Editor’s Note: This is a guest post by Manish Dudharejia – Founder & CEO of E2M Solutions. His opinions are his own.
Good talent is hard to find, and in some cases, it is even harder to keep. High turnover rates within a company can not only slow down the process of advancement and success, it can also cost a business thousands of dollars for each lost employee. It costs an average of six to nine months’ worth of an employee’s salary to recruit a new hire and get them fluent in the position. So, if the position pays $40,000 per year, recruiting could cost between $20,000 to $30,000.
If your business is turning into a revolving door in terms of retention, it is a sign of some internal issues that are causing talented workers to look for opportunities elsewhere.
Perhaps your organization is guilty of these six mistakes that could causing high turnover?
Hiring a person based on their resume and initial interview alone is simply not enough in today’s data-driven business world. Not only is it difficult to judge a candidate’s true personality and skill level this way, it can also create a misleading experience of what the applicant can expect day-to-day on the job.
One of the primary goals of HR should be to eliminate misinformation. That said, utilizing more data-driven recruiting tools can help to create a more accurate look of the job and work environment. For example, using a pre-employment assessment can help both parties determine whether or not the job is a good fit. The assessment feature from Harver uses AI technology to create personalized tests and realistic job previews to gauge the candidate’s skill levels, situational judgement, and personality traits to help determine how they would mesh with the company.
Make sure that your hiring process is not only smooth and seamless, but also honest. While it is the candidate’s job to convince the interviewer that they are the right pick, there is also pressure on the recruiter to make that position sound attractive and desirable. However, this does not mean that you should only harp on the positive aspects of the job while failing to mention the challenges that come along with it.
It is unrealistic to expect the majority of your team members to stick around forever; most of them will have dreams to move up and pursue other opportunities eventually. However, your organization can help to support their goals by encouraging tactics to establish their own personal professional brand, a strategy that could influence their decision to stick around. In fact, according to a LinkedIn Report, employees that worked with businesses who invested in their own personal branding were 20% more likely to continue working at that organization long-term, and were 27% more likely to have a positive perception of their employer.
Consider providing your employees with the resources and opportunities that can help them advance in their career.
Recommend online tools, which can help professionals create well-designed resumes and cover letters to create awesome documentation that highlights their experiences, skills, and job history. The program even includes additional resources for resume design, including lists of keywords to include, writing tips, and sample templates to help them get started.
Your business can also set people up for long-term success by providing a more positive employee experience. Allow your team leaders the opportunity to establish their own respected personal brand by collaborating on projects that will challenge them. Encourage them to participate in thought-leadership content such as featured bylines on industry blogs, or company webinars, speaking functions, etc.
Always remember, you want to be known as a company that improves the lives of its employees; both now and in the future
It’s not unusual for employees to get a little nervous when performance review time comes around, but an exceptionally negative experience could be enough to cause them to look elsewhere, rather than trying to change and improve. Additionally, a lack of recognition when they are doing their job correctly is extremely discouraging. In fact, 79% of employees would leave a position where they do not feel appreciated or recognized.
Instead of hosting occasional reviews that revolve around the mistakes that the employee has made, it is better to hold more frequent meetings with managers and leaders that look for areas of improvement. When these review meetings are held more often, it can be easier to spot changes in performance, allowing managers to congratulate and encourage employees while also providing the opportunity to give advice. Encourage more consistent performance management and be sure that jobs well done are appropriately recognized.
According to Gallup’s latest poll, only one-third of employees are truly engaged in their job. The engagement level of the workplace has a direct impact on productivity, profitability, and loyalty, so if a business’s culture is disengaged, it could lead to higher turnover rates.
In order to turn the work environment around, or avoid active disengagement in the first place, leaders must take action to cultivate a positive culture. Utilizing programs like Culture Amp that measure current engagement and allow employees to share their own feedback can do a lot to establish better practices for a more pleasant workplace.
Often the opportunity for career advancement is one of the most important benefits that recruiters harp on when finding new candidates. Most people do not want to stay in the same position for their entire career, but if your business is not regularly promoting workers or filling upper levels via internal recruiting, it could be discouraging enough to cause turnover.
Take a look at your current team. Do people that start here tend to get stuck in the same routine or roles for long periods of time? Does your business actually have a succession plan in place to train leaders to take over upper-level roles?
If there is no internal lateral or vertical movement in your company, it is no wonder that workers will start to look for opportunities elsewhere. Keep an eye out for leadership potential in your employees and come up with strategies to encourage continuous learning and advancement in the workplace.
Not many people want to work at a place where you simply clock in, clock out, and go home with little to no passion for the job. If there is nothing to keep your employees motivated and inspired, then it shouldn’t be a surprise that they don’t want to stick around.
Make sure that your organization is connected to a bigger goal than just getting through the work week. Connect to something beyond the day-to-day, whether it be improving the lives of customers, supporting a good cause, or trying to make a difference in the world. Create opportunities for employees to get more involved with the big picture, such as company-wide volunteer projects or hosting fundraisers for charity.
There are numerous benefits to having a team of employees who have been with the company for a long period of time. Not only does it eliminate the costs of recruiting, training, and onboarding new talent, it can also help support a more successful business of loyal team members.
If your organization is regularly seeing people come and go, it is a sign that something is not right with the internal structure or environment. Take a good honest look at your company and see if you can spot any of the warning signs that could be impacting your employee turnover rates.
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