If you don’t recognize a lot of the faces in your workplace, then you may have too much employee turnover. While it’s natural for people to move on to other opportunities, turnover rates have gone up over the past couple of years.
Recently, on LinkedIn, I conducted a poll on what is a sign of trouble for a previously successful business. The choices included:
- Lowering of standards
- Slow to respond to challenges
- Too much employee turnover
- Loss of old leadership
The top choice was too much employee turnover, with 53% of the vote. While people who make goodbye cakes may love this trend, a revolving door of employees comes at a cost. Like spilling a glass of wine, the cleanup is messy and time consuming.
According to PeopleKeep, the cost of replacing employees may be higher than you think. Consider their findings for that expense:
- Hourly employee: $1,500
- Technical positions: 100%-150% of their salary
- C-Suite level: 213% of their salary
At this point, you need to think about whether you have a robust retention program. Sure, some employees are always looking to leave. Let’s not worry about them. Instead, focus your retention around these principles:
Shared Superpowers
Consider what are the best things about working at your business? Is it something like rewarding work or great benefits? It could even include things like good teamwork and mentorship.
While these are qualities that set you apart, are they communicated to employees? You don’t want your superpowers to be something that people haven’t discovered. Make sure strengths are promoted because that may be the thing that convinces someone to stick around, rather than look for greener pastures.
Loyalty Program
A lot of businesses keep customers around through loyalty programs. Can you create one for employee loyalty?
Perhaps this is tied to anniversaries, team output, or some other milestone. If you know people tend to leave your organization between year two and three, then try to create some sort of incentive for people to stick around.
In its simplest form, your program could feature some sort of verbal recognition or a certificate. Put the spotlight on people and make them feel special.
It probably would be good to put some money into this program because sometimes a gift card shows more appreciation than a pat on the back.
While it may feel strange to give employees these kinds of bonuses, they cost you less than hiring a new employee. And many firms give finder’s fees, when it leads to the hiring of a new employee. So why not open your wallet to keep people around?
The Big Picture
Too much employee turnover is often rooted in not knowing much about the employer. The big picture is missing or is just known by senior level staff.
Sometimes, you have to keep certain things a secret but employees like to know they are working for a business that’s on the move or planning to grow. Perhaps the big picture is your plans for a comeback.
Whatever it is, communicate your vision of the future. When people only hear silence in this area, they will likely guess at how things are going. And they may guess incorrectly, leading them to pack up their desks.
Along those lines, make sure any policy changes that might rub some people the wrong way, are explained. No more free coffee or snacks in the break room might not seem so bad, if the action was done to prevent layoffs or other cutbacks.
Let’s Create a Memorable Meeting
