Employee turnover is a fact of business. Whether an employee leaves in a snit or whether she leaves for a better opportunity elsewhere, the cost to your company is at least dual-fold:
1) The cost of replacing a departing employee is estimated to be between 30-50 percent of her annual salary.
2) The hit to your company’s productivity can take a dive while one or more employees pick up the slack left by the departing employee until you’re able to hire her replacement.
Also, in the case where employee turnover is more like a churn, the morale of your remaining employees can take a huge hit, meaning they too soon could decide to leave your employ. After all, they could easily start thinking, “everyone else is.”
Here are some tips to help prevent excessive employee turnover.
1) Hire the right people from the start. Make sure you bring on board people who will fit in to your company culture. Pay them competitive wages. And then make sure you give them opportunities to stretch and grow. Do you have a career development program, skills training courses, tuition reimbursement? If not, seriously consider doing so.
2) Speaking of pay, develop a compensation package that includes competitive base pay and benefits as well as bonus and gain-sharing opportunities. Think about offering retention bonuses. Consider offering more paid time off, flex time and perhaps telecommuting options for those employees whose jobs could be done at home.
3) Maintain a true “open-door policy.” Don’t pay lip service to this concept. Instead you should actively seek employee input (and then listen to it). If you micro-manage, stop it. Do you promote from within? If not, start!
To help keep your productivity up while you’re searching for new employees to replace those who have left, consider going to a staffing service such as Pinnacle. We can provide workers to Winnipeg, Manitoba employers for temporary, temp-to-hire and direct-hire assignments. Our employees will be able to step in and be an asset to your company from the day they arrive. Contact us today.
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