Can’t understand why your business is experiencing a high staff turnover rate?
As an employer, trying to guess why your top performers are unexpectedly handing in their notices on a regular basis is almost impossible at times.
The issue is, departing employees costs your business money, causes unnecessary stress on the HR department and often disturbs productivity levels, to name a few.
In a recent survey, the average UK staff turnover rate can exceed 75% in the first year of employment in London alone.
That’s a worrying revelation.
The question is; what’s the problem?
To help you get to the bottom of the problem and rectify it accordingly, I’ve put together a few top tips.
How to predict staff turnover
In 2019, a major tech company announced that they’ve found a way of using artificial intelligence (AI) to predict which of their employees will voluntarily leave their company within the next 12 months.
For most businesses, investing in this kind of innovative technology is simply unrealistic.
In fact, to easily predict which of your employees might leave, it’s a case of asking them two simple questions:
1. Would you be willing to discuss a career opportunity if it bettered your current situation/role?
2. Are you currently looking for another job – if so, how long have you been looking for?
Generally speaking, you should find at least 90% of employees will say yes to the first question and no to the second.
While it might not be conclusive, this does tell you how many of your team are not completely satisfied with their current role – however small it may be.
If they have a seed of doubt, it can easily grow.
This is usually why you’ll find people ‘unexpectedly’ telling you that they’re leaving out of the blue.
So, how do you prevent this from happening?
Create a satisfaction survey
Putting together a survey is simple but very effective.
You should look to include questions like:
– Are you happy with your manager? Do you think that they are doing a good job?
– Would you say that you’re getting a balanced mix of work to keep things exciting? Or do you find your current role quite repetitive?
– Has there been a negative change in your company’s culture? If so, how has it impacted yourself?
– Are you being offered enough training and opportunities to progress?
Once you’ve got the answers to these questions, you’ll be able to pinpoint exactly what areas you need to address with each individual.
Rectify this early on and you’ll create a more happy working environment for your employees.
Check each employees’ growth
Don’t just stop at surveys, analyse the facts and figures for yourself as well.
Usually, those employees who are “at risk” of leaving are the ones that:
– Haven’t had their job title changed in over 12 months
– Haven’t received a pay rise in over 12 months
– Received top feedback in their last two performance reviews
– Have to commute over half an hour to get to work
– Experienced a drastic change in their life within the past 12 months
If you don’t know the answers to any of these statements, you need to take more time to get to know your employees.
The positive thing to remember is that all five of these can be easily resolved before it gets to the point of no return for the employee.
For example, if an individual is experiencing something bad in their life, give them more time off or provide one-on-one counselling.
Carry out exit interviews
If it’s too late to sort things out with a certain employee, you should use their departure as an opportunity to learn about where you went wrong.
Exit interviews are free and will often provide you with honest feedback from those who know your business best.
You can gain valuable insights into the day-to-day working environment and the culture, which you may not see yourself day in, day out.
This free feedback will then give you a chance to find a solution to any problems and therefore, reduce the likelihood of other employees following suit.
Exit interviews also bring positive closure to the employee/employer relationship too, so you are less likely to receive poor feedback on Glassdoor afterwards.
To read more about this, check out our previous blog: ‘4 Reasons Why You Should Carry Out Exit Interviews’.
Things to remember
While this blog isn’t designed to work as a crystal ball to predict staff turnover, the tips highlighted can certainly help you gauge the current situation of your employees.
Ultimately, you need to open up a channel of communication between senior staff and employees.
Being proactive instead of reactive will enable you to make necessary changes and reduce the odds of any seeds of dissatisfaction from growing.
Everybody will always have concerns, it’s just a fact of life. So, as a top employer, just be open-minded enough to listen and help them along the way.
By implementing this philosophy, you’ll be surprised by how many people decide to stay with you on a long-term basis.
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