Why is reducing turnover so important?
Reducing turnover is a key element of your HR strategy, whether to maintain high productivity or reduce your recruitment and training costs. High turnover can indicate internal problems and lead to significant costs for the company.
Concrete Example: A recent discussion with an IT service company revealed that they reduced their recruitment costs by 25% by implementing an effective retention strategy.
How to measure and understand turnover?
How to calculate turnover?
To reduce turnover, it’s necessary to understand its causes. You can use People Analytics tools and methods to measure and analyze turnover within your organization.
Formula:
- Turnover (%) = (Number of departures / Total number of employees at the start of the period) x 100
Example:If a company with 100 employees sees 15 departures in one year, the turnover rate is 15%.
Analyzing the causes of turnover
- Exit interviews: Conduct interviews with departing employees to understand their reasons for leaving.
- Satisfaction surveys: Use anonymous questionnaires to gauge the current employees’ state of mind.
What are the internal strategies to reduce turnover?
Revalue salaries and align with the market
Reevaluate salaries
To keep your teams motivated and thus reduce turnover, ensure that salaries are competitive compared to the market. However, increasing salaries isn't the only way to retain employees. Not every company has the financial means to continually raise salaries, so consider additional employee benefits as the next step.
Here are some steps to achieve this:
- Market analysis: Conduct a comparative study of salaries for similar positions in your sector and region. Use reports from recruitment firms or salary surveys.
- Salary adjustment: If your salaries are below the market average, consider raising them. This shows your employees that you value their contribution and are willing to reward them fairly.
Introduce bonuses and benefits
Besides base salaries, introducing bonuses and benefits can significantly improve retention:
- Performance and profit-sharing bonuses: Offer bonuses based on company and employee performance. This can include annual bonuses, productivity bonuses, or rewards for meeting specific goals.
- In-kind benefits: Provide benefits such as gym memberships, transport cards, meal vouchers, or childcare services. These benefits add real value to the compensation package and can improve employees' quality of life.
Improve work-life balance
Mastering hybrid work
Managing hybrid work effectively is crucial since implementing remote work seems obvious today, but managing employees who are partially present and partially remote is a different story. However, to attract and retain talent, it is essential to promote a good balance between professional and personal life:
- Flexible hours: Allow employees to choose their working hours based on their personal obligations. This can include flexible working hours or compressed workweeks.
- Remote work: Remote work, once an exception, has become the norm. The goal is to offer the possibility to work remotely, partially or fully. Remote work can increase employee satisfaction by reducing commute time and costs.
Monitor workload
It is important to monitor and manage your teams' workload:
- Regular monitoring: Use project management tools to track workload and distribute tasks equitably.
- Adjust workloads: When employees are overloaded, redistribute tasks or consider hiring additional staff to lighten the workload.
Improve workplace well-being
Optimal working conditions
Creating a pleasant and ergonomic work environment is essential for employee well-being:
- Lighting: Ensure workspaces are well-lit. Natural light is ideal, but desk lamps can supplement if necessary.
- Noise: Reduce noise in offices by using soundproofing materials, partitions, and dedicated spaces for noisy discussions.
- Temperature: Maintain a comfortable temperature in the offices. Well-regulated heating and cooling systems are essential.
Ergonomics
Physical comfort at work can prevent injuries and increase productivity:
- Comfortable work furniture: Provide ergonomic chairs and adjustable desks to prevent pain and posture problems.
- Equipment to combat sedentary lifestyles: Integrate sit-stand desks, walking desks, or desk bikes to encourage regular movement.
Immediate steps to implement:
- Ensure proper lighting and minimal noise: Install curtains, blinds, and acoustic screens.
- Maintain comfortable office temperatures: Regularly service heating and cooling systems.
- Ensure office accessibility: Install ramps, elevators, and improve signage.
- Create relaxation spaces: Set up areas where employees can unwind, such as libraries, game rooms, juice bars, or coffee corners.
Be vigilant with managerial practices
Manager training
As HR professionals, you know that managers play a key role in employee retention. Therefore:
- Enhance communication and management skills: Organize regular training for managers to develop leadership, communication, and conflict management skills.
- Participatory management style: Encourage a management style where employees feel heard and valued. Two-way communication and constructive feedback are essential.
Concrete Example: Good management can reduce turnover by 50%. By investing in training programs for managers, you can create a work environment where employees feel supported and motivated.
Provide clear career advancement opportunities
Career development
Offering career advancement opportunities is important for keeping employees engaged:
- Continuous training: Offer regular training to help employees develop new skills and advance their careers.
- Leadership roles: Provide opportunities for employees to take on additional responsibilities or lead projects.
Recognition and rewards
Recognizing and rewarding employee efforts is essential for maintaining their motivation:
- Performance rewards: Implement formal and informal recognition systems to celebrate employees' successes and efforts.
- Recognition of efforts: Organize recognition events, such as reward lunches or awards for high-performing employees.
By implementing these internal strategies, you can create an attractive and sustainable work environment, reducing turnover and improving talent retention. To go further, explore our other resources and tools to optimize talent management within your company.
What are the external strategies to reduce turnover?
Develop a CSR policy
Ecological and social engagement
To attract and retain talent, it is important to show that your company is committed to ecological and social initiatives:
- Environmental projects: Implement initiatives such as recycling, reducing the carbon footprint, and using sustainable materials. Organize awareness campaigns and encourage employees to participate in ecological actions.
- Partnerships with associations: Collaborate with local or international associations to support social causes. This can include volunteer projects, fundraising events, or mentorship programs. These partnerships enhance your company's image and allow employees to engage in meaningful activities.
Concrete Example: Implementing a volunteer program that allows employees to dedicate 5 days a year to community projects can significantly improve satisfaction and reduce turnover.
Inclusive corporate culture
Promote a corporate culture that values diversity and inclusion to improve employee retention:
- Promoting diversity: Ensure your company welcomes and values employees from all backgrounds. Implement recruitment programs targeting a diverse pool of candidates and ensure your leadership team reflects this diversity.
- Inclusion: Create an environment where every employee feels respected and valued. Organize inclusion and cultural awareness training, and implement non-discrimination policies and zero-tolerance policies for harassment and prejudice.
FAQ
Why is reducing turnover important?
Reducing turnover improves talent retention, lowers recruitment and training costs, and maintains high productivity.
How to measure turnover?
Use the formula: (Number of departures / Total number of employees at the start of the period) x 100.
What are the internal strategies to reduce turnover?
Revalue salaries, improve work-life balance, enhance workplace well-being, monitor managerial practices, and provide career advancement opportunities.
What are the external strategies to reduce turnover?
Develop a comprehensive CSR policy, engage in ecological and social projects, and foster an inclusive corporate culture.
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