How to Address Your Company's High Turnover Rate

In today's highly competitive job market, managing a high employee turnover rate can present a significant challenge for businesses, regardless of their size or industry. Whether you're a rapidly growing startup or a well-established Fortune 500 company, effectively addressing a high turnover rate necessitates a strategic and comprehensive approach. 

By analyzing employee engagement data, investigating recruitment approaches, and assessing qualitative insights from managers, businesses can take proactive steps to address this issue and retain high-performing employees. In this article, Aniday will explore three effective tips to help you lower your high turnover rate and create a more stable and engaged workforce.

1) Analyze your employee engagement data

Understanding the underlying causes of high turnover requires a comprehensive analysis of employee engagement data. While it may not be your responsibility as a talent acquisition leader or people manager to calculate the turnover rate, you can still review other relevant data points to identify potential issues. Start by examining employee feedback through sources such as eNPS and pulse surveys, performance reviews, and exit interviews.

If your data reveals that employees feel disengaged with their teams or the organization as a whole, it is likely contributing to the high turnover rate. Disengagement can also lead to decreased productivity levels among the workforce. Present this data to your C-suite, including the CEO, CRO, and CHRO, to help them understand the problem and devise an action plan.

Research conducted found that companies with high employee engagement levels experienced 18% and 43% lower turnover rates respectively. These statistics emphasize the importance of crafting effective workforce engagement strategies and programs to reduce turnover.

2) Investigate your recruitment approach

An often overlooked aspect of addressing high turnover is examining the effectiveness of your recruitment efforts. Take a closer look at your sourcing strategy and evaluate whether it aligns with your hiring needs. 

If you have access to a data-driven recruiting approach, leverage analytics and real-time dashboards to assess the quality of your hires and the sources from which you are finding them.

For example, if you notice that candidates sourced from certain channels tend to have higher turnover rates compared to those from niche job boards, consider adjusting your sourcing rotation. 

Temporarily removing channels associated with higher turnover can provide insights into the impact of various sourcing avenues on employee retention.

Additionally, pay attention to the language used in your job descriptions and ensure alignment between hiring managers' expectations and new hires' understanding of their roles. Misalignment in these areas can lead to early dissatisfaction and increased turnover among recent hires.

3) Assess qualitative insights from managers

While quantitative data provides valuable insights, qualitative feedback from managers and employees is equally important in addressing high turnover rates. Engage in conversations with people managers to understand their observations and gather information regarding potential causes of turnover. Consider questions such as:

• Are employees frequently expressing concerns about work-life balance?

• Have requests for flexible schedules been denied?

• Are there issues related to internal mobility and career advancement?

• Do compensation concerns often arise in performance reviews?

• Have employees felt overwhelmed by their responsibilities?

• Were requests to explore new roles declined by team leaders?

By analyzing these qualitative insights and correlating them with relevant human resources analytics, you can gain a deeper understanding of what triggers employees to leave and contribute to high turnover rates. Data analytics also help identify areas for improvement in the hiring process, such as addressing high turnover rates or ensuring diversity in the applicant pool.

In Summary

Addressing high turnover rates requires a proactive and multi-faceted approach. By analyzing employee engagement data, investigating recruitment approaches, and assessing qualitative insights from managers, businesses can take significant steps toward reducing turnover and retaining high-performing employees. 

Remember, tackling high turnover is an ongoing process that requires continuous monitoring and adjustment. By prioritizing employee satisfaction, development, and well-being, companies can build a positive work environment that fosters loyalty and reduces turnover in the long run. Aniday hopes you find this blog helpful.