Many companies are finding it increasingly difficult to retain employees. Turnover has becoming a serious problem in today's corporate environment. The employment culture is changing as more employees are demanding more and more balance between work and personal/family life; it is not uncommon to see people changing jobs every few years.
Turnover costs for many businesses are very high, resulting in a huge impact in the financial aspect of an organization.
Turnover costs include:
- Recruitment costs
- Job position advertising
- Training costs
- Increase in workloads and overtime expenses before the replacement is ready to take on the responsibility of the job position
- Now because the company is short on staff, productivity is reduced resulting in an overall reduction in profits and growth.
Now I hope you get a clear idea of how serious this can be!
This is why hiring the right people initially is extremely important! It is best of the candidate shares the same vision as the company and proposes a will to follow and grow with the company.
Another way to reduce employee turnover is to make the company employee-oriented, focusing on interactions between all levels in the organization - from workers, to supervisors, managers, and directors. If one can feel part of the company as a whole, trust and loyalty can be built up between employees. Does your company's environment openly encourage communications and feedbacks from employees?
Attractive compensation packages also help to retain the employees. The top companies that have low employee turnover have attractive compensation packages such as health and healthy work environment. Many companies offer vacations packages, and other freebies such as free lunch, etc. to their employees. All these are worth considering reducing the impact on employee turnover.