How to Address High Employee Turnover Rates
Employee turnover is a term that’s familiar to every business, ours included.
While it’s inevitable that employees come and go, it can be costly to deal with high turnover rates -- it can take quite a significant amount of time and resources to find, train, and also retain a replacement.
This is why it’s best for businesses to manage their employee turnover rate as much as possible.
Read on as we discuss strategies and ways to address this below.
Hire the right fit
The key to retaining employees starts with hiring the right fit for your team.
Of course, you’ll likely choose candidates based on skills that match the job you’re looking to fill. However, hiring the right person for the job involves more than just looking at their skill sets.
For a start, ask yourself if the employee will be able to fit into your business culture and the team they will be a part of. This is important to ensure that a new hire is suitable for your company.
One way to find out if your candidates are a potential match is to find out how he reacts in certain scenarios. You can do this by asking scenario-based questions during the interview stages or even through a written assignment, which can give you a good gauge of your candidate’s personality and thought process.
Also be sure to share about the company’s culture with them. If your potential candidate doesn’t seem to fit well with your working environment, it’s possible that they may struggle to settle in or get along with their co-workers, regardless of their impressive technical skills.
Offer competitive pay and benefits
People want to feel valued, and this value is often derived from the compensation package they’re offered from their place of employment.
It’s best to do some market research to determine the median salary for the job scope you’re hiring for. You can begin by finding out what your competitors are paying.
However, to retain the best employees, it might not be enough to just give them a paycheck at the end of every month.
Some companies opt to provide incentives such as free childcare, flexible hours, or even a company phone. These benefits don’t always need to be in the form of tangible goods either. Adding wellness benefits such as gym memberships, or health and dental insurance will definitely raise employee morale.
By offering competitive benefits, you’re showing your employees that they’re valued, and in return they may go the extra mile for you and your company.
Provide room for development and growth
If employees feel that they’re stagnant or have hit a plateau in their current roles, it may cause them to look to other companies where they can advance in their careers.
Showing employees a projected career path and providing the resources to equip them to upskill themselves gives them a sense of direction and purpose. This will help motivate them to keep working towards their career goals within your company.
Have meaningful performance reviews
Often, managers have performance reviews just for the sake of it because it’s required by the company’s policy.
However, appraisals and reviews shouldn’t be approached this way. If performance reviews are done well, it benefits not only the company but the employees’ growth and motivations as well.
Use this time to increase trust and fortify relationships with employees. It also provides regular opportunities for alignment between managers and employees on what is expected from them to move to the next step of their career development.
To make performance reviews productive and stress-free for both parties, consider an automated performance appraisal system such as Adaptive Pay’s e-appraisal module. It’s a cloud-based HR system that comes with customisable templates and KPIs, facilitating a simple, flexible, and transparent appraisal process between your employees and the management.
Roster adequately to prevent overtime
For roles that may require the scheduling of staff shifts, such as in the food and beverage industry, ensure that sufficient staff is rostered to prevent employees from having to work overtime as much as possible.
Adaptive Pay’s e-attendance module is perfect for tracking the attendance of rostered employees, as the system generates attendance reports automatically. It’s even integrated with the payroll system, automatically calculating wages based on each employee’s hours worked!
Build a great working environment with Adaptive Pay
While employee turnover is to be expected, you can take steps to reduce it by providing a conducive workplace environment where employees feel encouraged to stay.
But with the growing trend of people working remotely, one may ask: how do you provide a good working environment for these employees?
While physical proximity may not be something you can help in these times, you can make working from home a comfortable and efficient experience by using an automated HR tool. That way you can still perform the day-to-day HR tasks despite not being in an office.
Adaptive Pay is a cloud-based, all-in-one HR management system that simplifies HR processes for your business. It provides a fast, seamless, and effective way to maintain company policies, which can help in addressing high employee turnover rates.
When processes like leave application and staff rostering are automated, the company has more time to create an employee-centric culture in the workplace, ultimately bringing success and happiness to both employees and the company.
If you’d like to learn more about how our HRMS can be implemented for your business, contact us for a free demo today.