Reducing Turnover in your Small Business
A Multi-pronged Approach
Written by Deanna Hunter
The Alberta HR Trends Report put out by the Human Resources Institute of Alberta in March indicates that the cost of turnover has gone up significantly over the past year, from $16,790 to $22,600. Not surprising given the amount of lay-offs and the inevitable severance pay that employers provide. But the costs include more than just severance. Things like legislated notice requirements, the time required to manage the departure, the time and money to recruit a backfill. Maybe even the cost of having to pay over-time for someone while you are short staffed. Losing a good employee not only sucks, but can cost a ton of time and money. So its important to spend time thinking about reducing turnover.
The same report says that the most popular actions of Alberta employers to reduce turnover are:
38% better onboarding | 31% flexible work arrangements | 27% more team building events
I can definitely get behind better onboarding as a smart way to help avoid turnover. Spending time to set a new person up for success in the short term can pay huge dividends in the long run. And all it costs is some of your time and attention. Flexible work arrangements can also be a great way to retain people. Many see a direct value in having an opportunity to work from home once in a while, or to adjust their start or end times to manage family and other personal commitments. But I’m not convinced team building events have any long-lasting impact on an employees’ desire to stay at an organization. An extra staff party, bowling night, or team paint night event certainly wouldn’t make me change my mind about departing.
Reduce turnover using a multi-pronged approach. A good combination of a few well thought out tactics can offer a pretty solid value proposition to your people. And, after all, that’s what they are looking for. Long term value.
Visit the Human Resource Institute of Alberta’s website for more information. http://www.hria.ca/
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