Turnover is an inevitable part of doing business. While some turnover is considered healthy — pushing low-performing employees out while bringing fresh perspectives in — losing high-performing employees or too many in short periods of time destroys productivity and kills morale.
As a HR manager or leader at an organization, it’s important to keep your finger on the pulse of employee satisfaction and regularly analyze employee turnover rates. Total employee turnover has increased over the last few years, rising from 15.1% in 2013 to 18.5% in 2017. You should strive to have a turnover rate at or below the average for your area. View the turnover rats for your industry and region with the Compdata 2017 Turnover trends report.
Ask these questions to help you learn more about employee departure so you can make a plan for change.
Why are employees leaving?
Is a significant portion of your workforce reaching retirement age? Are mid-level staff leaving for new opportunities they aren’t afforded at your organization? Do employees feel compensated fairly? Conduct exit interviews to understand rationale and consider an anonymous employee survey to learn more about current employee discontentment.
Are departing employees high- or low-performing?
Look at departing employees individually. Is this a high-performing employee that is a big loss for the organization, or, is this a low-performing person who wasn’t a great fit? Notice trends and take action to keep top talent. Remember, employee retention starts during the hiring process, so ensure you’re taking the time to recruit the right people.
How can you reduce turnover rates?
To keep turnover low, you need to keep staff happy. It’s a candidate’s market now and qualified employees in many industries have adequate job opportunities. Think beyond salary and beef up the benefits package. Consider flexible work schedules and telecommuting if possible. Finally, make sure staff feels they are appreciated and given adequate opportunities to grow their skill sets and advance their careers.
