High employee turnover can be damaging to a business because losing talent means costly resources need to be invested into hiring, training and ensuring new starters are brought up to speed.
Not only can high employee turnover be expensive but it can negatively affect business performance too, cause a deterioration of work quality and difficulty in completing daily tasks, damage a company’s image, have consequences on team dynamics and decrease productivity.
Therefore, it is important to tackle employee turnover head on.
Did you know?
- Each member of staff who leaves costs an employer £30,614 to replace. [1]
- It takes an average of 28 weeks for a new member of staff to get up to speed, costing £25,182 in wages. [2]
- One in seven (15.5%) UK employees resigned from their job in 2016. [3]
- One in ten (10%) UK new starters resigned before completing a year’s service. [4]
- The overall cost to employers of replacing staff in the UK is £4.1bn a year. [5]
How to tackle it?
Monitoring employee turnover is essential for all businesses. This allows companies to best respond to high turnover levels when it becomes damaging to the business, as well as how best to proceed with a minimal effect on the workplace.
Provide management training
Poor people management can be a major cause in employee turnover, so it is important to ensure your staff are equipped to deal with workplace issues. Management Training Days can help support managers in becoming competent, confident and compliant in dealing with stress and mental health issues in the workplace. Training can also help managers to better understand the relationship between pressure and performance.
Offer competitive pay and benefits
Employees want to be well compensated and have a nice benefits package, therefore it is important to place value on reviewing both on an annual basis to ensure packages remain competitive within the industry. Putting into place a wellness strategy can help create a benefit package tailored to your organisation and to suit your employees' needs
Appreciate employees
Recognising and rewarding employees will make them feel valued and appreciated. Celebrate their successes, business wins and the effort they put into their work. Employee happiness can correlate to job satisfaction, less absenteeism, productivity, engagement and retention. Simple acts of kindness, such as office treats or office massages, can help demonstrate employee appreciation.
Make flexible working hours available
Enabling employees to balance their work and home life will go a long way. Allowing flexible starting and ending times demonstrates that the personal lives of your workforce are just as important as their work. Flexible working hours can have a positive effect on retention as it provides employees with time to better manage their personal lives alongside their job, reducing stress and increasing happiness.
Ensure opportunities for development and growth
Development and growth can have a significant impact on an employee’s decision to stay. Offering training and development opportunities can help employees to feel nurtured and that growth is possible. Promoting from within and discussing all potential opportunities will create an honest workplace environment where progression and a career path is possible.
If you are looking to implement a wellness strategy into your business, please visit Your Wellness Hub on www.yourwellnesshub.co.uk or email us on info@yourwellnesshub.co.uk.
References:
[1] Health at Work: Economic Evidence Report 2016
[2] Health at Work: Economic Evidence Report 2016
[3] XpertHR - https://www.xperthr.com/people-analytics/2017/11/07/employee-resignations-rise-five-year-high/
[4] XpertHR - https://www.xperthr.com/people-analytics/2017/11/07/employee-resignations-rise-five-year-high/
[5] Health at Work: Economic Evidence Report 2016
