EMPLOYEE RETENTION AND TURNOVER

EMPLOYEE TURNOVER PROBLEMS

 

Training is my wheelhouse, forcibly from my time in the military, and now enjoyably and with passion after seeing how useful and effective it is, and how really, training is at the root of so much success and growth.

Before talking about training, and using training as a solution to problems, you need to identify the problems.  One of the biggest problems in the human resources arena is employee turnover and finding ways to retain employees.

I dove into the research and identified what the problem actually was, so I can be sure my solutions for how to train your way out of the are going to be accurate and effective, this is what I found –

 

EMPLOYEE TURNOVER PROBLEMS ARE BIG PROBLEMS

The numbers are staggering.  Employee turnover is a big problem, and the research suggests even more employees are looking to leave, which suggests to me that those people probably aren’t performing at their best.

This from the Harvard Business Review:

In a recent blog post, we cited some alarming numbers: 40% of workers are planning to look for a new job within the next six months, and 69% say they’re already passively looking.

https://hbr.org/2012/11/five-ways-to-retain-employees

Yikes.  That’s definitely a problem that will need to be addressed because it’s going to cost a whole lot of money:

According to a study by the Society for Human Resource Management, employers will need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement. Doing the math, that means that for an employee salaried at $60,000 will cost the company anywhere from $30,000 to $45,000 to hire and train a replacement. Other research show that the average costs could be even higher.

https://www.huffingtonpost.com/julie-kantor/high-turnover-costs-way-more-than-you-think_b_9197238.html

Not to mention the non-monetary costs of losing an employee, such as the damage to the morale of the business, the corporate culture, the requirement to re-do team building then getting new people up to speed and working toward the same business goals and vision.

 

And so why?  Why are people leaving their jobs and why is turnover so high?

Leading Causes of Workforce Turnover in Canada

  • Promotion opportunities (32%)
  • Lack of career/training opportunities (16%)
  • Base salary (12%)

Some of the most prevalent secondary reasons given for voluntary turnover included issues related to benefits, job security issues, lack of a fair work/life balance, and personal or family reasons.

https://www.imercer.com/content/article/employee-turnover.aspx

This should be no surprise if you take a minute to think about what you yourself value and what matters and is important to you and your well-being.  No wonder these are also the things that matter to employees.  You spend about 1/3 of your day somewhere you need it to be worthwhile, and you need to be content and happy.

 

So the big question now is, what can be done about this?  And here’s some relevant information to address that:

Most of the employees surveyed said they knew within one year on a job whether or not they’d stay long-term.

That means employers must act faster to work with junior employees on their career development and job satisfaction — things that naturally build loyalty.

https://www.cbc.ca/news/business/job-satisfaction-employee-retention-canada-1.4945021

All I see from that last piece is opportunity.  If we can identify the problem then we can find ways to solve it, and when we know the reasons why we can find surgically accurate solutions.  Namely, we can train leaders and managers to do and be better and focus their efforts on better human resources and management practices that will create the environment and processes that will lead employees to want to stay.  You can also use training to create the corporate culture that aids in retention.  And finally, provide the training to employees that they’re looking for that makes them want to stay.

 

EMPLOYEE TURNOVER: YES, IT’S YOUR FAULT

If you’re the boss, it’s your fault.  If it’s your fault, then it’s also completely open to you to find a solution, all you’ll need to do is break down what the actual issues are in your workplace and then make a plan to fix it.

Here are the reasons:

The top global reasons for employees leaving are a lack of opportunity to advance (45 per cent), dissatisfaction with senior management (41 per cent) and the work environment or culture (36 per cent).

https://www.hrreporter.com/culture-and-engagement/36271-canada-ranks-4th-globally-for-highest-employee-turnover/

And these:

While salary and benefits continue to be the most important consideration for workers looking for a new job, it’s far from the only one. Randstad’s Employer Brand Research found that long-term job security, pleasant work atmosphere, and work-life balance round out the top 5 must-haves for job seekers.

Interestingly, studies have found that a strong culture is even more important to retain employees than it is to attract them.

https://www.randstad.ca/workforce360-trends/archives/top-hr-challenges-in-2018_1699/

So what is it for you?  Do you just not offer enough base pay?  That’s a big consideration, and it might not be something you can overcome right now, depending on where you’re at with your business.  But here’s the good news, there are other things you can do, such as providing respect, flexibility and a pleasant work environment.

More on those other options aside from pay and benefits here: 

At LinkedIn, for instance, after talking to hundreds of our top engineers, we found that something as simple as a few conversations could have a major impact on retention rates. By encouraging managers to have more career-focused conversations with employees, attrition rates for those engineers plummeted to 5.5%.

Similarly, when leaders at Nielsen analyzed their retention data, they saw that employees who made lateral career moves within the company tended to stay much longer. In fact, they found that moving employees laterally was nearly as effective as giving them a promotion.

94% of employees say they’d stay longer if a company invested in their career.

https://business.linkedin.com/talent-solutions/blog/trends-and-research/2018/the-3-industries-with-the-highest-turnover-rates

The underlying implication from that research is that something as simple as having your intentions in the right place, ensuring your employees know that you care and they matter can have an impact.  This can mean as little as starting a conversation

 

 

EMPLOYEE RETENTION AND TURNOVER

 

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