Employee retention is often the most important factor when evaluating employee performance and welfare. The length of service a colleague has is often correlated with their happiness, compensation, and prospects.
We also need to take into account employee attrition. It is a difficult subject, and we have covered it extensively in our report, The Top 10 HR Stats to Bring to the Board. It’s not in the best interest of any employer to examine high employee turnover, but it is important to find out what the company’s problems are. What questions should you ask yourself?
Why do employees leave their jobs?
Attrition rates can reveal a lot about a company’s culture. To get a holistic view, it is helpful to start with absence rates. According to the CIPD, employee absence has reached its highest levels in a decade. This suggests that the British workforce is under pressure.
What is my absence rate?
Using tools like Bradford Factor Calculators to study absence rates can reveal much more than you think. These reports will show when an employee has reached a certain threshold. It may prompt further discussions about the reasons for their absence, such as chronic illness or overworking.
Do you have any concerns about your department?
Not all jobs are created equal. You may notice a high level of staff turnover within certain departments. This could be an indication that the department is mismanaged or that employees are overworked. It may be that there are internal conflicts within teams.
Is there a general lack of engagement in the workplace?
The staff must feel that they are not just a cog. It’s impossible to know how your team thinks without checking in. This could lead to more resignations. Metrics such as employee net promoter scores or the employee satisfaction index will provide essential feedback. This will make staff feel appreciated and may even stop them from looking for other jobs.
The key findings of a study on employee attrition
Staff turnover can give a better understanding of the industry. Since the beginning of COVID-19, for example, there has been a massive increase in the demand for software developers. We may also see an increase in competition as more roles become available, which could lead to attrition.
If staff aren’t feeling valued, rewarded, or challenged, they may look for other opportunities – especially if their attrition statistics show that the role is in high demand. Leaders can make better decisions by analyzing trends in turnover within a department or company.
How to measure employee turnover
It’s not enough to measure employee attrition. You also need to know the reasons for leaving. Reports can be distorted by things like failed probations, fixed-term contracts at the end of their term, or redundancies.
Measure only the staff that has left on their own accord. Calculation is easy:
Use this information to compare your organization with other companies or competitors.
Even if the retention rate is high, it doesn’t mean that HR leaders should relax. It is important to study the labor market in order to ensure that employees don’t feel compelled to stay and perform poorly due to a lack of other options.
Measure your employees’ performance and invest in them with the right tactics
Any long-term plan for resilience and wellbeing should include investing in your staff. Many will have survived the global pandemics or staff shortages. However, investing in your employees should not be reactive but proactive.
It is important to measure the most important things. In our new report, The Top 10 HR Stats to Bring to the Board, we examine the real facts and statistics that will impact your bottom line. Take action today with these insights.
If you want to improve aspects of your company, such as the employee turnover rate, Download our brochure. Contact us now and learn how our HR and payroll system can transform your organization.