Employee turnover or turn over represents the departures and arrivals of employees over a specific period within a company. It is also called job rotation or turnover rate. This is a number or a percentage that can have consequences on the costs of the company but also on your employer brand. Indeed, there is a real risk not to pay attention to it: the replacements of collaborators are economically very expensive, and talents could avoid or flee the company by fearing following the many departures.
This is why it is important to pay attention to this phenomenon… but then, how to reduce employee turnover?
In this article you will find 5 tips to limit your employee turn-over.
1 - Conduct a Corporate Audit
The first advice is to analyze your organization: what are your strengths and weaknesses? Is your human resources management still up to date? How is the organization perceived by your employees and candidates? So many questions you need to know the answers to.
However, without an audit of the company, it is impossible to detect new problems and solve them. This is a mandatory process to reduce your employee turnover.
The audit is one of the keys to understanding what is going on
With these results, you will certainly determine the causes of your turnover rate. By the way, the formula to calculate the turnover rate is quite simple, let's take the year 2022:
[(Number of departures in 2022 + Number of arrivals in 2022) /2] / Company’s workforce as of January 1, 2022]
So, you get a figure that corresponds to the number of employees of the company that has been renewed in 2022 (in our case). However, this is only an indicator, as many factors such as the sector of activity play on its interpretation. Indeed, a high turnover rate is not necessarily a bad sign, so look at it from different angles before concluding that it is a tragedy or a success.
If you think the situation is bad, then fortunately there are other tips to keep employees from jumping ship.
2 - Listen to your employees (past and present)
Earlier we mentioned the perception that employees have of the company: this is something very important because they are the reflection of the organization. That's why employees must be listened to every year in order to adapt to their needs. Their morale depends on it.
But how can this be done? Several things can be put in place: for example, anonymous questionnaires or personal interviews to get direct feedback. You can also use engagement measurement tools to see what comes out indirectly. Also consider asking employees about their reasons for leaving (although they have the right not to answer about their motivation).
It is important to give a voice to each individual
Each case will bring you issues, some of which you may have known about while others may be unknown to you.
However, listening alone is not enough. An employee will be happy to be heard but if nothing is done afterwards, he will be even more disappointed. This is why you should not hesitate to be proactive by applying concrete solutions.
3 - Strengthen the work environment to improve your QWL
You might think that all you need to do is increase compensation. But you should know that this is not necessarily what your staff is looking for anymore. In fact, more and more professionals are looking for a good quality of life at work, so you should know that offering your employees benefits that carry weight is a key to attractive recruitment.
According to the terms of the National Interprofessional Agreement law, this term designates and groups under one heading the actions that allow to reconcile both the improvement of working conditions for employees and the overall performance of companies.
The work environment is one of the levers since according to the IDET (formerly ARSEG), the work environment is the set of material conditions, services and means made available to employees to perform their work.
So maybe it's time to implement flex office and/or telecommuting in your organization in order to bring a balance between private and professional life to your employees? Or simply offer training to your staff? You should also not neglect the prospect of evolution, which is very important for the new generations of employees, and which can lead to a higher retention rate. Moreover, setting SMART objectives can help your employees to situate themselves in relation to their tasks in the company.
However, all these approaches are individual, so it is advisable to diversify them so as not to neglect the collective spirit. Indeed, according to a Harris Interactive/APEC study, 78% of employees prefer to work in teams. Organize regular team building events or simply team meals (without even going to the restaurant!), these moments can make the difference, they will bring cohesion and creativity to your company.
4 - Ensure internal communication
Now, you have implemented change in your company. However, you should not withhold information. Remember to inform your employees, this is even more important if you are in a large company.
Taking action to reduce your turnover rate also requires a communication campaign, otherwise this project will not be successful. If you don't have the time but you have the financial means, ask a service provider to carry out an internal campaign.
On the other hand, digital is your friend, nothing prevents you from sending an email to each employee or informing the managers so that they share the information in their team.
All this is important for these changes, but not only. Communication should take place regularly through group meetings, newsletters or an intranet portal so that everyone knows what's going on in their workplace. You can also give them access to a voice space so they can communicate as well. Transparency is a strong point of this plan.
This will help build loyalty and make them see your company as a second family.
The ambassador accentuates the company's internal communication
As soon as that happens, you will certainly have volunteers to be ambassadors. That is, people ready to share your corporate culture with your potential future talents. This will necessarily influence their integration.
5 - Choose the right candidates and ensure a good integration period
If you've followed all of our previous tips, there's just one more to address. If everything is going smoothly in a company, it has to last. To do this, what could be more important than choosing the right people to recruit and doing it in the best way possible? Of course, a face-to-face interview is recommended, but that's not the most important thing here.
It just so happens that needs have evolved. It is obvious that diplomas are important, but soft skills are just as important. The proof is here: LinkedIn's "Global Talents Trends" report released in 2019. It reveals that 89% of recruitment mistakes are related to soft skills.
Then you understand that the priorities in terms of skills have changed. Now you have to define the soft skills to prioritize and luckily we have made a top 10 of the most important ones for 2023 to help you.
However, a talent could be only in declarative form, that's why it is important to set up an assessment solution in order to evaluate its competencies such as adaptability and stress management or many others. This is exactly what Yuzu offers you with the help of gamification. Let yourself be carried away by a new wind. It is a real evolution for the recruitment process and the candidate experience.
Finally, it is important to be honest with candidates about the overall functioning of your company. The classic mistake is to oversell the company and the contrast with the reality, once the employee has been recruited, can greatly disappoint the new recruit. It is thanks to a quality recruitment process that the candidate will feel confident during their integration. Remember to value the integration, it will allow your recruit to start in the best conditions and will increase your chances of retaining them.
In this article, we wanted to give you the keys to reduce your employee turnover. The latter must be approached in a strategic way and be a subject of renewal of practices (to avoid departures). It is a complete development from the management of life in the company to your integration process. All of this plays a role in the morale of your employees in the company during the year (and therefore their retention).
As you can see, there are many possibilities and tools to establish an effective strategy. It is important to keep in mind that your employees are the essential asset of your company.
By adapting these 5 tips to your objectives, you will have the keys to ensure the sustainability of your organization.