Tempering Turnover

Your company's "revolving door" may be a joke by now, with no one sure who's coming and who's going, but with unemployment rising, and concerns about a possible recession growing, it's more important than ever for employers to control costs related to employee turnover.

"In a slowing economy, it's critical employers more closely manage their expenses," says Annie Stevens, managing partner with ClearRock, a Boston-based outplacement and executive coaching firm. "
One cost they can get better control over is turnover. It costs between two and three times a worker's salary to replace a departing employee, including recruitment, training, lost productivity, and severance costs."
Stevens and Greg Gostanian, managing partner with ClearRock, offer some highlights from the firm's recent turnover research:
• The top way to reduce the turnover of front-line employees is to screen them more carefully before they are hired. "Companies need to invest more in pre-employment screening and testing, and better interviewing processes and procedures," says Gostanian.
• Better orientation for front-line workers also can help. "New employees need to know, right from the start," says Stevens, "what their roles and responsibilities are, the type of business their employers are in, who their customers are, and how each individual worker fits into the big picture."
• Don't neglect exit interviews. "Exit interviews give employers insight into potential problems with management, workplace conditions, and the competitive nature of their compensation and benefits," says Gostanian. "Exit interviews should be offered as often as possible to employees who are leaving, and their comments should be closely considered and evaluated."
• Better training of front-line workers can help slacken turnover. "Better training programs are the hands-on component of better orientation programs"” says Gostanian. "In addition to knowing why they are working there, and what their duties are, employees need to know how to do their jobs as best they can, who they can go to in case they encounter any problems, and where to find answers to their day-to-day questions."
• Giving better pay and benefits also doesn't hurt—especially when coupled with a bigger-picture approach. "Employers," says Stevens, "are using more broadly based methods that will give them longer-term results than a temporary increase in employee morale and engagement resulting from monetary incentives."


source: training magazine