How to Reduce Employee Turnover
How to Reduce Employee Turnover
Introduction
Employee turnover is a common issue in the world. It is, leaving
talented employees within a period. Employees are the greatest treasured assets
of a business. “Employee
turnover refers to the number or percentage of workers who leave an
organization and are replaced by new employees”
Source:https://www.wow.jobs/blog/high-employee-turnover/
How to Reduce Employee Turnover
1. Recruit
qualified & talented Employees
The most suitable way
to ensure that employees do not leave the company is to recruit the right
person. The candidates must be skilled and aligned with the organizational
goals. And also need to confirm the ability to handle abrupt changes.
2. Attractive
salary &benefits
Salary and Benefits
are the significant reasons for people to do jobs. Salary is the payment for
the employees in return for doing their jobs. Benefits are added advantages
than payment such as life insurance, Retirement plan, Holiday pay and Maternity
leave.
3. Appreciation
&Recognition
Employees expect
Appreciation and Recognition for their hard work as Recognition is receiving
feedback for their performance. It could be either formal way or verbal.
Acknowledging an employee’s inherent value is Appreciation, and it is their
worth as an employee. If these are done timely & honestly, it can be
meaningful.
4. Flexible
work environment
A flexible work
environment is an essential need for job satisfaction, and it might not have a
time frame as long as employees complete their jobs. Creating a free and balance work environment allows employees to build up their morale, increase
creativity and stay motivated.
5. Employee
Training & Development
Training is a formal
activity done by professionals to improve employees’ knowledge or skills to
enhance their performance at work. Development is obtaining knowledge for new
responsibilities, which helps organizations to be more productive and innovative.
Employees who have had training & development opportunities are more
interested in staying in the organization for an extended period.
Examples
1. Softlogic
ODEL
Had an issue with high
employee turnover rate due to long working hours and unattractive benefits.
Odel management
introduced two shifts so the long working hours issue were solved. As benefits employees were given a healthy meal, few sets of uniforms, boarding
facility, transport, attractive incentives for sales personals and attractive
insurance policy.
After implementing
these changes employee turnover rate had come down drastically.
2. Emerchemie
NB Ceylon Limited
Which is a
pharmaceutical company was struggling with recruiting talented employees for
the sales team and retaining them. Issue was the low salary scale for the sales
representatives.
Management decided to
elevate the salary scales to market standards and other than the monthly
incentives they were given Quarterly incentives and yearly incentives. As at
now sales force is at 100%
Conclusion
“Take Care of Your
Employees, and They’ll Take Care of Your Business,” Says Richard Branson,
Founder Of The Virgin Group
References
Batt,
R. and Valcour, P.M., 2003. Human resources practices as predictors of
work‐family outcomes and employee turnover. Industrial Relations: A
Journal of Economy and Society, 42(2), pp.189-220.
Kurniawaty,
K., Ramly, M. and Ramlawati, R., 2019.The effect of work environment, stress,
and job satisfaction on employee turnover intention. Management Science
Letters, 9(6), pp.877-886.
McEvoy,
G.M. and Cascio, W.F., 1985. Strategies for reducing employee turnover: A
meta-analysis. Journal of Applied Psychology, 70(2),
p.342.
Odori,
H., 2007. A review of the literature on employee turnover.
Ton,
Z. and Huckman, R.S., 2008.Managing the impact of employee turnover on
performance: The role of process conformance. Organization Science, 19(1),
pp.56-68.
“Take Care of Your
Employees, and They’ll Take Care of Your Business,” Says Richard Branson,
Founder Of The Virgin Group
Thanks for sharing very nice information. Really impressive I really like your article Thanks for sharing with us
ReplyDeleteValuable article which is common issue for most of companies.
ReplyDeleteHigh employee turnover is a major problem in many organizations. This blog shows overall knowledge on employee turnover. Further you have included the reasons and solutions to overcome this particular issue. If you can include the effects of employee turnover then its a perfect one....
ReplyDeleteI do really like this article. This has become a main problem of some of the organisations and its a major threat to its work environment. You have point out all of all the things here. Keep up the good work.
ReplyDeleteGood effort on trying to emphasize the facts of how to reduce the turnover. 👍
ReplyDeleteHowever I do have my view on few points,
* The point given for having flexible working hours. This may not be practical for all employers as in some point this may increase expenditure too as when staff come in n go out the way they want, there is no control over the hidden costs ex. Electricity!
