If there is one issue that management constantly finds itself tackling, it is the ongoing battle with staff turnover and its consistency. In the UK in 2005 the overall employee turnover rate was 15.7%. Interestingly, one of the highest levels of employee turnover is in call centres, which commonly exceeds.

There are many reasons for this, and are separated into push and pull factors. Some of these include:

Pull: Promotion outside the organisation
Push: Lack of development/career progression
Pull: More desirable working environment
Push: Discrepancies with employee’s/management in current role

Measuring Your Employee Turnover

There is no specific figure that determines whether your employee turnover is problematic, and in some cases a high employee turnover can actually be beneficial to a company’s development and efficiency. But what are the pros and cons of a high employee turnover

Pros

• A poor performer is replaced by a more effective employee

• Help reduce staff costs where business levels are unpredictable month on month

• New skills and ideas are constantly brought onboard and utilized.

Cons

• Cost of covering the vacancy (time and money) until a new employee is found

• In-house administration time spent during the recruitment and selection process

• Induction training required for the new employee

Reducing Staff Turnover

The most effective way of improving staff retention is by finding out why employees leave in the first place. Exit interviews are suggested, but can sometimes create difficult situations for an employee to be honest. If one of their reasons for leaving is an issue with management for example, they may feel by discussing this in their exit interview will affect their referral from the company, as unfounded as that worry may be.

Alternative approaches to improving retention can include:

1. Confidential attitude surveys involving questions as to why the employee wishes to leave and questionnaires sent to ex employees around 6 months after departure

2. Make all job previews realistic. A high number of employees that leave within the first few months of starting are due the role not meeting expectations described in the initial recruitment process.

3. Maximise opportunities for employees to progress their careers within the organisation. If this is not feasible, look for sideways moves that vary experience and keep the employees interest.

Ultimately the cost of a high staff turnover varies from business to business. Whether a critical problem or a manageable occurrence one thing is for sure… an employee that is retained and developed is far more valuable, everytime.

 

Ocean Consulting is a highly professional, privately owned, recruitment consultancy, specialising in Permanent & Contract recruitment within the commercial sector. With over 14 years recruiting experience within the senior management team, we focus on placing all disciplines from Receptionists & Administrators right up to Senior Manager / Director level positions within the Thames Valley area & beyond and have an excellent reputation gaining a high majority of our business through word of mouth. Why? We are very passionate about making a difference…it’s that simple

If you would like to know more about Ocean visit our website at www.dipintheocean.co.uk or reply to this e-mail and take@dipintheocean.co.uk
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