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In the past, we’ve shared several ways to attract top talent [see here], however it is just as important to retain talent as it is to find it in the first place. It is more efficient to keep a quality employee than to recruit, train, and onboard a new worker of the same quality. Therefore, companies must anticipate impending shortages of overall talent and employees with needed competencies to stay ahead of the competition. A focus on reducing avoidable turnover makes sense for these reasons:
  1. It affects your customers
  2. It is costly
  3. It affects the performance of the company as a whole
  4. It can be challenging to find skilled employees, especially when the open positions need to be filed immediately
Proactively managing employee retention helps organizations thrive through good times and bad. Managers and company leaders should understand why employees leave to develop effective retention strategies. We have found that some of the contributing factors to employee turnover are:
  • Employee dissatisfaction. Managers should remember to check in with their employees and monitor workplace attitudes regularly so they can help employees feel satisfied with their work and role.
  • Better alternatives. Sometimes employees find better options elsewhere, even if they are not actively looking. Making sure the organization is competitive in terms of rewards, developmental opportunities, and quality of the work environment can help prevent workers from finding better options.
  • Following a plan. Many people have a personal plan and their future goals may cause them to leave their jobs. For example, if a company sees that workers leave because of family related plans, they should consider reevaluating their maternity leave and family friendly policies.
  • Leaving without a plan. Other times, employees might leave on impulse. Frequently this can be attributed to a recent action, for instance being pass over for a promotion or workplace conflict. Therefore, managers should keep track of work related issues that cause employees to leave and provide training to minimize those negative interactions.
Some additional predictors of turnover that should receive attention are:
  • Organizational commitment and job satisfaction
  • Quality of the employee-supervisor relationship
  • Role clarity
  • Job design
  • Workgroup cohesion
Now that we know some of the driving factors behind employee turnover, we can discuss ways to prevent losing employees. Make sure to check back for Part 2 to learn some best practices for increasing retention. Do you have questions about reducing employee turnover? If you need assistance with establishing a retention strategy or other human resource needs, contact us and check out our blog for more helpful resources.