Finding and retaining employees is vital in today’s working world. According to the Bureau of Labor Statistics (https://www.bls.gov), the number of U.S. employees voluntarily leaving their jobs has significantly increased in the last year, especially in industries like professional and business services such as manufacturing, and retail.
There are a few things that happen financially with employee turnover:
- Lower morale within the team and among employees
- Decreased overall productivity and presents delays
- Increased financial costs to hire new employees
Josh Bersin from Deloitte_______ breaks down the costs of hiring a new, starting with the cost to recruit and onboard to the cost to train retain good employees. Most organizations do not actually track these costs by actions, mainly because they do not have a system to do so. The cost of turnover should not be a mystery. In order to really focus on decreasing turnover you need to first focus on recruiting and the hiring process. You want to bring on team members that will not only perform well but will also stay connected and engaged with the organization long term through alignment to the company’s mission and values.
Other than just the financial aspect of what employee turnover can cost, you have to look at the true costs of overall turnover. Often times when there is high turnover there is loss in productivity and missed deadlines. The team witnesses the turnover and that, in turn, causes a decrease in morale within the organization. Additionally, you are resort to asking the remaining employees to pick up the duties of the lost employees. If you want to reduce your turnover and maintain a work environment that your employees want to return to on a daily basis then you need to understand the pain points of your organization through the eyes of your employees. One of the main points to keep in mind is the workload of each employee. Working overtime and on weekends for any extended period of time will, more so than not, cause employee burnout. Employees sometimes will begin to resent the company as they start to miss out on life/ personal time with family and friends. Safety issues due to fatigue and increased mistakes in the workplace due to lack of focus may start to become an issue as well. These pain points all lead back to culture and employee turnover.
Providing a balanced, well nurtured environment to work in is essentially important to the overall health of any organization. Well balanced environments work but let’s not forget about recognition. Employees like to be recognized for their hard work. So, take the time to notice. If you want to learn more about your organization, ASK your employees and take the time to LISTEN. Communicate with your team and communicate often. Recognize effort and show you care through feedback and programs that support your company’s mission and values.
Overall, when you reduce turnover through a well-balanced work environment, you reduce cost. Create a work culture that promotes growth and appreciation for work well done. Remember, people appreciate people who appreciate people.