Increase Employee Satisfaction, Decrease Turnover.
Given the high cost of turnover, effectively managing employee satisfaction can significantly impact a business and its bottom line. Turnover leads to lost time, energy and productivity, with replacement cost estimates ranging from 50 to 200% of an employee’s annual salary. This estimate includes the selection-phase costs of publicizing the position, time spent interviewing, travel and/or relocation, signing bonuses, and pre-hiring assessments. The costs mount when you on-board a new hire, including training materials and personnel, technology, benefits set up, and more. In short, employee satisfaction and maintaining a low turnover rate should be key initiatives for every business.
Reasons for Turnover
Unexpected turnover has likely affected most businesses at some point. Why do employees choose to leave? By understanding the motives behind resignations, employers can develop strategies to control costly, disruptive turnover, and build employee satisfaction. The most common concerns cited by job seekers to recruiters generally fall into the following four categories:
Strategies for Addressing Turnover
As an employer, it’s critical to know if your employees are voicing concerns about the firm or their place in it. The following tips and tools can help alleviate or prevent many of the factors that lead to employee discontent:
The companies with the most success in retaining employees avoid being too rigid and inflexible. They find creative ways to address employee concerns while still accomplishing business objectives. For example, reassign clients to even out travel and overtime, use a contract resource to reduce your employees’ overtime and routine work, or use job-sharing to help people balance their work and family responsibilities.