Labor turnover describes employees leaving an organization. Employees leave a company for diverse reasons, and managing labor turnover requires understanding the root causes. Higher employee turnover and low retention rates have a devastating impact on a company. For example, a company incurs costs and time to train new staff. Moreover, new employees’ productivity and input are lower than seasoned and skilled workers. Therefore, it is in the best interest of a company to manage employee turnover. Below are strategies to reduce labor turnover and achieve higher retention rates.
Employee involvement entails listening to workers and addressing their concerns. Employers enforce policies, work schedules, and guidelines without consulting employees. Failure to involve and listen to employees creates a work environment where workers are dissatisfied with working conditions but cannot voice their grievances. Over time, such employees are frustrated, forcing them to quit or resign. To manage labor turnover, an employer should listen to employees through committees or suggestions. Furthermore, it is prudent to act upon comments and suggestions.
Hire the right people
Employees leave an organization after realizing it does not fit them. Job seekers, especially youths, identify the best career path and interest through trial and error, moving from one occupation to another. Recruiting people unsure about what they want to pursue increases the likelihood of them leaving prematurely. An employer must assess an individual during a job interview to establish whether they are the right person for a job. For example, an employer can ask behavioral interview questions to ascertain how individuals react in certain situations. Behavioral and career path assessment enables companies to recruit individuals who fit in their work environment. Such mitigate employee turnover.
Incentives motivate employees to remain in a company. Incentives are of different forms. For example, certain employees generate satisfaction from monetary benefits, including a salary raise and bonuses. Employers should offer competitive pay in those cases to enable employees to afford basic and self-actualization needs such as housing, food, utilities, vacation, and health insurance. In contrast, other employees value verbal praise and promotion over monetary rewards. The employee should show recognition and appreciation to such workers. This makes them feel valued, preventing turnover. Failure to offer incentives, whether monetary or non-monetary, persuades employees to look for alternative workplaces where they feel valued.
Open communication channel
Personal situations drive employees to leave a company. In such cases, it is not an organization’s fault or shortcoming that causes staff turnover but reasons specific to an employee. Creating an open communication channel allows a manager to engage with employees and understand them at a personal level. Communication helps managers solve a problem that would have forced an employee to leave an organization. For example, an employee may be leaving an organization to relocate to another city to take care of an elderly parent. However, through a one-on-one conversation with an employee, the employer might hire a caregiver to ensure the company does not lose the employee’s valuable input. Furthermore, the manager can transfer the employee to a branch close to the parent.
Prioritize employee happiness
Employee happiness is vital in preventing worker exodus. Employers can offer competitive wages, promotions, or hire the right people but still experience turnover. Employees are not robots, and what makes one happy does not apply to all. Therefore, an employer should ensure that the working conditions enhance happiness. Employees are susceptible to burnout or mental health problems when overworked or put under extreme pressure to deliver. Burnout forces employees to quit and look for an emotionally fulfilling job. As an employer, it is crucial to invest in employee happiness and understand worker limits.