With employee turnover being one of the costliest problems that a business faces, effective ways to whittle it down should be on every recruiter's mind. According to the HR consulting firm, Corter Consulting, the loss of one $8 / hour employee costs over $5,000. A salaried employee earning $75,000 annually can cost about $15,000.
Businesses pay a big price. There's the cost of job ads, HR time spent finding and interviewing new candidates, and training isn't cheap, either. Nobody wants to lose a great employee. So here are 6 ways to take action against it.
#1: Don't Ignore Company Culture Fit
Good candidate evaluation takes a lot more than checking off qualifications on a resume and a having a good interview. There are plenty of highly qualified candidates who won't stick around for the long term. Focus on how well the candidate fits the company culture and you'll find a better match.
RELATED: 4 Ways to Hire for Cultural Fit
#2: Treat Staff Like a Valuable Asset
You've probably heard it a thousand times before: Employees are our greatest asset! Treat that sentiment as more than a catchy phrase, and your employees will appreciate it. Most people want to know that there's someplace to grow; that they won't stagnate. The National Apartment Association's (NAA) 2015 conference took this issue head on, explaining that lack of growth among the top causes of employee loss. Offer ample training and open communication, and you'll encourage the feeling that there's room for growth.
#3: Be Clear About Expectations
Training helps avoid frustration, especially in a busy company. When an employee gets solid training, they know the job and know what's expected and you get fewer surprises. NAA recommends slowing the pace of orientation for better attention and long-term results. And an Otterbein University honors study, "Causes of Turnover and Employee Satisfaction: A Case Study of Otterbein University TeleFUND," further explains that conflict within the management staff, including conflicting employee expectations, damages work satisfaction.
#4: Ask for Employee Input
Nothing sucks the wind out of an employee's sails quite as easily as the feeling of being ignored. Asking for input on how the company operates, within reason, helps employees feel more like a valuable partner instead of just a cog in the machine.
#5: Think About Uncommon Perks
Maybe your company doesn't have the budget for huge holiday parties and destination work conferences. But that doesn't mean you can't offer something great. Think about unusual perks to make the work environment more comfortable and happy. Maybe a membership to a gym, additional maternity leave (for men and women), or even pet insurance would work for your employees. Or how about occasional catered lunches or visits from a fitness trainer?
#6: Watch Your Market
Sometimes a business grows a bit blind to what's happening in the market. If other companies offer a better situation, attrition is the natural result. The best way to learn why employees leave is to find out from the source. With some, the reasons will be obvious. But with others, there might never be a sign. An exit interview might reveal a pattern and it will definitely offer insight. If a large percentage of people leave for a better paying job or any other reason, you'll know where to start looking for inspiration on how to improve.
Employee retention affects everyone in the company, from the executive staff to fresh-from-college new hires. It's difficult to get it right, and you certainly can't please everyone. NAA says the vast majority of new hires decide whether to stay or go within the first month of employment. For companies where attrition is a big problem, it's worth it to get to the bottom of why.
Maybe the job is simply unpleasant. Going the extra mile with meaningful benefits can partly counter that. Or maybe your company has focused so much on producing great work that it's lost sight of new HR trends in the industry. Whatever the reason, you can get to the bottom of it. From there, it just takes some creativity to keep great employees where they belong in your company.