You have to expect some employee turnover in any business regardless of the industry in which you operate. Despite the reality of employees constantly leaving, your success still depends on you retaining as many of your best employees as possible.
What is “employee turnover?”
A good definition of employee turnover is the process of employees leaving and being replaced. A company with a high employee turnover rate sees workers leave and new ones enter at a relatively fast pace. The “leaving” here can mean being fired or being laid off. Workers may also leave voluntarily via retirement or resignation.
To evaluate your company’s turnover rate, you will need to factor in the nature of your industry. The normal turnover rate in some industries is higher than in others.
The Effects of a High Employee Turnover Rate
1. Training Costs
Recruitment and training are expensive. If an organization’s employee turnover rate is high, it means that more is spent bringing in new candidates and training new hires than would be if employees were not leaving so quickly.
2. Morale
A high turnover rate doesn’t just affect the employees who leave. It can negatively impact morale among the ones who remain too. If employees begin to feel undervalued by management, they may lose confidence in their employer and enthusiasm for their job.
3. Reputation
High turnover over a long enough time directly affects the ability to recruit. If employees are constantly leaving, it is a sign of high dissatisfaction among a company’s workforce. If an organization has a reputation for dissatisfied employees, it will have a hard time attracting new workers, especially talented ones. Employee turnover can impact reputation in more than one way. The difficulty of recruiting top talent because of a high turnover rate can eventually affect the quality of a business’s products or services.
4. Loss of Clients
A high turnover rate can lead to clients jumping ship. Employees who interact closely with clients may even take customers with them when they leave.
What to Do About High Employee Turnover
The first thing to do about high employee turnover is to determine what is causing it. Once you know the cause, you can implement solutions like:
1. Adjusting the Recruitment Process
Revise job descriptions to ensure that you get the right employees. Your job descriptions should be accurate so that new hires have realistic expectations and so that you find the right people for the job. Starting out with compatible workers — individuals who fit your values — is a big part of retaining them. With an accurate job description, your employees know what’s expected of them, which allows them to be immediately productive. If they have to learn what the role entails, it may take some time to hit maximum productivity.
2. Spend Time Onboarding
Once you have brought in the right candidates, you need to spend time and resources getting them ready. How you treat them as you induct them into your workforce will influence how they feel about the company for the rest of their time working there. If you make them aware that you value them from the start, they may develop an attachment and sense of loyalty.
3. Pay Attention to Feedback
Good communication between management and the rest of the workforce is considered one of the essential elements of successful organizations. Ask for feedback from employees, then listen to and address their concerns. For more info, read our article on how to drive employee satisfaction.
To reduce employee turnover, you have to make a long-term effort to implement the steps above. With the right strategy, it is possible to minimize employee turnover and retain your top talent for a long time.
5 Amazing Reasons to Use a Recruitment Agency
The hiring process is an uphill task that gets slippery at every turn. Picture this: before recruiting the best talent, you must attract viable candidates, engage them, and pick the best. The entire process also costs a pretty dime because the average toll of hiring one employee is just over $4,000. If you want to avoid spending ungodly amounts of time, energy, and resources and still attract top-notch talent, seek help from a reputable recruiting agency.
The sections below explain why using a recruitment agency is a splendid idea.
1. Access to top-tier candidates
Recruitment agencies dedicate their time to serving employers and job seekers. So, they often interact with top-tier candidates who may or may not be actively looking for employment.
Note that most coveted candidates are likely engaged elsewhere. That means they are unlikely to respond to adverts. Recruiting agencies are familiar with such professionals. Therefore, they can contact them at a moment’s notice and secure their services.
In addition, since recruiting agencies do this all day every day, they have all the tips required to select the best talents. That means they can use aspects like body language, attitude, experience, and deal-breakers to separate the wheat from the chaff.
2. Faster hiring
The hiring process can be slower than usual when using an in-house team. Some of the issues that encourage lagging recruitment include narrowly defined needs, large candidate pools, inefficient interviewing, and delayed decision-making.
Recruiting agencies are familiar with most of these challenges. They deal with them regularly and have everything in their arsenal required to facilitate faster hiring.
For instance, a reputable agency can use referrals to source new talent rather than advertise the position and vet countless applicants. Moreover, they can leverage the vast network of connections and talent pool on their database, speeding up recruitment.
3. Extensive recruitment knowledge
Recruitment agencies employ professionals that specialize in one area: talent acquisition. These people are familiar with numerous technical roles and know the skills to look for in viable candidates.
Knowledgeable recruitment agents can use their expertise to create outstanding job adverts, promote your positions on job boards, and filter through all applications.
And to make things better, recruitment agencies often employ recruiters specializing in specific industries. Therefore, if, for instance, your organization needs accounts, an agency can use experts that know all there is to know about accounting, salaries, expectations, etc.
4. Save time and money
Hiring new employees comes with considerable expenses. First, if you use an in-house team, expect to pay recruiters, job board fees, and screening costs. Don’t forget that you’ll need to host recruitment events and fairs, which can be expensive in terms of rent and catering.
On top of financial expenses, an internal recruitment team may spend tons of time spotting suitable candidates.
Partner with an established recruitment agency if you want to save time and money. The service provider will handle everything, including collecting resumes, checking references, and filtering job seekers.
5. Exploit job market insights
Job market insights change frequently, and most in-house recruiting teams often don’t have the time or inclination to keep up, but trustworthy agencies do. Experts use their resources to do several things, including recognizing upsell opportunities, generating new leads, and analyzing market trends.
Up-to-date market insights enable recruitment agencies to provide adequate staffing solutions and hiring strategies. Resume Spice has an amazing list of the best recruitment agencies in United State.
See also: How to Shortlist Candidates for a Job Interview