Employee retention and engagement are the two main concepts related to a company's productivity today. Did you know that internal hiring can increase the life cycle of an employee in the company by 41%? Even if the employees are highly engaged with the work, they do not stay in the same company forever or in the same job role. People want to make career moves and move up the ladder and not remain stagnant in one place. Therefore, you must provide opportunities for your employees to upskill and learn new trends in the changing atmosphere. Retaining your employees in the company dramatically benefits the bottom line. Statistics have shown that turnover has cost companies of the average size more than $49 million per year. With proper leadership and management training, one can quickly mitigate the situation.
An increasing number of uncertainties and competition in the labor markets have made it difficult for organizations to attract and retain suitable candidates in the long run. A high company turnover can reduce productivity and endanger the company's survival in the business sector. Here are some of its impacts:
- Lack of Management – A high turnover can also impact the leadership and management capabilities of the firm. Losing your best leaders at a critical juncture can result in misdirection and confusion among employees. The lack of management and leadership skills can reduce productivity and hamper the organization's success.
- Loss of Knowledge – If your company turnover rates are high, the immediate impact is the loss of critical knowledge. The knowledge that an employee has gained from working in your company can easily transfer to other competitors. That employee's experience can also be transferred to other organizations that may use it against you. This hampers the favorable environment for the new team members engaged in a culture that does not provide them with an identity or a collective purpose.
- Low Morale – A high turnover can result in low employee morale. This is a result of the increased workload where every employer has to take responsibilities beyond the scope of the job role. This may reduce the service quality and affect the employees' performance.
Tips to reduce the turnover rate
There may be several reasons a company has a high turnover rate, including the lack of learning opportunities or developmental programs, overworked employees, lack of feedback, a toxic culture, and many others. There are some strategies that every company can use to uplift employee morale and increase engagement to reduce turnover.
- Learning and Development – One of the most important and tested strategies is providing employees with continuous leadership and management training opportunities. Employees do not want to become stagnant and stuck in the same job. They would also like to grow as individuals. Providing a learning environment is a significant factor in retaining top skills. If employees feel that they are in a job that has no future, they will look for other opportunities that will give them opportunities to develop their skills and income.
- Balancing the workload – Distribute your work evenly and do not overstress or overwork your employees. If there is a skill gap, utilize specialized external companies to help you in the hiring process to get the right skill and personality according to your environmental demands.
- Provide feedback – Feedback is an important tool for understanding the experiences and expectations of your employees. Feedback should be a two-way process where employees and employers exchange ideas and experiences regarding their job roles or projects.
- Recognition – Recognize good work, even if it is a small part of a project. Command every employee on the quality of their performance. Also, communicate your expectations and make sure that it is all about the results and nothing else.
- Communication – Utilize different leadership and management programs to enhance your communication skills. Without effective communication, misunderstandings will arise, and more significant risks of ineffective teamwork. Let your employees develop their management skills and encourage them to create long-term relationships in the company.
Employee retention today is a problem, given the changing expectations and the lack of opportunities in an organization. Companies should provide a learning environment that will encourage employees to improve themselves and increase their engagement with their work and the environment around them.