20 ways to improve employee turnover and engagement!

“If you take care of your employees, they will take care of your customers who will take care of your customers”

A positive and motivated staff is an asset to your organization and its success. Employee turnover and retention are now one of the major concerns of the organizations now. Individuals have the tendency to leave organizations once trained and after spending certain time with the organizations for better opportunities. Even though it is no hidden fact that people tend to leave organizations sooner or later, yet organizations need to invest in improving employee turnover.

Need of an hour!

Hiring, training, and retaining employees is not an easy process. People are as an asset are appreciating in nature and not a depreciating asset. Any organization would want the employees to stay with them longer.

The image below indicates lifecycle of an employee in an organization.

Cost to value of an employee

Time being an important aspect, more the time is spent in an organization, it reaps greater benefits. More time an employee stays with an organization, they become more valuable. Loyal employees build high-performance companies. Employees are the first customers who need to be served well enough to the customers.

The cost the employee turnover includes costs of hiring, onboarding cost, learning curve, and cost of emotional attachment. The cost of finding and replacing a new employee with an old employee is very expensive. Numerous studies suggest it even to be around 200% of the annual salary. This includes direct and indirect costs. Direct costs include replacement and transition costs. Indirect costs include cost incurred due to loss of production, employee morale, and reduced performance levels. These costs also include the impact of turnover during hiring and training of a new employee.

Employee turnover is defined as the number of employees leaving an organization and are replaced by new employees. It is essential to measure it if you want to understand the reasons and cost associated with hiring processes. Employee turnover is of various kinds: voluntary, involuntary, functional, and dysfunctional. This can be understood by the following graph:

Types of employee turnover and retention

Why do employees leave?

Before really moving towards how to retain employee and improve the employee turnover, it is vital to understand the high staff turnover reasons.

Some of the reasons are related to the life event. For example, someone got married and shifted with the spouse or went back to study further. But, most of the reasons are under the control of the employer. Most of the employers do not stay in touch with what their employees are thinking. Some of the reasons why your employee has left or may leave in the future are following:

How to deal with employee turnover: Ways to reduce employee turnover

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