Did you know that the average cost of replacing an employee is six to nine months' salary? That's a lot of money for any business to lose. Not only that, but employee turnovers damage companies for several reasons. It can be difficult to find good employees, and it takes time and resources to train them. They may also have knowledge that is specific to your company and will be hard to replace. An applicant tracking system like Hirize can help you to determine how long a candidate is likely to stay in the company and what their potential is. This will help you to find the right employees and keep them for longer. In this blog post, we will discuss the importance of retaining employees and ways to combat employee turnover.
The retention rate is the percentage of employees who stay with a company over a period of time. According to the Bureau of Labor Statistics, in 2021, the average retention rate for all industries was 85.0%. This means that, on average, 15.0% of employees leave their jobs each year. The retention rate varies by industry, with some industries having a higher turnover rate than others. For example, the hospitality and retail industries have high turnover rates because they typically have low-paying jobs and offer few benefits.
When an employee leaves a company, it costs the company money in several ways.
First, the company has to spend money on advertising and recruiting to find a replacement.
Second, it takes time and money to train the new employee. The new employee may also not be as productive as the one they replaced and may make mistakes that cost the company money.
Other employees may become disgruntled and leave as well if they feel that their work environment is not good. This can create a domino effect, and the company can lose many employees in a short period of time.
Finally, the company may lose knowledge and experience when an employee leaves. This is especially true if the employee was with the company for a long time or had knowledge that is specific to your company.
1) Offering competitive salaries and benefits
This is the most obvious way to combat turnover. If your company offers low salaries or few benefits, employees will be more likely to leave. To find out what salaries and benefits are competitive, you can research other companies in your industry. You can also use salary data from job postings or salary websites like Glassdoor.com.
2) Offering bonuses or raises
You can also use bonus or raise programs as a way to retain your best employees. For example, you could offer a bonus to employees who have been with the company for five years or more.
This will show your employees that you are willing to invest in them, and it will also help to keep your best employees from leaving.
3) Creating a positive work environment
Another way to combat turnover is to create a positive work environment. This includes things like having a good work-life balance, providing training and development opportunities, and having a supportive management team.
If your employees feel like they are valued and supported, they will be less likely to leave.
You can also create a positive work environment by offering perks and benefits that improve the quality of life for your employees. For example, you could offer flexible working hours, telecommuting options, or on-site child care.
The more you can do to make your employees' lives easier, the less likely they are to leave.
4) Communicating with your employees
It is important to communicate with your employees on a regular basis. This includes things like letting them know about changes in the company, asking for their input on decisions, and keeping them updated on their performance.
You should also communicate with your employees when there are problems. If you ignore problems, they will only get worse. But if you address them head-on, you can often find a solution that works for everyone.
Finally, you should always be open to feedback from your employees. This feedback can help you to identify problems that you may not be aware of and to find ways to improve the company.
If you make an effort to keep your employees in the loop, they will feel valued and appreciated. This will make them less likely to leave.
5) Providing opportunities for advancement
Another way to combat turnover is to provide opportunities for advancement. If your employees feel like they are stuck in a dead-end job, they will be more likely to leave. But if you offer them the chance to move up in the company, they will be more likely to stay.
You can provide opportunities for advancement by creating new positions, offering training and development opportunities, and promoting from within.
Promoting from within is a great way to show your employees that you are willing to invest in their future. And it can also help to build morale and loyalty among your employees.
When your employees feel like they have a future with the company, they will be less likely to leave.
6) Recognizing and rewarding employees
Another way to keep your employees from leaving is to recognize and reward them for their work. This can include things like giving them bonuses, raises, or promotions. But it can also include things like giving them paid time off, gift cards, or other perks. You can also show your appreciation by simply saying "thank you" and letting your employees know that you appreciate their work.
When you show your employees that you appreciate them, they will be less likely to leave.
The above are six ways to combat employee turnover. If you implement these strategies, you can keep your best employees from leaving and improve your retention rate. But it's important to remember that every company is different. So, you may need to tailor these strategies to fit your specific needs.
Hirize offers an applicant tracking system that uses predictive analytics and data science to calculate how long the candidates are likely to work in your company on average. It factors a variety of indicators, including their work experiences and resumes, to calculate how long they will remain employees of your business.
This is important because it can help you to make better hiring decisions. If you know that a candidate is likely to leave after a year, you may not want to hire them. But if you know that a candidate is likely to stay for several years, you may be more willing to invest in them.
Plus, Hirize's algorithms make it easier to find well-suited candidates for open positions. People who are suitable will be less likely to leave their current jobs, ensuring your organization maintains its top talent while saving you time and money on hiring efforts.
To learn more about how Hirize can help you to improve your retention rate, visit our website or contact us today. We would be happy to answer any of your questions. You can also sign up for a demo to see how Hirize can work for you. https://hirize.hr/
That's all for now! Be sure to check back soon for more tips for your business. Thanks for reading!