Jan 19, 2014 // Andrew Stroup
Employee turnover has become a serious metric for companies and their HR department. Hiring is typically a requirement for company growth as adding new talent to the team should lead to a higher overall work output and ultimately revenue. However, significant investment in training and integration into a company’s workforce and culture can be costly, both monetarily and financially.
Unfortunately, employee turnover is a fact of life for all companies. Turnover varies by industry, but the average yearly turnover for all industries (according to the U.S. Bureau of Labor Statistics) is 32 percent. This means 3 of the next 10 hires you add to your team will leave the company before the cost of training and salary are offset by their productivity and contribution. Those costs, as well as adding in the cost of a newly vacant position and finding a replacement (typically an 8 week process), can cause significant impact to your bottom line and other employees.
There are several factors that impact employee turnover, ranging from the perception of being undervalued to a lack of flexible work schedule to high stress work environments. Reasons can vary, but the only true way to reduce employee turnover is engaging and understanding your current employee’s workforce likes and dislikes and finding creative solutions to solve them.
Finding and implementing solutions to employee turnover can be very challenging and sometimes expensive. Although there are no silver bullets to employee turnover, there are efforts to reduce the impact to your company. These efforts range from re-evaluating hiring processes to find the “right person for the right job” and facilitating a more enjoyable work environment with company hosted events to reduce stress and support team bonding. Additionally, reducing costs for on-boarding and out-processing employees is also an area of cost savings and significant time consumption, which has been addressed by a rise in HR focused Software as a Service solutions that provide support to your hiring manager and HR team.
CommonKey helps solve the HR user management issue by easily tracking and managing team members access to company accounts and documentation that are critical to business operations. We understand the difficulties of hiring, facilitating a productive and rewarding work environment, and managing the workforce’s HR needs. You shouldn’t have to worry about whether the employee that just departed has the login to your bank account or web server or what accounts the new employee needs access to, we’re here to help so you can focus on what’s important, your customers.
The bottom line regarding employee turnover is that this is and will be a consistent problem every company has to address and arming your HR team with the right tools is critical.
