Work provides opportunities for employees to thrive at any given time. However, it is inevitable for work to have stressful moments. As a team leader, you oversee productivity. Consequently, rank-and-file employees follow their manager’s orders.
Unfortunately, stress is a reason why many employees leave the workplace. When there is too much stress, they may not perform their best. The Society for Human Resource Management states that reasonable pay is insufficient to keep employees from resigning. What can we do to address high employee turnover?
How Does Employee Turnover Impact A Company?
What is Employee Turnover?
According to Oracle Netsuite, employee turnover is the employee separation from a company that includes both voluntary and involuntary. Voluntary turnover refers to the people who leave on their terms. These include finding a new job, personal reasons, etc.
On the other hand, involuntary turnover occurs when an employee is terminated from a position. Involuntary turnover includes termination of employment, seasonal layoffs, reduction in force, or termination due to low performance.
Most employees prefer to leave on their terms rather than get laid off. Employees leave because they found a company that offers better pay, more benefits, and more time off.
Is Employee Turnover Good Or Bad?
Employee turnover is bad for the company because it indicates that the company has reduced productivity, lost training costs, and decreased morale. According to HRM Asia, 57% of Singapore companies say employee turnover harms organisational performance.
If the turnover rate increases, it also indicates that your company is losing good employees.
The factors affecting employee turnover include workplace culture, benefits, compensation, training, career paths, etc. Therefore, you should reduce turnover as soon as possible.
Possible Signs Of Employee Turnover
Employees don’t just decide to leave overnight. This is a difficult decision that they’ve probably thought about for weeks or even months. As a manager, it is your job to look for early signs that an employee is considering leaving.
Here are some common signs you can look for.
- Low productivity
- Changing teams
- Poor compensation
- Little to no feedback/recognition
Just note that these signs vary depending on your company, and addressing them as soon as possible is crucial.
How Do I Deal With Employee Turnover?
Communicate With Employees
Communication is the foundation of a company’s operations. If you want your employees to stay with you, you must create a positive environment for employees to thrive.
One way to do that is by communicating with your employees. Communication actively deals with employee turnover because you are engaging with them. It makes them feel seen. You can discuss flexibility, remote work, and growth opportunities. As a result, employee turnover gets reduced in the long run.
Here are some ways you can reach out to your employees.
- Understand how your employees communicate – Learning your employees’ communication preferences is the first step. Ask them which communication channel is the most comfortable to use for them. Older employees might take a while to adjust to new technology. Meanwhile, younger employees may find it easier to adapt to newer technology.
- Establish clear guidelines – Clear employee expectations can set the tone for your relationship and boundaries. In addition, good team leaders also acknowledge that employees are aware that they are accountable for their behaviour and quality of work. As a result, it makes it easier for the team to gauge their progress in meeting departmental goals.
- Send team member feedback surveys – Surveys are a great way to receive feedback. You can send this survey any time in the calendar year to find any changes. For example, you can send monthly surveys to gather feedback from your teammates and co-workers about how their work is going and if they have any concerns.
Promote a space for employees to voice their thoughts about the company, work concerns, compensation, and goals.
- Provide growth opportunities – Another meaningful way is to give them more growth opportunities. Offer leadership training programs to help workers become more productive and manage their time wisely. It can also be an investment on your part, as training programs are proven to promote long-term change and improve team performance.
Become Better Leaders With The Mental Rockstar Program!
Managing high turnover rates is a challenging feat. You have to get to the root of the problem and see how to bridge the gap between employees and the company.
The key way to address high turnover rates is to establish better communication with your employees. Provide communication channels for feedback so employees can voice their concerns to ensure you and your team are on the same page.
The Mental Rockstar Program is for organisations aiming to improve employee relations. YuJin, an award-winning mental toughness expert, former lawyer, and investment banker, uses his expert corporate knowledge to design an award-winning program. Contact Mental Rockstar today!