One out of every four among 1,002 Singapore workers surveyed by Indeed said they intended to quit their current company in the first half of 2022. Additionally, almost half were not sure if they would continue in their current position for the following six months. Why is the employee turnover rate so high? What solutions can be applied? This article will provide a comprehensive overview of employee turnover rate and effective retention strategies to improve the situation for any business. Read on!
Effects of Employee Turnover on Enterprises
Employee turnover is the departure of employees from your business. This involves both voluntary (such as resignation, retirement, and transfer) and involuntary turnovers (such as layoff and firing). Employee turnover, depending on the extent, may have a beneficial or detrimental influence on your company.
Low turnover rates are usually associated with better reputations for enterprises. High employee satisfaction is reflected in an acceptable turnover rate, which helps to draw top talent. In contrast, high turnover rates can be harmful to your company. It is because of the costs involved in recruiting and training activities, which adversely influence the firm’s financial wellness. Furthermore, the remaining employees must take on extra work, and the departure of one person may prompt others to consider seeking another job.
Main Reasons Causing Employee Turnover
Occasionally, such as when an employee retires or relocates, employee turnover is unavoidable and beyond the company’s control. Nevertheless, employee turnover frequently results from inappropriate working conditions that can be remedied.
Should employees’ daily tasks be too much for them to handle, they might need to put in more time at work. The work-life balance may thus become seriously out of whack. Additionally, there is a direct link between your company culture and employee satisfaction. A bad culture will make employees unhappy and unmotivated to work.
The turnover rate may increase by inadequate compensation packages. If they get a better offer regarding compensation and perks elsewhere, they will indeed quit their current jobs. Another cause can be a lack of opportunity for learning, growth, and advancement. Your company will be less attractive if employees know that there will be fewer opportunities for advancement in their chosen career within your business.
Ineffective management practices can also contribute to high employee turnover. As John Maxwell said, “people quit people, not companies.” Staff members might experience a great deal of stress from aggressive or unprofessional management. Regarding staff retention, recognition is also vital. Employees would want to know that their work is meaningful. They may experience emotional anguish as a result of being undervalued or poor employee treatment.
Some Effective Retention Strategies
Make a Significant Effort in the Recruitment Process
Remember that if the information in the job descriptions has a big deviation from the actual job, employees might not stay with the company for long. So take the time and effort from the very beginning of the recruitment process. Besides, you should employ workers that not only have the necessary capabilities but also share the organisational culture and behavioural values. Asking behavioural questions during the interview is one method for determining a candidate’s character and personality.
Facilitate a Healthy Work-Life Balance
Efforts to encourage employee rest and show employer empathy should also be applied. Benefits and incentives like maternity leave and an annual travel allowance are highly regarded prior to taking a job. It is an advantage in employee retention when empowering them to work in a flexible environment and schedule. A study published in the Journal of Health and Social Behaviour suggests that flexible work hours might improve employees’ well-being and, consequently, their productivity.
Recognise and Reward Employees
Recognition and appreciation will boost employees’ productivity and retention. A stimulating work atmosphere enables people to flourish, feel appreciated, and build confidence. To achieve that goal, Synergix Human Resource ERP System can help your appraisal process. With ERP software, you can easily link your appraisal scores to salary increments. Grade and bonus are pre-maintained but freely modifiable through ERP software or exported to excel.
Establish a Thorough Career Path
A clear career path is like a guide to help employees decide where to focus their future efforts. Don’t let your staff members feel that their position is unchangeable. Otherwise, they could begin to look for alternative opportunities. Encourage managers to arrange frequent team meetings to review goals and how th e enterprise can support employees in achieving them.
Create Programs Promoting Growth and Learning
Learning and advancement strengthen the company and boost employee morale. Companies may lay out a clear learning and development plan and provide staff the freedom to follow their passions. This promotes personal development and enhances people’s willingness to perform better.
Synergix ERP System is a good solution for improving employee proficiency with training. All training initiated by the company can be sent out to the employees according to employment type, designation, or any grouping. Employers can also track employee growth by the HR module of ERP software. Each employee’s spending on training/courses each year is displayed and can be accessed by both the employee and the manager.
The aforementioned tactics in conjunction with an appropriate ERP solution may allay your concerns about human resources and assist you in retaining valuable employees.
With 32+ years of expertise, Synergix offers you the experience of a customisable fully-integrated ERP system. To minimise the net cash investment, eligible enterprises can tap on several grants of up to 70% of the qualifying cost introduced by the Singapore government.
If you have any further questions, please contact us right away!