Attracting and retaining is one of the biggest issues companies face. The most successful organizations recognize the value of their workforce and are constantly looking for strategies that will help them hold onto top performers. Show
Today, increasing labor costs and employee turnover are lowering the profits of businesses. If that trend continues, corporate profitability in the U.S. will hit lows not seen since the 1980s, according to a 2020 report by The Conference Board. Employee turnover is a measure of how frequently employees leave a business, and is typically measured on a monthly, quarterly and annual basis. Turnover rates cover voluntary and involuntary turnover. In other words, it counts people who left the company to pursue new jobs or educational opportunities, for personal reasons or to retire (voluntary), as well as those who the company terminated for performance or behavior violations or as part of broader layoffs (involuntary). What qualifies as a healthy turnover rate will vary widely by industry. The overall annual turnover rate in the U.S. varies depending on the source, but most put it at somewhere between 10% and 20%. Turnover costs the U.S. economy $1 trillion every year, and replacing an individual employee can bring a bill that’s anywhere from one-half to two times the person’s annual salary, according to Gallup. What Causes Employee Turnover?The many studies that examine turnover each year all point to the same causes of employee departure, even if the order of them varies. Employees overwhelmingly leave for more money and better benefits, to progress in their careers, to gain a better work-life balance and because their manager is ineffective. Many of these shortcomings could be classified under company culture, which can include a company’s values, career opportunities, compensation and benefits, work-life balance and the effect of senior leadership. Retention can be predicted by culture, pay and employees remaining in the same role for too long. Why Is Reducing Employee Turnover Important?Reducing employee turnover impacts company profitability. Having enough people with the right skills is obviously crucial to delivering on business plans and objectives. Additionally, finding the right people is getting more challenging (and costly). Once businesses identify the right candidates, getting them to actually sign on can prove costly and time-consuming. It’s taking longer to hire people, and most organizations have increased pay for salaried roles while half of others have increased starting pay for hourly roles. These rising costs offer all the more incentive to cut down on turnover. With all that in mind, what can you do to keep high performers and contributors with your business? Much employee turnover is preventable, and small changes in career development opportunities, work-life balance, manager relationships, compensation and overall wellbeing can make a big difference.
How Can HR Software Help?Organizations may choose to implement software with the singular goal of better understanding retention and trying to reduce it. But making a long-term impact on turnover requires a complete view of talent management processes so HR can optimize the entire employee experience, from recruiting to onboarding to performance management and development through succession planning and transitioning. A cloud-based HR system integrated with finance, CRM and/or project management tools brings all information together to analyze talent trends, track performance to help employees reach key goals and enables them to collaborate with managers to complete objectives and gain recognition when they do. This software can support a skills-gap analysis to develop relevant training programs and identify candidates who may be a good fit to encourage career development and progression. Organizations can start small, such as a tool for peer-to-peer recognition that sits within the same system they use for their day-to-day work. It all makes for more engaged employees and an improved employee experience that not only facilitates higher financial and employee performance, but attracts top performers and convinces them to stay. Referrals from current employees are a key pipeline for new hires, so turnover reduction strategies can both keep existing workers happy and increase the chances of pulling in their talented connections. How can strong communication skills lead to lower employee turnover?Whenever there is good communication in a business, the employees are informed in advance. Besides an employee feels engaged with roles they perform. This will encourage them to continue working, reducing the turnover rate.
How does communication affect employee turnover?Employees can lose enthusiasm or passion which sometimes leads them to questioning the importance of their work. Monotony and confusion experienced during meetings and presentations due to lack of well communicated presentations, only adds to this reduced morale. Over time, this can lead to high employee turnover.
What is the key reason why strong communication skills are important for your career?Communication is vital to both team and individual success in the workplace. Clear communication at work can help you avoid misunderstandings, develop strong relationships with your coworkers and establish yourself as a valuable member of the team.
How does effective communication limit Labour turnover?Communicating your company's values, mission, and vision articulately is a powerful way to lower employee turnover with better internal communication. That's because employees tend to feel motivated and happy to continue working when they clearly understand their organizations' values, mission, and vision.
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