The year is coming to a close quickly. For many companies, the new year can bring major shifts in team dynamics as employees leave an organization for other opportunities.
While many companies held onto the notion that employees were just thankful to have a job during the economic downturn, that notion no longer applies. In 2014, market growth showed a huge surge in job opportunities. With competition on the rise, how can your HR staff avoid having too many employees leave as the new year begins? Here are a few tips:
Start at the Beginning
In order for HR staff to understand and accurately predict turnover, there needs to be a benchmark; a starting point for companies to compare data going forward. Companies realize that some turnover is healthy (the national average is 15%), and while that is true, you do need to understand when to cut turnover and by how much. Figure out what number is comfortable for your business—for example do you want to shoot for 11% to be below the national average or are you ok with 15% yearly turnover?
Vet Your Candidates Thoroughly
To help reduce turnover rates or stabilize at a number you’re comfortable with, implement a “highly interactive” recruiting system. This includes multiple on-site interviews, tours of your operations, and even a homework assignment (if applicable) to see how candidates handle themselves. Changing how you recruit allows your HR staff to hire for quality instead of just filling yearly gaps.
Take a Closer Look
If you want to avoid a large turnover ratio at year end, then you need to take a closer look. Find out who is at high risk of leaving the company. Are these employees the top performers? Being able to assess who is leaving, and why, is crucial. It helps give you an indication into patterns. For example, is turnover hitting an all time high after bonuses are paid? Has there been an increase in turnover after an employee is promoted to first-time manager?
Conducting exit interviews not only helps you answer crucial questions like these, but gives you a plan for moving forward. HR staff can build off of exit interviews and surveys to determine if alternative programs need to be utilized. Improved on-boarding processes on the front end or a stronger focus on team building could greatly impact retention. Directors and CEO’s are not only interested in turnover percentages; they want to know how many top level performers they are losing and how it affects the business’s bottom line.
As a top-ranked recruiting firm, PrideStaff Financial can help your HR team understand and avoid high turnover rates in your company. Contact us today and find out how we can help you going into the New Year.