If you have a business with more than one person, you will have to deal with employee turnover. Employee turnover can hit smaller businesses hard. The estimated cost of backfilling roles can cost employers about 20% of the position’s salary in recruiting, hiring, and onboarding costs. The average hiring process can take 26 days to complete. Learning how to calculate employee turnover rates can be a challenge and it helps to have an employee turnover calculator online to see just what you are spending with onboarding new employees.
Top Reasons for Employee Turnover
Once you use an employee turnover calculator online and see that you may have a higher than average turnover rate, you need to figure out why employees are leaving. Some of the top reasons why people are leaving include poor management from supervisors, lack of training and necessary resources, lack of organizational fit, and lack of career advancement opportunity.
Why Pay Attention to Employee Turnover?
In addition to the cost of lost productivity while the position is empty and the cost of hiring and onboarding new employees, there are also other reasons why employee turnover matters. It can impact the productivity and the morale of the team that is still there. This leads to less efficiency, lost revenue, and maybe even more turnover. Another cost is also the skills, relationships, and knowledge you lose with the employee leaving. Now you must start fresh with a new employee. You also lose any potential value the employee could have brought to the company, especially as it relates to succession planning. Turnover can also have a broader impact on your company’s brand. Former and current employees can be valuable ambassadors for your company or they will share negative experiences with their professional and online network, putting your brand at risk.
What You Can Do about Employee Turnover?
Your hiring, onboarding, and management practices can help address employee turnover. When hiring, it’s crucial to find the right people who are in alignment with your mission, culture, and values. You also need to find the right people for the job, but if they aren’t a match for the company, they will soon disengage. Employees that go through a structured onboarding process will be more likely to stay with the company. A well-designed onboarding program helps increase engagement and makes new members feel like a part of the team. It can also reassure your team that you are committed to providing them with the right resources and training needed to be successful. For management to be successful, try focusing on prioritizing supervisory relationships in the organization and managers should treat every employee with respect, regardless of position. Build trust with staff by keeping promises and sharing information when you can. Offer opportunities to use skills and contribute to the success of the company.