No matter the industry, everyone involved in hiring will experience it: an employee leaves unexpectedly. Whatever the reason, there are issues inherent in the cost of turnover, but there are also ways to ease the process, positioning your company for the best possible immediate future.
Inc. Magazine reported that there are several hidden costs in the process of turnover, many of which are hidden. There’s the prospect of lowered productivity, where that person’s job is left vacant until the replacement is ready to take the reins. In many cases, this often leads to the remaining staff becoming overworked, which can be an issue for both quality of work and happiness about the job itself. It’s important to avoid this from happening and taking over, as it can often lead to a surge of more unhappiness and turnover throughout the company.
When it comes to these costs in monetary form, they can often run as high as 150 percent of a person’s annual salary. This means that retention efforts need to focus on not only replacing the departed employee, but doing so in a way that protects them from leaving as well, putting you in the same position as before.
So how do you do it?
When it comes to filling this new position, the first and most important step is to not panic, according to Business News Daily. Many employers may panic in this position and take on the first person they find who fits the bill. While this may pay off in some situations, it’s much more likely that rushing into things will lead to a poor reception. Instead, make sure that the company has a backup plan in place in the meantime, allowing you more of an opportunity to play the field instead of making an immediate decision.
Once the clock is ticking, though, you should work to find out what caused the rift with the last employee and try to fix the problem in the future. Reviewing what happens in the employee’s exit interview is a good place to start, as you’ll be able to see how employees felt about different policies put into place. If any of them get a resounding negative review, look into changing them for the future. Some issues may have been a personal problem from a single employee – others may be company-wide. By working to fix these problems, you’ll have a better chance of presenting the company in a better light to your next prospective hire, which can have huge benefits in a long-term context.
Be realistic and respectful
Drawing in the best employees possible takes more than just this effort, Forbes said. There are additional strategies that can have an even higher influence on employee retention. It’s important, as one example, to set realistic industry expectations from the start. Being clear and honest with an employee about their roles and responsibilities will cause a few to shy away from the opportunity, but it will help draw in those who want to be respected.