Employees are the most valuable asset of an organization. Every business tries its level best to keep employees motivated and engaged with their work. HR professionals remain busy in devising strategies and activities that reduce staff attrition and boost employee performance. Employee attrition refers to the process of reduction of staff due to voluntary or involuntary reasons. It can either be through retirement, employee migration, resignation, or termination of the contract.
15% of employees worldwide are engaged in their jobs (Gallup)
A huge amount of time and money is spent on training an employee for a job role and making him suitable for carrying out daily tasks of the organization. All this goes for a toss when he/she decides to leave the job. Every organization tries its best to retain high performing employees which is why staff attrition hurts so much. The cost of employee attrition is high because a lot of time, effort, and energy is spent on getting the employee onboard, integration with company values and culture, alignment of vision, and on-job training. Employee attrition can adversely affect the morale of other employees, thereby decreasing their productivity.
What are the primary causes of employee attrition?
- Mismatch of the job with the employee
- Lack of training or lack of tools provided in proper dissemination of the job
- Lack of communication, misalignment of company policies
- Better opportunity at another organization
- Lack of recognition of work
Employee turnover is never good news for your business. Take a note of the following tips to decrease employee attrition in your organization:
- Offer industry-standard salaries
72% of workers are satisfied, but 60% are still looking around for a new job with higher wages (Addison Group)
Fair and timely wages are one of the most essential elements that motivate an employee to stay. Offering wages below the market rate will likely lead the employee to look for other options. When it comes to valuable employees who have spent considerable time in their job role, this is a loss for the company. Compare the average salary offered by your department to those offered by other organizations for the same job role. If there are substantial differences, the company must audit to bring its wages at par with the industry standards.
- Train the Managers well
A majority of employees stay because of their supervisors and not because of the company. Having an empathetic boss who is willing to impart knowledge and guides the team well is irreplaceable. A good employee-supervisor relationship is critical for productivity as well as organizational success. Train your managers well not only about technical aspects of the job but also how to handle employees successfully.
- Define responsibilities clearly
During recruitment, it is wise to make clear the job role and responsibilities that come with it. Transparency in communicating the expectations will make it easier for the candidate to make the final decision and the organization will not waste time in training the resource unnecessarily. It earns their dedication and commitment to the job.
- Offer opportunities for advancement
Offering career training and development would keep 86% of millennials from leaving their current position (Bridge)
While money is a factor, training, and learning opportunities offered by the job are another big motivating factor behind employee engagement. Productivity levels automatically dive down when employees feel stagnant and realize that the job offers nothing new to learn or cultivate and grow their skills. Organizations should organize training programs that help employees in growing their skillset and making them learn new technologies in the field. Conduct regular performance reviews and assist them in improving their weak points. An organization should aid in the holistic development of the employees and help in their overall growth. This gives a sense of fulfillment and people are more content with their jobs.
- Cultivate a positive environment
A negative work environment not only hampers employee performance and productivity but also spells doom for the organization. It is imperative to have a positive co-working space that encourages employee growth and retention. Organize fun activities that make employees feel connected to the job, foster an environment where hard work is recognized and rewarded. Involve the employees in the decision-making process and encourage participation and discussion of ideas.
There are various other factors that affect employee attrition. To avoid such a scenario, organizations should look at automation and reduce the dependency on paperwork. Provide your workers with tools that assist in the growth and do not hamper productivity. Make the workplace more enjoyable so that employees feel at ease while working. Be receptive to feedback because employees are the most valuable asset for an organization. Encourage learning and motivate your employees to add to their skill set regularly. With changing technology, remaining stagnant will put a pause on your organization’s growth which is why it is important to keep learning. It is important to show to your employees that they are valued hence communicate and encourage openly. Practice empathy and be more flexible and open to the problem of others. Such qualities are very important as they can help you weather any storm in the business world.
By adopting these strategies and proper implementation of these tips will help significantly in lowering staff attrition rates. Happy and satisfied employees are the biggest assets of an organization and companies can achieve growth and success only when it has a dedicated and motivated workforce.
About Paylite HRMS
Paylite® Human Resource Management Software is an end-to-end HRMS system to meet the ever-growing needs of modern-day workplaces. It has helped companies worldwide in increasing productivity by replacing age-old legacy systems. To adopt Paylite HR management software for your business, Book a Demo here: https://www.paylitehr.com/request-demo.html