rule of three, for example, if you have 200 workers in your job, and in the last year you have integrated 20 new people, but ten have left, then the formula would look like this, ( (20-10) /200 )*100 = The rate would be 5%.”
Among the main causes that can be found are low salaries, little possibility of growth within the organization, poor working conditions, leadership problems on the part of the bosses, a hostile work environment or even because the recruitment process was not very effective and this is always one of the first impressions that a company gives to its employees.
Clearly, all this incurs consequences that are not very favorable for companies since it generates a high cost, a cost that can be from 21 days to five months of salary for each worker. All this includes recruitment, medical exams, psychometric tests, hiring, and sometimes uniforms. It causes little stability and a lack of productivity. The person who takes on the position will have to undergo training in order to become familiar with the dynamics of the company, the team and the position.
Therefore, the pace of work may slow down while the new employee adapts completely. In addition, it also affects the work environment. A high personnel turnover could be disconcerting for the employees since they lose their teammates with whom they already got along. Worse still, if they are just starting to get involved with them and they leave, it could cause anger and mistrust, and in the long run, it could make it difficult for them to integrate again with someone else.
This being the case, Rodriguez explains what plans a company could employ to keep its employees. He says, “Definitely start by investigating the reason. If you notice that there are frequent personnel changes, try to identify which is the most unstable profile and thus avoid repeating it when you need to hire again.”
The hiring process should always be optimized no matter how good you think it is. The improvement must start from your planning for candidate selection. That is to say, you must have very well-defined profiles of each position in order to place the candidate in the position that he or she could best perform. Always based on their strengths, skills, and knowledge. To do so, you can use different tools to evaluate the candidate and make comparisons between the job profile and the candidate’s profile.
Always offer growth opportunities, incentive plans and create retention proposals, as well. “Ideally, employees should be able to move up the ladder within the company and get involved in projects that challenge and excite them. Thank and highlight efforts and achievements: awards are also an excellent tool to stimulate personal and professional improvement,” Rodriguez explains. “You can do this through bonuses, days off, grocery vouchers, printed recognition, travel, home office leave, etc. You can also give managers programs to retain their staff, and reward them when the desired rate is achieved.”