Eventually, someone on your team will leave. No one wants to deal with employee turnover, especially in times of flux and uncertainty that often accompany situations such as the pandemic we are all living through at present. When it comes to human resources quandaries, what effect does employee turnover have? Let’s find out.
It should be noted that happier employees work harder and improve the bottom line. Onboarding new teammates will take time and energy that can cause productivity to lag behind for the time being. In terms of human resources, this can have mixed results – your overworked team may be glad to get someone new, but the new employee might not mesh well with the group dynamic.
The Work Institute conducted a study that showed that 41.4 million employees left their jobs in 2018 alone. In other words, 27 out of 100 employees quit; this represented an 83% increase from 2017 and an 88% increase from 2010. What does this mean for HR departments? The Work Institute also estimates that the trend would continue and reach a 35% turnover rate by 2023.
Human resources managers have reason to be concerned. After losing an employee, the cost of hiring someone new includes advertising, interviewing, screening, and hiring processes. As mentioned above, there are costs associated with onboarding, lost productivity, and lost engagement. There are also mistakes and learning curves tied to customer or client service, training costs, and an impact on workplace culture – the remaining employees will wonder why their coworker or colleague left in the first place.
Let’s talk about best practices when it comes to retaining employees. Set a benchmark for employee retention so you can see where you are and how to improve. Then, use best practices that have been proven to work instead of trying to guess what works and what doesn’t. Creating a high feedback environment is also worth it, although it may be difficult and awkward to launch such a program at first. Establish a health benefits program for everyone, even part-time workers – this can be in the form of a health reimbursement arrangement or HRA. Give everyone a chance to personalize the package of benefits they choose, and finally, make sure to hold exit interviews before someone leaves the organization.
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