If your company is struggling to retain its employees, then you could be in some serious trouble. The Wall Street Journal estimates that it costs more than twice an employee’s salary to find and train his or her replacement, and because that doesn’t take the potential loss of business continuity into account, the actual employee turnover ratio could be even higher. Moreover, frequent turnover is damaging to office morale, and begets—you guessed it—even more turnover. Left unchecked, frequent turnover can spiral out of control—and significantly impact your bottom line.
But what causes this in the first place and how do you reduce your employee turnover ratio? In virtually every instance, it comes down to one of two things: either hiring the wrong people for the job or failing to provide your employees with a rewarding work experience. The first problem can be solved by reassessing the hiring process. Interview applicants carefully and thoroughly, and do your due diligence in regard to their employment history, job qualifications, and personal record. Also consider how they’ll fit into the company culture and their ability to work with colleagues and managers. Make sure you’re offering a competitive pay rate and benefits package, and review these packages at least annually.
Now for the second potential trouble area: failing to provide a sufficiently rewarding work experience. This can be a tricky problem to fix compared to improving your hiring process and offering competitive salary packages, but with a little creativity, it can be much less expensive, too. Employees are satisfied with their jobs when they feel respected and encouraged by their supervisors, when they feel challenged and upwardly mobile within the company and when they feel like they’re part of a team.
One incredibly affordable way to improve worker job satisfaction and reduce employee turnover is to offer flexible schedules and family-friendly, work-from-home telecommuting options. When consulting firm Accenture conducted a survey of its employees, they found that 80% of respondents said their flexible work schedules made them more likely to stay with the company. Nearly half of Americans hold jobs compatible with at least part-time telecommuting, but the job market hasn’t caught up to this yet; consequently, offering flexible work-from-home benefits is a cost-effective way to set your company apart from the competition. And because video conferencing technology is now available on PCs, tablets and smartphones, encouraging your employees to work from home need not come at the cost of open communication.
So if frequent employee turnover is playing havoc on your bottom line, don’t take it lying down. Take a good, hard look in the mirror, identify what’s causing the problem, and put into effect some meaningful changes to reduce this potential devastating risk factor. In the end, you’ll be happy you did—and so will your employees.