Employee turnover costs businesses a lot in terms of lost knowledge and productivity. High turnover rates can also lead to excessive training costs. For these reasons and more, companies increasingly say that, for them, controlling employee turnover is either an important or urgent matter.
One talent-acquisition professional found that, across the board, one-third of new hires last only about half a year in their new position. Another third of employees will start looking for a better job unless they get a pay raise within their first year. As a matter of fact, among firms that employ more than 100 employees, 33 percent of them, on average, have already returned to the job market.
Especially in light of current tight labor markets, companies need to find ways to reduce the volatility of their human resources. Although you can start this process by measuring turnover, such data only help if you can understand the underlying causes of the problem in your company.
So, in addition to collecting data, you need to properly analyze it. When you know why your employees want to leave, you have a chance to find ways to improve retention. You can also lay the groundwork to progressively make your company a better place to work. In other words, your data can help you supply a better experience to future employees.
The Importance of Employee Journey Data
Your company should track your employees throughout their entire journey. Data points as diverse as attendance records and performance reviews all can contribute to a data-driven retention strategy. Incidentally, additional sources of information, such as employee surveys, contain self-reported employee data and, therefore, fall outside the realm of big data.
Generally speaking, for each team member, you should collect information such as engagement level, operational efficiency, work habits, and attendance. Effective data analytics software will take the information you have and predict which of your employees are most likely to quit. In response, you can proactively target those employees with incentives that will increase their level of job satisfaction.
Implementing Solutions
Avoid the temptation to try to find a one-size-fits-all solution for all your retention issues. Instead, use your analytics to choose a personalized solution for each of your employees who seem ready to quit. For example, offering either flexible or non-traditional work arrangements can improve the work-life balance of your employees.
Options such as telecommuting can help relieve the stress your employees experience from a lack of balance between their work and personal responsibilities. Additionally, the ability to work remotely empowers workers to reclaim the time they would ordinarily spend on their daily commute. Furthermore, telecommuters can produce more than their office-bound peers, do better quality work, and reduce your operating overhead.
Despite its popularity, telecommuting may not provide a suitable incentive for your entire team if not executed properly. Keeping the same work hours might just not be enough. Some of your workers may respond better to a flexible work schedule that helps them better manage their personal responsibilities with school-aged children or elderly loved ones. Other options such as continuing education and well-defined opportunities for advancement may also work to keep some employees satisfied.
Continuous Analysis
Collect data that attests to the effectiveness of each of the incentives you offer. In the first place, this practice can validate your implementation. In general, workers are 75 percent more likely to stay with their employer for the benefits they get. So, if your telecommuting program fails to come close to that result, you may need to determine what you did wrong.
Sometimes, employees simply fail to respond as anticipated to your retention strategy. For this reason, you need to know as soon as possible so you can take corrective action. As you analyze your results, you can take steps to constantly improve your policies and procedures. As your effort becomes more effective, you will become more adept at troubleshooting employee turnover issues.
In conclusion, employee turnover can drain your company of vital capabilities, knowledge and profits. So, use big data to help you analyze the many factors that influence employee satisfaction throughout their stay at your firm. Respond by taking steps by offering the right incentives to the right people, and assess your results. In the end, you will reduce your training costs and benefit from improved morale and a healthy company culture.
