The Cost of Employee Turnover
There’s nothing worse than being caught off guard when a top-performing employee resigns out of the blue. The fallout from such a resignation can be a nightmare that goes beyond just finding a replacement. There’s the risk of further employee turnover (inspired by the first resignation), having to delegate work to other team members to make up the difference, and the cost of training a new hire.
According to PricewaterhouseCoopers (PwC) research, recruiting is a costly exercise in Australia, staff turnover costs $3.8 billion in lost productivity and $385 million is attributed to recruitment expenditures in the first 12 months.
The Rate of Employee Turnover
In 2020, the average rate of employee turnover in Australia was 8.2%. If your organisations’ number is lower, great work! If it’s “higher”, you probably need to work a little harder on retaining staff. According to Hays, 33% of Australian employers have reported an increase in turnover rates in the last 12 months, and 44% of Australian employees plan to look for a new job in the next 12 months.
After investing all that time, effort, and money into seeking out and onboarding new employees, it’s, of course, important that they don’t leave any time soon.
If you are concerned that your company is at risk of losing key employees, it’s important to act quickly to strengthen your retention efforts. Here are some tips that can assist in employee job satisfaction, and your capacity to retain valued employees.
Onboarding Process
Newly hired employees who participate in a well-structured onboarding process are 82% more likely to stay with a company for up to 3 years. Onboarding is an important aspect of attracting and retaining top talent, as it increases employee performance by up to 11%.
Businesses can drastically improve employee retention and engagement by providing a positive onboarding experience and by welcoming them into the culture of your organisation. According to recruiters, 6 out of 10 Australian managers have had an employee resign during their probation period, with 43 percent leaving within the first month due to poor onboarding process.
Training and Development
Assist your current employees by identifying areas for professional growth. As business requirements continue to evolve, employees upskill to gain new capabilities that will help them to grow within the organisation. Make it a priority to invest in your employees’ professional growth and encourage them to participate in workshops, conferences, events, or further education.
Performance Feedback
Don’t let the current lockdowns or remote working stop you from doing regular performance reviews. These reviews give managers a change to chat to their employees about their short- and long-term professional goals in these one-on-one sessions and help them to visualise and realise their future with the company.
Internal Hiring
Your employees want to know that you’re engaged in their career progression, it makes them feel valued and seen. Hiring externally when the position could have been filled by an internal promotion can sometimes be discouraging for loyal staff. By promoting from within you ensure that your employees feel supported, and you show that there is career growth potential within the company, reducing the risk that they’ll look for these opportunities elsewhere.
Shifting Work Responsibilities
Doing the same work repeatedly can become monotonous and less challenging for some. For those who crave variety in their day, employers can involve them in different roles and responsibilities and allow them to collaborate with other departments. This will help in generating better ideas and boost co-worker relationships, while also giving a helping hand to their career development.
Understanding the reasons behind employee turnover is a crucial first step towards retaining employees in your organisation. The growing economy and expanding job market allow employees to look for better job opportunities elsewhere, but well-prepared business can reduce turnover by using some simple, effective, and efficient management strategies.