* Also when you give examples of specific companies you should be referred to those as well how that info was obtained.
Good initiative..practically all area we suffered due to turnover matter. You are mentioned here most of the common KPI’S but still difficult to retain the employees. My point of view as a Morden concept employer should brings up to his organisation in competitive market levels & new technologies. Otherwise really tuff games to retain the skill.
ReplyDeleteHighly appreciate your article and you encourage the team sprit in very first milestone. Good luck bro. If you add HR coportive society relationship and responsibility to reduce turnover it would be more attractive. GOOD EFFORT. Keep it up.
ReplyDeleteIts good article, turnover is a common issue in all the company and burning issue who work in production ,
ReplyDeleteTurnover is the burning issue for most of the organizations where they are involve with manufacturing process. The fact of high turnover & preventive actions are clearly reflecting from your article. Highly appreciating your effort.
ReplyDeleteWell written article linking with appropriate SME perspectives.
ReplyDeleteHigh turnover is critical issue for any organization. You have share some important key points to improve that. Appreciate your sharing.
ReplyDeleteValuable article and more attractive
ReplyDeleteEmployee turnover become a common issue in SL during this period and causes include company culture,Compensation and benefits promotion path and training ,issues with top management,political issues and much more.This is highly impact the profitability and customer satisfaction and also its costly to recruit new people and train them.In Sri Lanka,mostly poor compensation, toxic culture and bad managers causes for employee turnover.Hire right people,prioritize work- life balance,reward at correct time,offer competitive salaries and packages, closely monitor toxic managers and offer flexibility can solve this Problem.But unfortunately not even HR managers consider about real matters.Really valuable article and nicely done.
ReplyDeletepeople oriented manufacturing now biggest challenge is Employee turnover , Company HR Not Strong/Lack of management skill / Not proper Motivation etc so many reason behind That as per your conclusion need Take Care of Your Employees, and They’ll Take Care of Your Business company should think Human is resource not the cost ,good post share thanks
ReplyDeleteEmployee Turnover is a major issue in most of the organizations. This has got many reasons. Valuable article. Thanks for sharing.
ReplyDeleteThis is a most important topic that all of the Employers must focus on current business world. From my understanding there are different ways for different countries to reduce the employee turnover. But we have to find modern ways to reduce the employee turnover in current business world. However your article is great explanation at all with timely examples.
ReplyDeleteDear Sanjay your blog clearly defines that the reason for staff turnover in organizations the two most infuencjng factors for the turn over would be
ReplyDelete1. Salary and Benefits are the significant reasons for people to do jobs ,Employees 2. Appreciation and Recognition for their hard work as Recognition is receiving feedback for their performance
others alos improrant but when decision makinking this two factors contribute mostky towards staff moving form an organisation to an other
Good article and Most of tanalnted employees leave thire jobs becouse of thire bosses,lack of empowerment, internal politics, recognition .
ReplyDeleteHuman capital is important , most vulnerable factor in any organization , though I have critics on the first two points about recruit talented employees as well as attractive salary alone won’t make the employees to stay , but the way how superiors treat , how we look after them when they have real grievances matters the most , yes as said on above comments we have to have strong HR team while we train everyone to be an HRM
ReplyDeleteGood try
HH
Employee turnover is a main issue in lot of organizations. Valuable article. Thanks for sharing.
ReplyDeleteTimely and valuable article. Why reducing employee turnover should be a priority for any business. According to experts, recruiting, hiring and training a replacement can cost double the salary of an employee. Turnover can also hurt the morale of remaining employees, decrease productivity and make it more difficult to acquire new talent.
ReplyDeleteThe impact of high staff turnover includes decreased productivity, increased recruitment costs, avoidable time spent on training new employees, and lost sales. It is important to get necessary actions to reduce this employee turnover.
ReplyDeleteStaff turnover is an important way of measuring the effectiveness of an HRM system and the overall management of an organization.
ReplyDeleteHigh employee turnover leads to drastically collapse the business, at the end if management couldn't control. I personally believe employees turnover ratio is inversely proportional to Job satisfaction of employee in any organization in the world. Organization should seriously look after the job satisfaction of all. fantastic topic to discuss and thanks for sharing.
ReplyDeleteEmployee turnover is a matter associated with HRM of the organizations. Increasing employee turnover of the organization is affecting negatively on its performances. Therefore, it is important to apply effective HRM strategies to reduce employee turnover and retain employees with the long run of the organization.
ReplyDelete