By Tara Gibson - November 24, 2020
An organization’s business performance and overall efficiency are reliant on focused, motivated and responsible employees. Unfortunately, employees don’t always feel this way leading to employee turnover, which can be detrimental to a company both through costs and workplace productivity.
Retaining talented employees is a critical issue for many organizations, as employee turnover can be extremely costly and affect the performance of other employees in the workplace. Additionally, as the availability of skilled workers continues to decrease, it has become increasingly difficult to retain the most sought-after employees, according to SHRM.
The 2019 North America Mercer Turnover Survey found after surveying 200 US organizations that the average turnover rate is 22%, with retail and wholesale industries cumulating the highest turnover rates. Typically, a better job opportunity is the main reason for voluntary turnover with personal and family reasons also making an impact.
The costs of employee turnover can be massive. According to Leftronic, Gallup estimates the cost of replacing an employee can range from half to two times the salary of that employee. On the other hand, Work Institute estimates that each employee turnover case costs a company $15,000. Either way, turnover rates can be costly. US employers lost $617 billion in 2018 due to voluntary employee turnover.
There are various reasons employees leave their organizations. Some find a new job, move to a new place, go back to school, or retire. Others get upset over work-related or personal issues and quit on impulse and some simply decide they no longer want to work or need a job. All of these reasons contribute to what is referred to as “voluntary turnover”. For those who are fired or laid off by an organization – which has been an unfortunate factor of the COVID-19 pandemic – their turnover is considered an “involuntary turnover”.
SHRM explains that there are four primary paths to turnover, each having a different implication for an organization.
If an employee is unhappy or has a negative attitude at work, it’s likely they are dissatisfied with their position or culture in the workplace. Company and HR leaders should attack this issue by using retention strategies such as monitoring workplace attitudes and address the drivers of turnover.
You can learn a lot in an exit interview, so take the points given by the leaving employee and try to learn from them. It’s also helpful to try to reach your organization by sending out a poll to determine a general idea of how employees feel at work. This can be done with your mass notification solution – by sending out a polling link, employees are able to select an answer from a multiple-choice question, which could then prompt a follow-up question on how your workplace can improve company morale.
With an employee safety app, the ability to anonymously submit tips could also be leveraged for those who want to anonymously submit suggestions and concerns about the overall workforce attitude.
Many times, an employee leaves their position for a better alternative, whether it be compensation, developmental opportunities, benefit packages or the quality of the work environment. Again, monitoring morale is extremely important as well as staying competitive as an organization by offering rewards and benefits. SHRM suggests companies should be prepared to deal with external offers for valued employees.
Oftentimes employees have a predetermined reason to leave their job, such as if their spouse becomes pregnant, they are accepted to a degree program, or they receive a job advancement opportunity. Although this can be a difficult obstacle for workplaces to overcome, increasing rewards tied to tenure or in response to employee needs may make a difference.
SHRM provides this example: if a company is seeing exits due to family-related plans, a more generous parental leave policy or other family-friendly policies may be a way to keep valued workers.
Some employees leave their workplace on impulse without future plans or a new opportunity. This is often due to a negative response to a specific action, such as being passed over for a promotion or feeling a strained relationship with a supervisor.
Companies must analyze these instances and provide training to ensure these encounters don’t happen often. A workplace can also provide support to employees who feel frustrated or unhappy and provide support mechanisms like conflict resolution procedures, alternate work schedules or employee assistance programs.
It’s impossible to completely stop employee turnover, as an organization cannot reach the needs of every single worker. A mass notification and collaboration platform is a great way to consistently reach the workforce to share updates, benefits and other notable resources to support them. This is increasingly important amid our current climate as we tackle the coronavirus pandemic, severe weather events, nationwide civil unrest and more.
As mentioned above, polling employees to determine an overall workplace attitude can be hugely helpful in finding ways to improve company culture to retain employees. Although many organizations are functioning remotely amid the pandemic, it’s still important to keep company culture alive and well. Take a look at how polling works:
An employee safety app is another communication tool that can be helpful in sharing resources, procedures, full benefits, and more. Employees will easily have access to everything they need to know about their organization. With two-way text capabilities, workers can also anonymously submit tips to HR and company leaders about ways to improve the workplace.
Tara is a Marketing Coordinator on the Rave Mobile Safety marketing team. She loves writing about all things K-12, State & Local, Higher Ed, Corporate, and Healthcare, and manages the Rave social media channels. When she's not working, she's taking care of her smiley, shoe eating, Instagram-famous fur baby, Enzo!
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