Retaining your employees
High turnover is very expensive for companies in terms of recruiting costs, training costs, loss of experience, project disturbances, and more. Four key phases can ensure that you keep your good employees, according to a study on the English Web site The IT Job Board on keeping salaried employees in the new technologies sector. Sound advice, to be consulted without stinting . . .
Good measurement tools
First step: Measure turnover accurately, i.e. identify the particularities of each department and make forecasts for the years to come. The IT Job Board proposes three evaluation indicators:
- Gross rate: number of annual departures to date divided by the number of employees to date
- Stability rate: number of employees over the entire year divided by the number of employees a year ago
- Cumulative stability: cumulative length of service of all employees to date divided by the cumulative length of service minus the year’s turnover
Another parameter to be measured accurately is the cost of recruiting. The most obvious costs are those related to the search and selection of applicants, and their integration and training. The time spent by other participants—managers and human resources—must also be accounted for.
And finally, there are the indirect costs linked to the loss of expertise: decreased productivity, loss of experience, loss of reputation with customers, ineffectiveness of replacement during the learning curve and ineffectiveness of colleagues during the training period.
Economists estimate that each replacement costs between 50% and 200% of the position’s annual salary!
Reliable information
Why do your employees leave? A regular audit should enable you to understand the weaknesses of your employee loyalty policy.
Exit interviews are a superb source of information, as long as they are conducted by an independent party to guarantee the ex-employee’s candour. Internal opinion surveys, conducted by an external auditor or an on-line questionnaire, can also be revealing. It can also be helpful to ask former employees why they left and what they like about their new employer.
Long-term recruiting
Recruiting is the foundation for balanced turnover. Recruiting the wrong person will inevitably lead to a premature departure.
An effective long-term recruiting policy relies especially on relevant communication with applicants. You need to identify your company’s real needs and be upfront during interviews. The use of recruiting tests may also help you improve your selection.
Also consider auditing your suppliers: which ones have allowed you to recruit effective and loyal employees?
Finally, always keep your ears open to what your potential recruits have to say by participating in job fairs or organizing open houses.
Happy employees
Right from the start, make sure you have a good orientation system in place for new employees. Take the time to welcome them and lend a hand during the first few days, through a mentoring system, for example.
Professional development is key to avoiding departures. Employees often leave a company because another employer has offered them a promotion or because they no longer feel fulfilled in their jobs. Be proactive: regularly consult your employees outside of evaluations to know their aspirations, identify your key talents and set up career plans for them.
Compensation is also a determining factor. Make sure that you keep up with the market. Work conditions are at least as important, and include retirement plans, benefits, work hours, etc. Don’t hesitate to use new types of benefits like flextime or telecommuting for your key talents.
Last but not least, don’t neglect your corporate culture, which must be more attractive than that of your competitors.