If you're witnessing a high employee turnover in your business, you're not alone. "Quits," or voluntary separations, are on the rise by about 8 percent, according to a Calculated Risk survey.
That metric confirms that employees are finding better opportunities to venture out and take their next career steps. As a business owner, you can't assume that your top performers will stick around for the long haul, you need to take the right steps to keep your team on board and your business intact.
Here are some steps to follow:
Conduct Industry Research
The ways that top employees find career opportunities have changed substantially in the last few years. For many, the days of traditional "job seeking" are in the past. Research by LinkedIn shows that the majority of today's workers are passive candidates who are not actively seeking new roles. Interestingly, only 15 percent were totally content with their jobs. The remaining 85 percent were either actively seeking new roles, casually searching or open to hearing from recruiters.
Recruiting teams do the heavy hunting today, reaching out to happily employed people with new opportunities. Your company could have great perks, culture and wages, but even that may not be enough to hold on to top performers approached with new opportunities.
It's important to know who your competitors are and what makes working for them appealing to prospective employees. Then, you can better tailor your own wages and benefits to market demands — a process that may take several months, depending on the scope and size of your business.
Implement an Exit Interview
If you're dealing with a high employee turnover, you may decide to raise salaries and introduce new perks. The problem with this approach? These steps may not counteract the underlying challenges. You might be fighting the wrong symptoms.
Figure out why employees are leaving by streamlining your exit interview process. Ensure that all departing employees have a chance to express feedback openly and honestly. If you're part of a small company, ask every departing employee to participate in an in-depth exit interview. To encourage an additional layer of transparency, midsize companies can also consider conducting an anonymous survey of departing employees. For a complete picture, you need to collect data from multiple perspectives.
Establish Long-Term Incentives
Implement incentives at your company that encourage individuals to stay. These may include long-term pay raises, bonuses or company-sponsored sabbaticals. While small companies may be able to roll out these changes immediately, midsized companies may need a slow and steady implementation plan.
Create a structure that incorporates input from the previous tips so employees know their perspectives are heard and you can stay on the right track for your industry. Work with your communications team or a consultant to ensure that your message resonates.
By knowing what your employees need, you can more effectively adapt and evolve by creating long-term incentives for your team.
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