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A moderate level of staff turnover can be good for a business; it means fresh ideas and approaches. However, every organisation needs to have a strategy in place to retain the high performers that give it a competitive edge; they are the ones you can’t afford to lose.
Ignoring high levels of employee turnover can be very costly; it lowers internal morale and it could harm an organisation's external reputation and cost it business. So, understanding the importance of staff retention is vital.
It's essential to try to learn more about the reasons why people resign. The reasons might simply be more attractive jobs elsewhere or chances for lifestyle reshapes, in which case it might be out of your hands to retain these employees. However, many people leave their jobs because they are dissatisfied with their current situation. There are ways of retaining these people, highlighted below.
In our experience the most common negative reasons for leaving a job are:
However, while companies do conduct 'exit' interviews to try and ascertain the reasons behind a departure, because of the necessity to obtain a decent reference, people often tone down or completely fabricate their reasons for leaving.
By adopting a mix of the following methods, you should see an improved staff retention rate:
Make your employees feel valued and proud of the work that they do will not only do wonders for your employer branding strategy, but will immediately improve your turnover rate. Develop a work culture that encourages diversity and creativity and put in place effective anti-discrimination policies that promote flexible working, where possible.
Adopting a strategy for staff retention is not always easy, but it will greatly benefit your organisation.
For more advice on the matter read Michael Page's other articles on staff development and retention.
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