Reduce Employee Turnover

The biggest challenges faced by the companies in today’s world are attracting employees and retaining employees (Belete, 2018).

If an organization wants to be successful it has to value its employees. Successful organizations are used to recognize and value their employees to hold their position.

In many countries, due to increase in labor cost and labor turn over, the profit level had decreased during last 2, 3 decades (Hussein, 2015).

Employee Turnover

Employee turnover shows how frequently employees leave a business. It includes both the parties who left the company and who the company terminated.

Mostly companies terminate employees for less performance and behavioral issues. It will not affect the organizations much as they will replace them before the termination.

The employees leave the organizations for many reasons. These reasons could be classified under company culture, which can include (Branham, 2005),

·        Company’s values

·        Career opportunities

·        Compensation and benefits

·        Work-life balance

·        Effect of senior leadership

 

Increasing Employee turnover negatively impact the productivity, sustainability, competitiveness, and profitability of an organization (Alaarj, 2016).

Why Is Reducing Employee Turnover Important?

 

When employee turnover rate goes down, it increases the profit rate of the company. When skilled and experienced employees are within the organization, it helps the organization to achieve the plans and objectives easily. But when employees leave, though organization employs the suitable candidates to replace, it is costly and takes time to bring them to the right track.  So the companies have to find ways to reduce employee turnover (Carleton, 2011).

Employee Retention Strategies

• Ø Hire the right people
• Ø Provide competitive salaries and total compensation 
• Ø Closely monitor the employees with negative mindset
• Ø Reward and recognize employees
• Ø Offer flexibility
• Ø Prioritize work-life balance
• Ø Pay attention to employee engagement 
• Ø Define and develop corporate culture
• Ø Standardize performance reviews
• Ø Allow opportunities for development and continuing education
• Ø Develop career paths and opportunities to grow
• Ø Focus soft skills
• Ø Be transparent
• Ø Focus on onboarding
• Ø Analyze existing turnover to find issues
• Demonstrate and cultivate respect

Implementing appropriate strategies will increase job satisfaction, motivation and the productivity of individuals and organizations, which can reduce employment conflicts, absenteeism, and employee turnover.

Conclusion

Many researches advise to invest in human capital as it is the key to increase employee profits and productivity, also the employee well-being, because that will lead to high performance in the organization (Becker,1962). Employee turnover leads to lose good employees too. Therefore, retaining valuable skilled employees is significant to employers, as they are backbone to the performance and success of an organization.

References

Alaarj, S., Abidin-Mohamed, Z. and Bustamam, U., S., B., A. (2016)  Mediating Role of Trust on the Effects of Knowledge Management Capabilities on Organizational Performance, Procedia - Soc. Behav. Sci., vol. 235, no. October, pp. 729–738, doi: 10.1016/j.sbspro.2016.11.074.

Becker,G., S. (1962) Investment in Human Capital: A Theoretical Analysis, J. Polit. Econ., vol. 70, no. 5, Part 2, pp. 9–49, doi: 10.1086/258724.

Belete.A. (2018) Turnover Intention Influencing Factors of Employees: An Empirical Work Review, J. Entrep. Organ. Manag., vol. 07, no. 03, pp. 23–31, doi: 10.4172/2169-026X.1000253.

Branham, L. (2005) How to Recognize the Subtle Signs,7 Reason employees leave, vol. 27, no. 6, pp. 1–8 [13]

Carleton, K. (2011) How to motivate and retain knowledge workers in organizations: A review of the literature, Int. J. Manag., vol. 28, no. 2, p. 459, 2011.

Hussein, A., A. (2015) Investigating Factors that Influence Employees’ Turnover Intention: A Review of Existing Empirical Works, Int. J. Bus. Manag., vol. 10, no. 12, p. 152, doi: 10.5539/ijbm.v10n12p152.