Turnover happens. It also costs a business a lot of money. There is no way to eliminate it, but minimizing its impact is critical.
Cost insights
Turnover is leeching your business of money. The average cost to replace an employee is 20% of their salary. The costs are easy to add up but often overlooked. You need to cover the work left from that staff member, recruit candidates, interview candidates and train the new hire. If the exits are not managed properly there can be significant damage to workforce morale. Perhaps the person leaving was well liked and influential with the other staff. Often the extra work leaves the staff stretched while a new hire is sourced and brought up to speed.
Typically organizations should see an annual turnover rate of 5-10%. So if an organization employed 80 people with an average salary of 70K, and their turnover rate was 20%, that would equal $224,000 per year. Lowering that turnover rate to the high end of the industry average 10%, would save the organization $112,000 a year.
Stop the bleeding
There is an expression that people do not quit companies, they quit managers. So the first line of defense in retaining your workforce is to ensure your managers are leading the team effectively. To the staff, management IS the company. Without a healthy relationship between the workforce and management, the company will suffer lost productivity, low morale, and ultimately high turnover.
Understand the Staff
Not every person in the organization can be motivated by the same things. Therefore, it is critical to understand each staff member. Really understand them, what makes them tick, what gets them excited, both professionally as well as personally. Tailoring management style as well as messaging to the individual can have a dramatic effect on how that message is received.
Set a clear vision
Define the vision and communicate the vision at every opportunity. If your staff is unsure what the goals are they are unlikely to understand how their contribution matters. A clear vision is a fundamental building block to employee engagement.
Measure, Monitor, and Review
Don't wait until next year to determine if the approach you are taking is succeeding. Soliciting feedback from management and staff on a regular basis is important to gauge your progress. Setting target goals give you something to measure against and adjust course where necessary. When you do loose staff conduct an exit interview, perhaps there are some valuable insights from the people that have chosen to leave.