Turnover is a lot of things\u2014frustrating (or worrying) for managers, a bad omen for would-be hires, disruptive to the team, and expensive. It\u2019s also\u2014usually\u2014preventable.<\/p>\n\n\n\n
If you\u2019re a numbers person, I can tell you that research by Boushey and Glynn (2012) suggests that replacing an employee can cost anywhere from a fraction of their salary to more than twice their salary, depending on the role. The figure \u201c200%\u201d is thrown around a lot, but that comes from estimates for senior, executive, or highly specialized positions\u2014not the average employee.<\/p>\n\n\n\n
Still, it\u2019s not just money you need to spend in order to refill that role. It\u2019s your time and your team\u2019s time, especially if they\u2019re taking over tasks to fill in gaps or helping train the new hire.<\/p>\n\n\n\n
So, to put it bluntly, turnover stinks all around.<\/p>\n\n\n\n
If people keep leaving your organization, it\u2019s not \u201cthe market.\u201d It\u2019s not people being \u201cgreedy for more money.\u201d It\u2019s not \u201cthis younger generation not wanting to work.\u201d<\/p>\n\n\n\n
Let\u2019s get into why people leave and what actually works for reducing turnover.<\/p>\n\n\n\n
Most large companies do exit interviews. Fewer seem to know what to do with the information they collect.<\/p>\n\n\n\n
An exit interview is like the check engine light on your dashboard. You can keep driving and assume it\u2019s nothing serious, but the smarter move is to find out what triggered it.<\/p>\n\n\n\n
When conducting an exit interview, two things matter: asking the right questions and looking for patterns.<\/p>\n\n\n\n
If you want insightful information, ask insightful questions. For example:<\/p>\n\n\n\n
Every exit interview is one piece of a puzzle. Look for patterns. For example:<\/p>\n\n\n\n
Sometimes, bad hires can be traced to a bad hiring process. The biggest culprits are usually:<\/p>\n\n\n\n
This is where using pre-employment assessments<\/a> can really make a difference.<\/p>\n\n\n\n Some industry research suggests that pre-employment assessments are associated with lower turnover and better hiring satisfaction. For example, Aberdeen Group reported that companies using pre-hire assessments saw a 39% lower turnover rate among high-potential talent and were 36% more likely to be satisfied with new hires.<\/p>\n\n\n\n First\u2014and I can\u2019t emphasize this enough\u2014pay people fairly. Expecting professional-level work for an entry-level salary is unrealistic, frustrating, and a red flag so big, astronauts could probably see it from space. Ditto if you\u2019re hiring someone for an entry-level role but expecting them to have years of experience, essentially eliminating most new graduates from the pool. And if a person is expected to \u201cwear many hats\u201d\u2014in other words, do the work of three people\u2014then their salary should reflect that.<\/p>\n\n\n\n If you genuinely can\u2019t afford to pay someone based on market value or experience level, then strive to offer other meaningful incentives, such as learning opportunities, mentorship, more time off, a four-day workweek, or the option to work from home.<\/p>\n\n\n\n Second, don\u2019t assume that people always leave because they want more money. A cutthroat culture, office politics, micromanagement, unreasonable workloads or work hours, or saying \u201cwe\u2019re family\u201d while treating people like that relative you only see at reunions can be driving forces too.<\/p>\n\n\n\n So if your retention strategy is, \u201cLet\u2019s throw more money at it,\u201d then you\u2019re not seeing the big picture.<\/p>\n\n\n\n First impressions matter, and onboarding is where those impressions are either strengthened or burned to a crisp. I offer many tips in my blog, \u201cCrafting a Fun\u2014Yes, Fun\u2014Onboarding Process<\/a>,\u201d but suffice to say that effective onboarding needs three general things:<\/p>\n\n\n\n If you want your new team member to make an impact as early as possible, then you need to give them the time and prep work to do just that. Even if the person has 20+ years of experience, they still need to learn how things are done in your <\/em>company.<\/p>\n\n\n\n There\u2019s a reason you keep hearing \u201cPeople don\u2019t leave companies\u2014they leave managers.\u201d It\u2019s because a manager\u2019s attitude and behavior can play a decisive role in determining whether a person stays or quits. For example, in our study<\/a> on management\u2019s role in turnover:<\/p>\n\n\n\n Bottom line: If your leaders can\u2019t…<\/p>\n\n\n\n\n
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3. Fix the salary and<\/em> the job.<\/strong><\/h3>\n\n\n\n
4. Don\u2019t onboard like it\u2019s the 80s.<\/strong><\/h3>\n\n\n\n
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5. Train your managers.<\/strong><\/h3>\n\n\n\n
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