Reduce Employee turnover in Employee relations

 

Reducing turnover and Employee relations

Statistics on General Employee Turnover

What percentage of employee turnover is ideal? An organization's workforce will have a 18% turn over as an average each year.

An organization should anticipate losing 6% of its workforce on average as a result of force reductions or employee terminations.

Voluntary turnover is more significant when it comes to retention, even while involuntary turnover is helpful in creating broad recruitment strategies to ensure the talent pool is vast enough to fill unfilled positions. Businesses loss of 13% occur annually due to the turnover among the workforce…

                                                                              (Oracle NetSuite.com, 2022)Mark Holliday

 

Employee turnover refers to the number of employees leave an organization vs number of employees replaced by new hiring. This aspect is crucial since it effects productivity, morale and overall performance of the organization.

A company's ability to succeed can be negatively impacted by high turnover numbers, which can result in high hiring expenses, a loss of institutional knowledge, and lower employee engagement. Success and sustainable growth depend on identifying the reasons behind turnover and putting mitigation measures in place.

Employee turnover is caused by a number of issues, such as job discontent, a lack of possibilities for professional growth, inadequate pay and benefits, incompetent management, and mismatches in organizational culture. Workers may quit in search of greater opportunities elsewhere, particularly if they feel underappreciated or unsupported in their current position. Personal factors like moving or family obligations might also have an impact on turnover rates.

Source:(Controller, 2023)

 

Reducing turnover requires significant investments in employee interactions within the human resource management (HRM) function. The management and improvement of the relationship between employers and employees is the scope of employee relations. It is the duty of HRM specialists to set up procedures and policies that support efficient communication, peaceful settlement of disputes, and worker involvement. Positive relationships and timely resolution of issues are two ways that HRM may contribute to the development of a productive workplace where staff members feel appreciated and inspired to stick around.

 

Employee Relations in HRM and Turnover Control

 One of the most important aspects of human resource management (HRM) is employee relations, which helps to reduce employee turnover. Cultivating a happy work atmosphere, encouraging open communication lines, and immediately addressing employee issues are the main focuses of effective employee relations tactics. HRM may reduce turnover by addressing underlying issues that may contribute to employee unhappiness by promoting a culture of trust and transparency.

 By putting in place thorough recruiting and selection procedures, HRM can assist reduce employee turnover. HRM can lessen the possibility of early turnover brought on by misalignment by selecting applicants who share the organization's values and culture. Furthermore, HRM is crucial to the successful onboarding of new hires, making sure they feel encouraged and involved right away.

Additionally, HRM specialists are responsible for putting in place performance management systems that offer

HRM is in charge of planning and executing benefit and pay plans for staff members. HRM can lower turnover rates by attracting and keeping top people with competitive pay, benefits, and incentives.

 In HRM, employee relations play a critical role in reducing turnover by cultivating a happy workplace, encouraging candid communication, quickly resolving issues, and offering chances for development. HRM can foster a positive work environment where employees are inspired to stick around and contribute to the success of the company by placing a high priority on employee engagement and well-being.

As per Henderson 2017 an organization can use different kinds of flexibility types to keep employees attract to the company, Functional flexibility, Numerical Flexibility and Financial flexibility are some of them that would offer different kind of flexible work methods that could attract employees into an organization.

To address high turnover, organizations need to be proactive in boosting employee satisfaction and retention. This may involve conducting frequent satisfaction surveys, offering competitive compensation packages, providing opportunities for professional development and career advancement, fostering a positive work environment, and implementing effective performance management procedures in order to identify areas for improvement. Companies can cultivate a culture that recognizes and appreciates employees' dedication and longevity by placing a high priority on employee engagement and well-being.

 

References:

           Armstrong, M. and Taylor, S. (2017) Armstrong’s Handbook of Human Resource Management Practice I, Academia.edu. Available at: https://www.academia.edu/32280546/ARMSTRONGS_HANDBOOK_OF_HUMAN_RESOURCE_MANAGEMENT_PRACTICE_i (Accessed: 03 April 2024).

         NetSuite.com, M.H. (2022) General Employee Turnover Statistics, Oracle NetSuite. Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-turnover-statistics.shtml (Accessed: 03 April 2024).

        Pathak, A. (2024) A guide on how to calculate the employee turnover rate, Nurture an Engaged and Satisfied Workforce | Vantage Circle HR Blog. Available at: https://blog.vantagecircle.com/how-to-calculate-employee-turnover-rate/ (Accessed: 03 April 2024).

         Santhosh (2023) Employee turnover: Definition, causes, and strategies to improve them, CultureMonkey. Available at: https://www.culturemonkey.io/employee-engagement/employee-turnover/ (Accessed: 03 April 2024).

         Joshi, S. (2023) Employee turnover ratio: Reasons good employees quit their jobs, FactoHR. Available at: https://factohr.com/employee-turnover-ratio/ (Accessed: 03 April 2024).

        Jefferson Hansen (2023) The hidden cost of employee turnover: Strategies for reduction, The Hidden Cost of Employee Turnover: Strategies for Reduction. Available at: https://www.award.co/blog/cost-of-employee-turnover (Accessed: 02 April 2024). 

         Controller, C. (2023) How having a high employee turnover affects your business: Complete controller, Complete Controller | America’s Bookkeeping Experts. Available at: https://completecontroller.com/how-having-a-high-employee-turnover-affects-your-business/ (Accessed: 02April 2024).