As per the data from LinkedIn, in 2017, there was an employee turnover rate of about 10.9 per cent. In a workplace, the Human Resource manager, also known as HR, always is worried about retaining employees. Therefore, when a new employee is appointed at a workplace, HR thoroughly observes that person and sees if that person will fit in the company. It is better to assess them correctly on the day they step into the office as an applicant in the interview if you do not want to not worry about your employees leaving after some time - or in other words, managing the employee turnover ratio.
Reducing your employee turnover is not only about raising their salary and benefits but also about creating trust. A casual gathering or a small party can help your workers get closer to everyone and open up. Creating a comfortable and fun environment for the employees shall help them enjoy their work and not consider it a burden.
In the workplace, people should not make someone feel alone. Although some people might prefer to stay away from the crowd, there's always something in common between two people. Staying in touch and asking how someone is doing also makes people feel they matter, so don't hesitate to say hi, help or praise someone.
Why does Employee Turnover Ratio Exist?
Let's be honest here; hiring an employee is easier than preventing them from leaving. Unless an employee is not completely satisfied with their work-life balance, they will leave sooner or later. And satisfying an employee and reducing the employee turnover ratio is extremely hard. But before we discuss the solution, let's discuss some causes first.
Why does an employee leave?
Opportunities and salary
According to an Infrastructure and The Harris Poll survey, 77% of the employees feel they are on their own in an organization. When a company hires a person to work, they should analyze their employee capacity and promote them according to their progress because if he or she finds a better job with good pay, there is no reason to stay back. Therefore the employer should analyze the employee well and ensure that person is satisfied with their post and paid according to their work. No one would want to feel undervalued, so HR and company management should ensure their employees get what they deserve.
Lack of growth opportunities and unsatisfactory salary is one of the biggest reasons behind the rising employee turnover ratio. The concept is quite simple. People don't get enough salary for their work - they leave. Employees do not find a place to grow their skills - they leave.
Unhealthy work environment
This is another one of the obvious but hard-to-notice reasons behind the increase in employee turnover ratio, and it is also a common one. Although the human resource management will do their best to find the perfect person for their vacant spots - you cannot know how a person is from a few meetings. Because of this, certain troublesome workers may slip across and become a tumour in an office.
Along with this, in any organization, conflicts are inevitable. If you do not solve such conflicts quickly, the work environment can get quite unhealthy. If this type of environment is filled with conflict and discomfort, employee turnover rates will increase.
Relocation or other personal reason
Sometimes your employee is relocating to some other place because of his or her family or other problems. In such cases, one can convince or show opportunities and maybe give a reason to stay if you lose a good employee. This is something over which the employer does not have much control.
This is among the few reasons where the organization and human resources have no control whatsoever.
How to reduce employee turnover ratio?
There are a lot more factors that contribute to employee turnover ratio other than the ones we mentioned above. But they are three of the leading causes. The good news is that with a little know-how, the human resource management and the organization can drastically reduce employee turnover ratio.
Now that we have discussed some of the leading factors, let us talk a bit about how to decrease the employee turnover ratio.
Recognize your employee's ability
You should know the worth of your employee turnover and position him or her according to their ability and pay them accordingly. If he/she is doing good, then giving a raise or declaring employee of the month is a good way to keep the employees motivated and make them stay.
By this, we essentially mean the age-old saying "value your employees' effort and ability." No one likes to work at a place where their skill and effort are under-appreciated. In fact, acknowledging your employee is one of the simplest yet most effective strategies to reduce the turnover ratio.
Treat everyone equally
Don't ever discriminate among your employees; treat everyone equally so that some do not feel that they are inferior to others. When an employee feels equality among his or her co-workers, he/she can work better and feel better.
This essentially boils down to not being biased towards any particular employee or group of employees. Just treating everyone as equal, regardless of their post or age, can increase both the employee's experience and employee engagement. Along with this, this simple act by the Management team can also improve the company's culture.
Keep aside some time for fun/recreation
Every once in a while break is necessary, and having some gatherings or small parties shall help your employees stay rejuvenated. All work and no play make jack a dull boy!
Going out on weekends with your co-workers shall help create good bonding. Besides this, having a recreation session every now and then will also aid your employees in having a better work-life balance as well. This will eventually lead to better employee satisfaction, reducing the overall employee turnover ratio.
Although there will be a decent amount of expenses, the recreation program is one of the effective strategies to reduce the turnover ratio. And besides, spending a little money for a skilled trustworthy employee is worth it.
Help your employees grow
Everyone seeks growth, and you should help your employees grow while working. Find them the right benefits and show them the path to improve and also help them which shall help them have a vision that they will be able to find better opportunities.
Regarding strategies to reduce the turnover ratio and provide a good employee experience, providing growth opportunities for your workforce is as best as it gets. They get the necessary skill upgrade, and you get satisfied human resources with better skills.
One should always be transparent and open to their employees so that your employees don't lose trust. Trust is the base of every successful interaction - especially for an organization. The basic gist of organisational transparency as an effective strategy to reduce employee turnover ratio is the building of trust.
If your employees trust you, they will not leave, given that you also care about employee happiness as well.
In the end
It is easy to attract but harder to retain an employee, and employees can quit for many reasons. Because of this, it is important to ensure the happiness of employees. There are a lot of ways to td this. However, the method to reduce employee turnover ratio all boils down to maintaining employee engagement. Along with this uplifting, the company's culture and employee satisfaction play a decent part as well.
That said, the benefits of these strategies are not limited to retaining employees either. If implemented well, job seekers who visit the company for scouting as well. So ensuring employee happiness and company culture can both attract and retain the valuable human resource.
We hope you found this informative. And as always, thank you for reading till the end.