Employees are, it goes without saying, invaluable: they’re the lifeline of a business. So when a trained and nurtured employee leaves, the company has suffered a considerable loss.

Allegis Group recently found that 83% of employers believe attracting and retaining talent is a growing challenge, so it is clear that initiatives to improve retention should be at the fore for many.

A certain level of turnover will, of course, always exist within an organisation - but risks of high levels should be mitigated wherever possible.

Why?

High employee turnover has an impact on employee wellbeing, putting a dent in morale and company culture. Seeing people coming and going fairly often contributes to a detached working environment - whether from home or in the office.

It can also have significant financial costs due to the price of hiring and onboarding. The time spent replacing lost talent can in turn contribute to a lack of motivation and engagement.

The reasons for high turnover rates can vary: your competitors may be offering more, or perhaps the increase in solopreneurship is partly to blame, for example.

While high turnover isn’t necessarily indicative of a ‘bad’ place to work, it can have negative effects on your company culture - and the impact of these perpetuate themselves. For example, if high employee turnover dampens morale, it follows that this lower morale will increase turnover… and etc. It can often become a vicious cycle.

Focus on retention

To lower employee turnover, it’s important to put an emphasis on retention efforts. Here are some things to consider:

1. Who are you hiring? If you’re consistently hiring entry-level, minimum wage employees with no intention of staying put, you shouldn’t be surprised to find them coming and going. This isn’t to say you shouldn’t hire entry-level employees, though. These people are often straight out of education and ready to get stuck in - and then they face the brick wall of ‘experience necessary’. This brings us onto the next point…
2. Provide opportunities for growth and define roles clearly. If your employees can’t see a way forward within your business, it doesn’t bode well for retention. Invest in employee training (cheaper in the long run to have a proper process in place for fewer employees) and promise a career path wherever possible.
3. Be transparent and accessible. This doesn’t mean you have to reveal everyone’s wage brackets, but it’s certainly an idea. We also refer here to leaders and managers - transparency is key. Be honest with your employees, and make sure they know that their work aligns with larger goals and how. Deloitte (p.15) recently found that millennials want a stronger sense of individual responsibility and to feel a part of the larger whole.
4. How do you practice recognition? Giving credit where it’s due is absolutely vital for employee motivation. Employees shouldn’t feel they have to ask how they are doing or if you’re happy with their work - they should already know. This should be reflected in the form of praise and financial compensation; if employees consistently get good feedback but feel you aren’t open to paying them more, they may look to competitors that are.

Find the right employees in the first place

Perhaps your retention issue boils down to this: a bad fit! Prospective employees should not only be able to fulfill the role’s requirements, but they should be right for your business and company culture.

Find the right hire the first time with Concentric Recruitment. We’ve made it our mission to have a positive impact on the growth and success of great tech and digital companies, while working with candidates to help them reach their full potential.

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