While turnover will always exist in companies, it can become a problem when the turnover rate is too high. If this is happening in your company, it is important to identify probable causes and act to reverse the situation in order to guarantee the best results for the organization.
Practical tips to reduce turnover
Given that a high turnover rate and lower productivity can seriously impact company projects, we’ve compiled a list of best practices to reduce turnover below:
Hire the right people
One of the main ways to reduce turnover or keep the turnover rate low actually starts in the hiring process. By selecting the right candidates, those who are the most aligned with the job requirements and the company’s culture, you ensure that the individuals that have the highest probability of success are there.
In order to achieve this, make sure the job description is clear, and during the hiring process, communicate the company’s values and expectations. Cultural fit tests and other tests to assess hard and soft skills can also be very valuable.
Offer a structured career plan
Most people enter a company expecting some sort of growth or promotion in the medium or long term. If that expectation is not met, skilled professionals will leave in search of better opportunities. This is why offering a structured career plan is so important. Not only does it give the employee a timeline to look forward to, but it also serves as a guide as to what level of performance they need to deliver in order to move up in the company.
Offer relevant benefits
Work can only be sustainable and productive when employees are healthy and content. This is where offering good benefits comes in. When an employee feels valued and can count on company benefits to lead a more balanced and healthy life, they are less likely to leave, and of course, are more likely to perform well. So don’t overlook the power benefits can have in reducing turnover rates.
While each function in a company can have its own routine and requirements, when employees are limited to always working in the same way and doing the same activities, boredom strikes, and leaving in order to experience something new becomes more and more alluring. Allowing space for creativity and innovation can counter that feeling. And with innovation the company can also have other benefits, such as increased growth, so it’s a win-win situation.
Have leaders that inspire their teams
Often, when an employee leaves a company – willingly or not – it is due to their relationship with their boss. An overbearing or “difficult” leader can lead to higher turnover rates, and hurt the entire company in the process.
Focus on inspiring leadership instead: the best leaders are those who are willing to listen to their teams with respect and offer their guidance and perspective – without micromanaging.
Have a solid organizational structure
Unfortunately, it is common for companies to have overworked employees in one team or sector, while others are idle in a different team or sector. This situation can lead to a higher turnover rate, and an overall more stressful work environment. Having a clear organizational structure, in which each employee has a defined set of responsibilities, can help give more visibility to what is being done and which teams actually need more assistance/ new hire.
Stimulate open communication
Many of the grievances that drive turnover are caused by a lack of communication between employees. This is why stimulating open communication and feedback in the company is so important. There are situations in which employees might feel uncomfortable, or that are unjust, but if the environment is not open to communication, they are unlikely to speak up, and can just choose to look for different work instead. Having clear channels for communication and listening to employees can have a huge impact on turnover rates.
Invest in technology that gives you more predictability on turnover
Since a high turnover rate can have negative consequences for the company as a whole, it is in the organization’s best interest to avoid it or at least mitigate its negative effects. With the use of artificial intelligence, it is possible to predict the probability of an employee leaving the company, and take action – whether it is to retain talent or search for a new person to fill the role.
Furthermore, this technology can be used to optimize hiring processes, lowering the risk of hiring an inadequate candidate, and thus helping to lower turnover rates. If you want to know more about how AI technology can transform your talent management, visit our site!