Employee turnover is a big deal for small and mid-sized businesses. A revolving door of employees costs your business more than you may think.
If you don’t think you have a turnover problem or think that turnover is just part of business as usual, think again. Take a look at these frustrating facts about turnover (and what you can do about it):
1. Turnover can start in the hiring process.
One of the most effective ways to reduce turnover is to hire the right person the first time. Yes, you need to fill that job fast, but if the person isn’t a good fit you’ll find yourself looking to hire again soon.
HipHire can help you slow your turnover rate by making the right match, right away. HipHire’s streamlined process makes it easy for you to get your opening out there, connect with good fits for your position, and hire the right person from the get go.
2. Replacing employees costs money
Replacing an employee can cost thousands of dollars. Turnover costs more than the expense of posting an open position. Businesses also pay for:
- time and materials for training
- employee equipment the company provides
- overtime for other employees who cover until the position is filled
Add in lower productivity due to short staffing or a new employee’s learning curve. That all adds up.
3. Turnover wastes time
When an employee leaves, somebody in your organization has to write a job description and post the job, vet resumes or applications, and set up and conduct interviews. Once you make the hire, you need to enter the new employee into your system and train them. All of this eats up time. And time is money, so add that to fact #1 and it makes sense to tap into the power of HipHire to streamline your hiring process.
4. Turnover affects morale
Turnover does a one-two punch on morale. Employees who stay often shoulder more work until a position is filled and the new person is trained and adjusted to the position. At the same time, people leaving may make those who stay wonder what else is out there or add to any feelings of dissatisfaction they are having with their own job.
5. Employees exits affect company culture
Company culture is hard to pin down. It’s a mix of shared values and practices, part history, part connection among your team. Company culture develops over time and is passed on by people in the company. Too many people leaving disrupt practices and may break down the sharing of information and history. Since company culture affects the feel of working in a place, crumbling culture can ultimately add to turnover rates.
6. Not knowing why employees are leaving is part of the problem
Understanding why people are leaving is a key step toward lowering your turnover rate. Make sure you use exit interviews to find out why people are leaving. We cover four top reasons for turnover here. If any of these sound familiar, you know where to start making changes.
7. There might be simple things you could do to slow turnover
While you can learn from an employee leaving, learning what employees want while they are still working for you is even better. Keeping tabs on morale and on how specific employees are feeling is important to keeping job satisfaction high. Incorporate a system for employee feedback, and try these tips for keeping employees as happy, productive members of your staff.
Employee turnover is frustrating and costly. There’s no getting around that, but by hiring the right people and taking steps to keep them happy, you can minimize the cost to your business. Let HipHire help you lower those costs by connecting you with your next candidate.
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