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Understanding and Reducing Employee Turnover: Recruiters’ Guide

by Liz Carey

employee entering business through revolving doorEmployee turnover is one of the biggest recruitment challenges faced by businesses. Whether it’s the entry-level workers leaving within a few months of joining or managers quitting their high-paying jobs, losing employees is an issue that affects the working, productivity, and overall health of the organization. According to data from the Society for Human Resources Management, the average cost of replacing an employee is six to nine months of that employee’s salary. Additionally, the lack of corporate knowledge and experience that accompanies the loss of employees can have a significant impact on business operations. As a recruiter, it is essential to understand the root causes of employee turnover to help clients reduce the turnover rate.

Here are five tips for recruiters to help their clients overcome the employee turnover problem:

  1. Identify the root causes of employee turnover.
    The first step in solving the problem of employee turnover is identifying the underlying reasons why employees leave. Some of the common reasons include poor communication with management, lack of growth prospects, inadequate compensation, and unsatisfactory work-life balance. As a recruiter, you need to conduct a thorough analysis of your client company to figure out which factors are affecting employee retention.
  2. Improve employee engagement and communication.
    Engaged employees tend to remain for longer periods. Lack of recognition and rewards is a significant reason that employees leave a job. There are multiple ways to engage employees, such as establishing training programs, providing opportunities for professional development, creating a positive work environment, and developing a sense of community and collaboration among employees.
  3. Offer competitive compensation packages.
    Often, employees depart from an organization because of inadequate salaries and benefits. One way to reduce the employee turnover rate is by offering highly competitive compensation packages and benefits to attract and retain top talent. Make sure that the client company pays employees at the industry’s average rate or more, based on the employee’s experience, qualification, and performance. Additionally, employers can reward employees for their contributions to the business by offering bonuses, equity shares, and other rewards.
  4. Promote work-life balance.
    The employee’s work-life balance plays a significant role in the organization’s retention rate. Employees who experience high levels of stress or workload without sufficient support or balance tend to leave their jobs. Encourage clients to provide more flexible work schedules, including remote work or flexible hours, facilitating a better work-life balance for employees.
  5. Nurture positive and supportive company culture.
    Finally, creating a company culture that is friendly, supportive, and caring is crucial in reducing employee turnover. A positive and collaborative company environment helps employees feel valued, appreciated, and invested in company success, making them less likely to leave. It is essential to boost bonds within teams to create a strong collaborative culture. Building a sense of community via team-building exercises and regular company events creates a fun and exciting environment for employees to work within.

As a recruiter, it is vital to understand employee turnover rates, the underlying reasons for it, and how to reduce it to attract and retain top talent. Implementing the tips mentioned above should help in the client company’ efforts to get employees to stay for the long haul. As a result, clients will not only keep the staff they need but thrive and succeed in a highly competitive market. By making changes to the employees’ work culture, compensation model, and communication practices, clients can enjoy significant savings, productivity gains, and team performance.

Tags: employee turnover | Posted in: Recruiting Resources

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