Ways to Avoid Employee Turnover
December 7, 2016
It’s already December which normally presents an opportunity and danger of hiring new talent or losing good staff. Traditionally this time of the year sees IES, one of the top executive search firms, flooded with resumes of candidates looking for greener pastures and requirements from clients looking to replace many important and senior jobs. How is your staff retention rate this year compared to last year’s? Does your recruitment department notice an improvement or a decline?
What is Employee Attrition?
This refers to the gradual loss of employees over time. A high attrition rate in an organization is generally a problem and will inevitably raise the costs incurred for recruiting and training new staff to take the place of those who have left. Thus, the saying, “it is more cost effective to retain than to replace and to re-train employees…”
What Are The Top Causes of Employees Leaving?
The Willis Towers Watson 2015 Total Rewards Survey results below show the reasons why staff leave:
70% better offer/compensation & benefits at a different company
32% relocation or family migration/personal or family related issues
29% relationship with superiors/management/leadership
15% health-related issues
14% work-life balance
Source: Willis Towers Watson 2015 Total Rewards Survey
Flowing coffee, iced tea, doughnuts in the pantry or free lunch?
The popular saying “Culture ate Strategy for Lunch” has been thrown around a lot in the past few years with the emergence of ‘culture-think’, a new way of harnessing the power of keeping employees happy–promoting the total “employee experience”.
Compensation and Benefits
Making salary adjustments part of the annual budget helps in granting promotions, performance-based rewards and allowances to performing employees to show appreciation. According to the World Economic Forum Global Competitiveness Report 2015-2016, The Philippines scored 7.06 in the competitiveness index, indicating the highest extent that pay is related to employee productivity. [1 = not at all; 7 = to a great extent]; in the same report, the country scored high in the index component: 7.08 capacity of the country to retain talent, saying that, “the best and brightest stay and pursue opportunities in the country.”
Training existing staff and offering them a career path in the organization helps to retain staff. Apart from the knowledge and professional skills enhancement and sense of achievement this provides, employees who are mentored or coached actively by their superiors are more engaged and invested in the success of the company.
Although this other common issue is harder to anticipate, a large part of an employee’s decision in making a life-changing move to another location or another country may be due to a recent need for an increase in compensation — funding children’s education, paying for a house or pursuing higher-level education. Conducting frequent interviews to stay updated on employees’ major life events allow for an open dialogue about near-term and mid-term plans that can help HR be more proactive in planning for promotions, successions and/or replacements.
Companies who make investments in developing their employees across all levels are in a better position to compete in acquiring new business and keeping existing clients. Frontline staff are managed by supervisory and management staff. Creating a collaborative and mentoring environment reduces conflicts, power-plays, seniority complex and overall workplace politics. Efficient issue resolution plays an important role in ensuring that staff and management feel valued and heard by their superiors. Productivity and morale are kept up by keeping regular open dialogue sessions with employees.
Health and Wellness Programs
While providing additional health and hospitalization/medical care benefits is important, companies should also promote a wellness culture among its employees. Preventing work-related health problems also help companies reduce the costs associated with unhealthy employees. Routine annual physical examinations, healthy lifestyle & food options, sufficient rest and relaxation, workplace stress and anger management workshops and creative activities can be implemented in a fun, engaging and gamified method:
- a daily team ‘creative walk’
- a weekly running meet-up
- a ‘fruit-a-day campaign’
- ‘name-your-team’s-salad’ event
- The Biggest Loser contest
Work-life Balance – The shift towards flexible work hours and work-from home options has risen over the past two years. Recent developments in technology and tools have made work and productivity independent of geographic locations. A July 27, 2015 Business Mirror article, “Work-life balance is Pinoy’s top concern in next six months–Nielsen survey shows” indicates that “Based on the Consumer Confidence Index released by Nielsen, the top 3 concerns of Filipinos are work-life balance, job security and health in the next six months. Compared to its neighbors in Southeast Asia, Filipinos were the only ones that cited work-life balance as their top concern.”
Meanwhile, a recent survey by Deloitte “The 2016 Deloitte Millennial Survey Winning over the next generation of leaders” also showed that work-life balance is a primary factor in determining companies to work for.
Indeed, the workplace of the future has shifted the bargaining power onto the hands of the workforce. Weak staff staying power is an effect more than a cause of high attrition rates. Companies that invest in creating a healthy workplace culture that is aligned with current workforce motivations become icons in their respective domains. It is no longer an either-or argument. It has become the new HR manifesto: employee retention IS better business.
IES, a top executive search firm, identifies, engages and attracts the key senior talents who will generate the most lasting value for your business. Contact us and let’s talk about it today!