For businesses to thrive in today’s economy, finding and retaining the best employees is crucial. As a small business owner or entrepreneur, high turnover can negatively impact the profitability and productivity of your company. Turnover can stem from many reasons, including inadequate hiring practices, personality clashes, weak corporate culture and mismanagement. If you want to retain valued staff members, read on to learn about the impacts of high turnover on a business and how you can rectify it.
Increased staff turnover can have a negative impact on those who stay behind. Workplace morale can dip significantly and trust in your company’s management may be questioned. This can create insecurity for remaining employees, who might begin to question whether their job is at stake or how long they should plan to stay with the company.
Moreover, the working environment can also suffer from this type of insecurity. Employees may become less efficient and spend time questioning the state of the company. This can lead to stress and a decrease in motivation, which can lower overall productivity.
Difficulty Attracting Talent
When a large number of employees leave the company within a short timeframe, job seekers may be reluctant to work for your organization. Prospects might question the company’s financial stability or internal culture. This can hurt your ability to recruit top talent and fill open positions.
Losing a valued employee means you have to go through the recruitment, selection and hiring process all over again. This long and tedious process, along with onboarding and training, can cost a business thousands of dollars. It could take months before you find the right candidates, which can result in the understaffing of other departments. When you do hire a new employee, he or she won’t immediately deliver the same sales or production results as the former one.
Strategies to Reduce High Turnover
The following are effective steps small business owners and entrepreneurs can take to slow the attrition rate in their workplaces.
- Perfect your selection process — During the interview process, clearly outline all work and salary expectations in the job description before the employee starts working at your company. Creating clear expectations for the role can help an employee be productive from the get-go and ensure that the candidate is a good fit for the position and your company culture.
- Ensure a good work/life balance — Implementing more work/life balance incentives can help mitigate your attrition rate. Consider offering work-from-home solutions, flexible schedules, an open PTO policy or social outings to promote positivity and a good working environment between colleagues.
- Promote professional development — By offering opportunities for personal development, employees can learn new skills and grow with their positions. When employees know they are able to both succeed and grow within the company, they are more likely to stick around.
These strategies have the potential to counteract high turnover and restore stability to keep your business running smoothly. To learn more about the impacts of high turnover and various solutions to combat it, see the accompanying infographic.
Courtesy Of Advanced RPO