HR 101:Reducing Employee Turnover

“Regarding engagement, yes we need to pay people more – pay them more attention!” – a mantra that should be chanted by HR professionals worldwide. Every organization knows that its greatest assets are its people, and that a satisfied workforce is the fuel that feeds the fire of any successful organization. That being said, organizations pay close attention to their turnover rates, and are continuously looking for ways to reduce them.

Before attempting to solve this age-old problem that plagues every organization at some point, senior management needs to look into an employee’s motivation to leave their job. A recent survey published online shed some light on the reasons employees leave or join jobs.  Contrary to popular belief – it’s not all about the money! The survey found that the number one reason why people leave their jobs is that they see there is a lack of opportunities for advancement. We took into consideration employee’s motivations to leave their jobs and have come up with a list of ways organizations can reduce their turnover:

Hire the right people. It’s as simple as that – to reduce employee turnover, organizations need to make sure they’re hiring the right person for the job in the first place. This starts with an accurate job description, outlining the duties and responsibilities of the candidate and an effective recruitment process put in place. ¹

The number one reason people leave their jobs— lack of opportunities for career growth and advancement

Keep compensation and benefits current. Now, more than ever, organizations are fighting to retain their best talent, and a sure way to keep your employees satisfied is to make sure the compensation and benefits structures are aligned with the market pay, and take into consideration the employee’s growth and development. ²

“I’m helping to put a man on the moon”- Janitor at NASA’s response to President Kennedy’s question ‘what are you doing?’

Pay attention to engagement. An engaged employee is one whose relationship with    their organization is so strong that they see the organization’s success as their own. It all comes down to how much your employees care about the wellbeing of the organization and how connected they feel to the organization. The janitor at NASA is the perfect example of an engaged employee, and this little anecdote has become a classic for management professionals worldwide.

Share the vision. If you ask your employees to recite the company’s vision and mission statements, they can probably all do it – and perfectly too. The trick is – however, to find an employee who believes in the mission, and the way to do this is to create a culture where the employees feel like they are part of a greater cause. The result?  Employees willing to go that extra mile to make sure they achieve their collective vision.

  Set aggressive goals. Some employees join new companies is because they offer work that seems more challenging. It’s not only about retaining employees, but about retaining the right employees, and those are the ones who look forward to challenges that they can overcome, to grow the company. The more challenged an employee feels, the more motivated they are to improve on performance, and will be less likely to grow bored.

Remain in sync with your employees. Continuous communication and close coordination will strengthen the bond between a manager and his employees. Managers should take the time to sit 1:1 frequently with each employee, providing continuous feedback and support. That way, employees are given real-time feedback and can take proactive measures to improve their performance. Given that the second most common reason people leave their jobs is due to dissatisfaction with the leadership of senior management, this should be a top priority for organizations looking to reduce employee turnover.

“An environment that promotes collective group efforts and  innovation is one that will stand out among competitors.”

Build your employee experience. The fundamental rule of customer service: a happy customer is the one who keeps on coming back. Similarly, a happy employee is the one that stays. The best way to achieve this is to build an employee experience at work where employees want to show up to work, rather than have to. Ever wondered how companies retained their employees during the financial crisis even with the salary cuts? The answer: people want to be there.

PROCAPITA is a regional consulting firm which has been established with the objective to provide exceptional professional services to organizations in the private and public sectors in a wide spectrum of industries & NGOs.

PROCAPITA’s key business areas include - Human Resources Advisory Services, Implementation Services “Co-sourcing/ Out-sourcing”, Recruitment Advisory Services, and Human Capital Development. We collaborate with our clients as their “Partner of Choice”, providing internal support, addressing challenges and achieving practical solutions. We develop our clients’ capabilities and leadership skills at every opportunity.

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