Are too many good employees leaving your company in favor of "greener pastures" elsewhere?
Are more getting ready to walk out the door this year?
These are undeniably tough questions to answer, but data from PrideStaff's 2015 Employee Retention Survey can help you determine how your turnover rates compare – and how you can minimize the negative impact turnover has on your organization.
Better opportunities and pay are chief drivers of voluntary turnover.
Results from our survey show that, while turnover is most often initiated by the employer due to under-performance, voluntary turnover occurs for a variety of reasons:
Q: What is the most common cause of employee turnover in your organization?
- 42.3% – Let go due to under-performance
- 20.7% – Better career opportunity / advancement
- 18.9% – Higher paying jobs elsewhere
- 10.5% – Decreased demand or budget constraints
- 1.3% – Better benefits package elsewhere
- 2.9% – Unhappy with corporate culture
- 3.5% – Unhappy with management
Turnover issues are unlikely to go away anytime soon.
Data from our survey indicates that:
- Nearly half of respondents (47.8%) expect turnover rates to remain roughly the same through the rest of 2015.
- 14% of employers expect rates to increase this year.
Most employers simply react to turnover.
Despite the persistence of this workforce issue, most employers take a "reactionary" approach to turnover. Few companies have a detailed plan for minimizing turnover and its impact:
Q: How would you describe your company strategy for dealing with turnover?
- 61.4% – We deal with turnover on a case by case basis and only recruit when we have an opening.
- 14.8% – We are in the process of defining a more strategic approach to dealing with turnover.
- 13.9% – We have a proactive recruiting strategy in place and have built a bench of available talent.
- 5.9% – We do not have a plan in place.
- 4.0% – Unsure.
Turnover is an expensive proposition.
Every time you lose a good employee, your business loses time, money and knowledge.
Your employees pay a high price, too. In fact, most companies rely on existing employees to "pick up the slack" and maintain productivity when turnover occurs. While this may be a viable short-term option, increasing direct employees' workload for an extended period can decrease focus, morale and productivity, while increasing stress, burnout and future turnover.
How can you minimize the negative effects of turnover?
- Make recruiting more proactive. Address the problems turnover creates by nipping them in the bud. Instead of waiting for gaping holes in your workforce to appear (and then being under intense time pressure to fill those openings), begin sourcing talent well in advance of your actual needs. By developing a pool of qualified candidates, you will be better prepared once a hiring need arises.
- Partner with a leading national employment agency. As a true consultative partner, PrideStaff will take the time to learn about your true business goals and analyze your existing workforce plan. Together, we can develop a strategic approach to managing workforce issues like critical staffing gaps, chronic work and turnover. Our solutions support your team with a bench of ready talent – increasing productivity, retention and profitability.