How to reduce staff turnover

Published on 02/04/2024

How to reduce staff turnover

Published on 02/04/2024
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How to reduce staff turnover

Employee turnover carries a significant cost, not only in quantitative and economic terms, such as retirement and replacement expenses, but also in qualitative and intangible aspects like impacts on personal relationships or the company’s image.

To prevent turnover, it’s essential to:

    • Clearly define job profiles.
    • Improve the hiring process to find the most suitable candidates with the necessary skills.
  • Invest in human capital.
  • Promote the development of new skills.
  • Retain talent.

Performance management tools help identify productivity declines, goal deviations, and training needs promptly, enabling timely corrections and employee recovery. Taking action may involve adjusting tasks, providing additional tools or training, or revising objectives. Early detection of issues is crucial.

The importance of investing in talent is underscored by various studies demonstrating its strategic significance:

  • A study on “Youth Labor Flexibility and Employment” conducted by Bancaja from 2005 to 2011 highlights that young people with temporary contracts often display less initiative, reduced engagement, and limited innovation capacity. It also suggests increased labor flexibility among young people during the crisis.
  • Research from Harvard University reveals that 80% of employee turnover can be attributed to hiring mistakes, significantly impacting business volume.
  • Another study from Michigan State University indicates that traditional hiring techniques (e.g., resume reviews, interviews, reference checks) yield suitable candidates only 14% of the time.

How to reduce employee turnover?

Other factors that help prevent high employee turnover include the implementation of flexible work and work-life balance models. As discussed in some of our ebooks, these measures result in a high level of motivation, are highly valued, and in many cases, are preferred over salary increases.

These new ways of working empower and motivate employees by fostering greater integration and a sense of belonging within the company, thereby eliminating reasons for leaving. By increasing personal freedom, such as providing unrestricted internet access or allowing the use of social media during work hours instead of enforcing strict, traditional control policies, companies can retain talented employees and reduce turnover costs.

Workmeter facilitates the gradual, systematic, and controlled implementation of these measures by:

  • Enabling work from anywhere, providing consistent data regardless of time or location.
  • Offering a comprehensive view of productivity levels, which is crucial for managers, team leaders, and individuals alike.
  • Managing time and productivity to detect deviations promptly, facilitating the adoption of new work models.

Organizational Climate

Organizational climate influences individuals, their relationships, and, of course, their outcomes. But what should that ideal environment look like?

  • It’s crucial that the organization’s climate is characterized by the appreciation of talent, effort, learning, and continuous improvement.
  • Teamwork should be encouraged, as it is the engine for achieving common objectives and adds value to cooperation among colleagues in pursuit of goals.
  • We must be actively involved in motivating employees, recognizing that it is our responsibility, and understanding the benefits it will bring.
  • It’s essential to be able to listen to and address employees’ opinions and demands.

Employees who are valued and treated in this way are eager to learn and not only show a greater willingness to exert effort but also seek to improve in their jobs and exhibit a positive attitude, reflecting their motivation and integration into the organization. The quickest way to achieve positive change and progress towards this ideal is by implementing Workmeter, which:

  • Allows managers to better understand their own work and that of their employees, an essential requirement for creating a motivating climate. It’s fundamental to know how we work and how our teams work to begin implementing a process of continuous improvement.
  • Aids in setting and tracking objectives, providing access to the most important parameters and analyzing deviations at a glance without investing additional time.
  • Enables the supervision of our employees’ objectives without the need to constantly bother or interrupt them. Thus, we can reserve personal meetings only for when necessary, and, for example, conduct weekly objective follow-ups using Workmeter.

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