As per Gartner’s Global Talent Monitor, 26.6% of the workforce across the globe is actively seeking a new job. When an employee leaves, it becomes a costly affair for the company because they need to find a new resource and train him/her both of which involve considerable cost and effort.
Undeniably, it is extremely important for a business to take measures in order to control its employee attrition. If your organization is facing a high attrition rate you need to take a look at your processes and see how you can fix it. And fixable it is! As per Gallup, attrition or voluntary turnover is costing US companies as much as a trillion dollars! Here are some tips to help you control it.
Pay competitive benefits and perks
The primary reason for an employee to work is to earn. No matter how loyal your employees are, if their financial needs are not met, they will look out for alternatives and leave you eventually. As per Gartner’s report, compensation has consistently been a top reason for employees to leave for a few years. Hence, perks and benefits should be at par with the industry.
It should be lucrative enough so that your employees don’t leave you for your competitors. Benefits and perks are not just restricted to a handsome salary package. Paid time off, stock options in the company, retirement benefits, remote work opportunity, daycare services for the employees’ children all add up to benefits and perks.
All these contribute towards improving your employee value proposition (EVP), a term coined by Gartner. Tap each of the options carefully and see what works best for the interest of the company and your employees.
Find the reason
Whether it’s a bad manager, poor working conditions, or salary issues, attrition is common. Having said that if you think the number is alarmingly high, delve into the situation to figure out the root cause and take necessary actions before it starts affecting your reputation. Conducting an elaborate exit interview is one way to find the cause of the attrition.
Recruit the right candidate
Finding the right candidate is the first measure you can take to control employee attrition. Don’t just look for the right skill and domain knowledge the person is bringing on the table, but also assess the behavior of the candidate. While doing so, be open about your own organization’s culture. It gives the candidate a chance to judge if your company is suitable for him or her.
If a candidate doesn’t like the workplace environment, he/she will be unhappy and will leave eventually. So, ensure you have the right candidate who is open and flexible and can gel in with the organization culture before he/she is taken on board.
Millennials say flexibility is more important than salary. Flexibility is an important parameter that employees closely consider while choosing a new job. Flexible work schedules help employees to better manage their work-life balance.
While flexibility is not always feasible for many businesses, it should be practiced whenever there is a scope for it. Offering remote working options, flexible timing, ability to choose day-offs, all help in offering flexibility. When employees can live their life outside work better, they are usually content and less distracted at work.
Provide a positive workplace environment
Employees spend a lot of time at their workplace. Invest in a workplace where your employees would like to come back every day. Have space for collaboration, socialization, and fun. When your workplace is safe, convenient, and comfortable, employees would love coming to work and love what they do.
Improve employee engagement
Keeping employees engaged in the workplace is challenging, but crucial too. It is important that your employees feel connected to the workplace if you are hoping to tackle attrition. From having regular fun activities and team bonding sessions to the CEO’s annual townhall and leadership All-Hands event, everything counts when it comes to keeping your employees engaged at the workplace.
Appreciating employees for their good work matters a lot. Show them they are valued and their hard work is recognized. Make it specific, make it social, and don’t forget to reward them. In return, you will be rewarded too – with their loyalty.
Employee attrition is a given nature in any organization and some of it is beyond your control. However, some reasons for attrition are common across companies. Be prepared to tackle those and keep your best talents from leaving you.