As employees quit their jobs, ask for honest reasons why they’re leaving. If you can determine the cause for high turnover, you may be able to prevent job loss. If former employees aren’t forthcoming with you since you were their boss, consider enlisting human resources to conduct an exit interview. Ask what about their job made them want to leave. For instance, if it the deciding factor was long workdays, consider reducing the amount of hours for employees on the project or hiring an extra hand. Listen to Current Employee Complaints
Ask current employees how they feel about the turnover on the project. Many may feel like the project is getting muddled or slowed down since so many employees are leaving. Since new hires don’t have experience with the project, there could be stress on current employees who feel they have to keep training new people. Listening to employees and understanding their problems is one of the best ways to reduce employee conflict. Listen to their opinions on how the project could be improved in terms of staff turnover. Reorganize Project Employees
Project managers run the project as a whole and delegate tasks to employees working to complete the assignment. If you hire new employees when there’s turnover for the project manager role, this can cause a lot of conflict and may lead to delays. If the turnover is presenting a problem, promote a temporary replacement from within. Choose someone to take over the project manager position who already knows the project, timeline, milestones and what is at stake. This is especially essential as the project nears completion. Create a Project Overview
Build a comprehensive overview of the project to give to all new hires. List the expected timeline for all milestones so everyone knows when certain aspects are due. Also list the duties of each member of the team and what is expected of them. Have new hires study the guide so they can jump in with coworkers in the middle of the project. This should waylay any concerns current employees may have with the effectiveness of newcomers. Sponsored Links Interview candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers and co-workers. Get creative when necessary with benefits, flexible work schedules and bonus structures. Recognition and praise are a cost-effective way to maintain a happy, productive work force. Experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. And churn can damage morale among remaining employees.
Here are some ways to lower turnover in your workplace:
– Hiring the right people from the start, most experts agree, is the single best way to reduce employee turnover. Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers and co-workers.
– Setting the right compensation and benefits is important too. Work with human resources to get current data on industry pay packages, and get creative when necessary with benefits, flexible work schedules and bonus structures.
– Review compensation and benefits packages at least annually. Pay attention to trends in the marketplace and have HR update you.
– Pay attention to employees’ personal needs and offer more flexibility where you can. Consider offering telecommuting, compressed schedules or on-site or back-up day care.
– Bolster employees’ engagement. Employees need social interaction and a rewarding work environment. They need respect and recognition from managers, and a challenging position with room to learn and move up.
– Managers often overlook how important a positive work environment is for staffers, and how far meaningful recognition and praise from managers can go to achieve that. Awards, recognition and praise might just be the single most cost-effective way to maintain a happy, productive work force.
Simple emails of praise at the completion of a project, monthly memos outlining achievements of your team to the wider division, and peer-recognition programs are all ways to inject some positive feedback into a workforce. Also, consider reporting accomplishments up the chain. A thank you note to the employee is good. Copying higher-ups makes that note even more effective.
To make it easier to identify accomplishments, ask your team for weekly or monthly updates of their achievements. Ask for specific numbers, examples or emails of praise from co-workers or customers. When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be up to 150% of the employees’ remuneration package. There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale. – Outline challenging, clear career paths. Employees want to know where they could be headed and how they can get there. Annual reviews or midyear check-ins are one obvious venue for these discussion, but you should also encourage workers to come to you with career questions and wishes throughout the year. In human resources context, turnover or staff turnover or labour turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are “how long employees tend to stay” or “the rate of traffic through the revolving door”.
Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company’s productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments, during the same period the Leisure and Hospitality sector experienced an average annual rate of 74. Unskilled positions often have high turnover, and employees can generally be replaced without the organization or business incurring any loss of performance. The ease of replacing these employees provides little incentive to employers to offer generous employment contracts; conversely, contracts may strongly favour the employer and lead to increased turnover as employees seek, and eventually find, more favorable employment.
However, high turnover rates of skilled professionals can pose as a risk to the organization due to the human capital loss in the form of skills, training, and knowledge. Notably, the specialization of skilled professionals makes them more likely to be re-employed within the same industry by a competitor. Therefore, turnover of these individuals incurs both replacement costs to the organization as well as resulting in a competitive disadvantage to the business.6%. High turnover often means that employees are unhappy with the work or compensation, but it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory performance (due to unrealistic expectations, inappropriate processes or tools, or poor candidate screening). The lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict with the management have been cited as predictors of high turnover.
Low turnover indicates that none of the above is true: employees are satisfied, healthy and safe, and their performance is satisfactory to the employer. However, the predictors of low turnover may sometimes differ than those of high turnover. Aside from the fore-mentioned career opportunities, salary, corporate culture, management’s recognition, and a comfortable workplace seem to impact employees’ decision to stay with their employer. Employees are important in any running of a business; without them the business would be unsuccessful. However, more and more employers today are finding that employees remain for approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics.
The Employment Policy Foundation states that it costs a company an average of $15,000 per employee, which includes separation costs, including paperwork, unemployment; vacancy costs, including overtime or temporary employees; and replacement costs including advertisement, interview time, relocation, training, and decreased productivity when colleagues depart. Providing a stimulating workplace environment, which fosters happy, motivated and empowered individuals, lowers employee turnover and absentee rates. Promoting a work environment that fosters personal and professional growth promotes harmony and encouragement on all levels, so the effects are felt company wide.
Continual training and reinforcement develops a work force that is competent, consistent, competitive, effective and efficient. Beginning on the first day of work, providing the individual with the necessary skills to perform their job is important. Before the first day, it is important the interview and hiring process expose new hires to an explanation of the company, so individuals know whether the job is their best choice. Networking and strategizing within the company provides ongoing performance management and helps build relationships among co-workers. It is also important to motivate employees to focus on customer success, profitable growth and the company well-being . Employers can keep their employees informed and involved by including them in future plans, new purchases, policy changes, as well as introducing new employees to the employees who have gone above and beyond in meetings. Early engagement and engagement along the way, shows employees they are valuable through information or recognition rewards, making them feel included.[12Models
Over the years there have been thousands of research articles exploring the various aspects of turnover, and in due course several models of employee turnover have been promulgated. The first model and by far the one attaining most attention from researcher, was put forward in 1958 by March & Simon. After this model there have been several efforts to extend the concept. Since 1958 the following models of employee turnover have been published.
March and Simon (1958) Process Model of Turnover
Porter & Steers (1973) Met Expectations Model
Price (1977) Causal Model of Turnover
Mobley (1977) Intermediate Linkages Model
Hom and Griffeth (1991) Alternative Linkages Model of Turnover Whitmore (1979) Inverse Gaussian Model for Labour Turnover Steers and
Mowday (1981) Turnover Model
Sheridan & Abelson (1983) Cusp Catastrophe Model of Employee Turnover Jackofsky (1984) Integrated Process Model
Lee et al. (1991) Unfolding Model of Voluntary Employee Turnover Aquino et al. (1997) Referent Cognitions Model
Mitchell & Lee (2001) Job Embeddedness Model
^ “Job Openings and Labor Turnover Survey”. Bureau of Labor Statistics. 2008. Retrieved 2009-01-21. ^ U.S. Department of Labor, Bureau of Labor Statistics, total non-farming separations (not seasonally adjusted), Series ID JTU00000000TSR, http://data.bls.gov/cgi-bin/surveymost?jt “Job Openings and Labor Turnover Survey “]