The Society for Human Resources Management (SHRM) estimates that the annual turnover rate of a business is about 15 percent per year. Regardless of where your company stands in comparison, turnover needs to be managed effectively in order to meet strategic goals and maintain a healthy bottom line.
Always Be Recruiting
Companies who are constantly in recruitment mode score in the top 20 percent in talent management and produce 22 percent greater total returns. The key is to develop a robust prequalified candidate pool before there’s an immediate need to fill a position.
- Constantly promote your employment brand. Develop relationships with potential candidates before you need them.
- Create a rich online presence. Maintain an up-to-date careers page on your company website. Make it multimedia by including videos and other images. Highlight all the roles you offer, not just those currently open. Integrate your social media accounts – LinkedIn, Facebook, Twitter and others – into online job sites.
- Go back to school. Optimize college recruiting. Use high-performing members of your current workforce as ambassadors and send them to their alma maters to promote your company.
Practice Strategic Hiring
One of the best ways to minimize turnover is to hire the right individuals in the first place. This starts with a carefully executed hiring, interviewing and recruitment process.
- Don’t cut corners. Develop a comprehensive hiring checklist and stick to it. This includes initial resume scanning, background and reference checks, skills and personality testing, and uniform questions to be posed of all candidates.
- Hire for cultural as well as skill set fit. In addition to a candidate’s functional abilities, deep dive into soft skills such as communications, leadership and teamwork.
- Ask open-ended questions. These require candidates to provide examples and specific details. Don’t accept general responses. Instead, dig for more so you get a clear feel for how a candidate will fit in – or not.
Offer Competitive Compensation
Employees want to be paid well for the job they do, both for their self-esteem and as a practical means to living.
- Stay current with market rates. Review your compensation packages at least annually. SHRM, your industry peers and local chambers of commerce can provide additional insight.
- Offer attractive benefits. Find out what an employee needs and tailor a package to meet their individual demands.
Get creative when it comes to perks, rewards and recognition. Ask what you can do to help employees balance their work and personal lives.
- Offer perks that enhance the workplace environment. These could include job sharing and telecommuting, on-site daycare and fitness centers, massages, and catered meals or snack carts.
- Rewards go a long way. A well-organized recognition program is among the most cost-effective ways to maintain a satisfied workforce.
Communicate and Empower
Employees who feel a sense of ownership are less likely to leave.
- Continually seek input. Conduct regular employee surveys, focus groups and exit interviews – and use the results to foster continuous improvement.
- Offer cross training. This gives employees the option of moving to another job or area of the company rather than leaving.
- Be accessible. Encourage workers to come to their managers with questions and ideas throughout the year, not just at performance review time.
Contact the recruitment team at Employment Professionals Canada for additional ideas and resources on managing turnover and building your workforce for the future.