Employee Turnover is: cause, effect, and how to prevent turnover on employees

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Employee Turnover is: cause, effect, and how to prevent turnover on employees

Employee Turnover is cause effect and how to prevent turnover on employees

Employee Turnover is a condition of office staff who resigned and their position was replaced with others. This condition is very common in various companies.

Employee Turnover can provide the benefits of Bilal staff who are replaced to have better performance than staff who resign. But, if the Employee Turnover number is very high, the company will lose money.

So, why can companies lose if the Employee Turnover number is too high? What is the best way to control Employee Turnover? Let’s discuss together below.

Understanding Employee Turnover is

Reporting from the Wikipedia page, Employee Turnover is an old employee replacing an employee with a new company. There are two things that make employees leave the company.

The first thing is because it is voluntary. There are many causes that can make voluntary employees submit resign. Starting from getting a better job, getting a higher salary offer, want to focus more learning, etc.

The second thing is because it is forced, like the layoffs carried out by the company. But, this second aspect is very rarely used as a benchmark in calculating the Employee Turnover numbers. Increasing employee interest to resign voluntarily what must be considered more attention, because it is usually associated with the internal management of the company.

Causes of Employee Turnover

1. Wrong recruitment

There are times when the recruitment conducted by the HRD team is not included clear information related to work, so that the prospective applicants do not understand the work that will be carried out, and they cannot get a picture of the challenge.

This causes employees to be wanting to get out of the company. Therefore, it is very important for you to include the job description clearly and maintain the description of the job.

2. The lack of growing opportunities

There are times when new employees have not been able to adapt well. They need more time to be able to learn and develop. The more employees are given enough time to adapt, the level of the employee turnover will decrease automatically.

Often, this opportunity to develop is the cause of the increasing number of Employee Turnover. To avoid this problem, there is a necessary employee orientation program for employees who have just joined.

3. Bad manager

Generally, poor managers will put more pressure on employees. Although not all managers like that, bad managers will assume that employees are underneath as an outlet of anger for their success.

To reduce this case, it is a good idea to provide leadership training in managers. Leadership training will provide fresh insight at the manager to be able to treat its subordinates well.

4. Life is not balanced

The number of tasks outside the city or overtime that continuously will make the employee not feel at home to work on a company. This will make the Employee Turnover number increase because the life of employees becomes unbalanced between personal life and office hours.

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Especially for those who are married and have children, because they need personal time at home.

For this reason, it is reduced or held overtime hours and gives a balanced life to employees so that they are happy and can enjoy the results of their work.

5. Do not appreciate employee opinion

The opinions provided by each employee are very important. Employees will be very happy if they are given the opportunity to contribute the thought that makes the company become more developed.

However, if the opinion or opinion of employees cannot be heard properly, the employee will also feel not valued his opinion.

Due to the high turnover rate

The high level of employee turnover or the number of employees who entered the company signaled something was not true at the company’s management level. Whether it’s from the salary given, the lack of benefits, or an unhealthy work environment.

The increase in the number of Employee Turnover will affect many aspects of the company, including:

1. Financial losses

Recruiting new employees is not an easy and cheap thing. Recruitment will take a lot of costs, starting from paying vendors to open jobs, process interviews, training, until choosing employees who have the same ability as previous employees. What’s more if you have to pay severance pay for employees who are resigned.

2. Productivity decreases

Finding a replacement for new employees who resign will certainly need a lot of time. Some companies need up to a month or even longer. So, it will make the productivity level of other employees decrease due to the work of the employee who resigned.

3. The decline in the company’s profits

In the end, the decline in the level of productivity of the company will affect corporate profits or profits. There will be a lot of work that cannot be resolved properly, the sales figure has fallen, and will eventually have an impact on the benefits of the company.

How to reduce the number of employee turnover

Basically, there is no definite way to be able to make employees to have a taste of high loyalty to your company. But, if you try to understand what is actually needed by the employee, then you have headed in the right direction.

Some things you can do to lower the number of employee turnover are as follows:

1. Find the right employee

In this case, you must be able to find employees who have the right ability. In addition, you also have to find out whether the employee matches the culture of your company, can he work in teams or other requirements that you must pay attention to.

The ability of everyone can still be trained, but the personal character of each individual will be difficult to change.

2. Competitive salaries and facilities

Although salary is always the main attraction of each employee, the facilities provided by employees are also a thing you can pay attention to. Allowances such as insurance, old age insurance, to other facilities as per allowed to work in homes and flexible working hours you can offer to employees so that they feel at home to work in your company.

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3. Effective training

If there are employees who are confused in doing their work, it can be because you have not provided effective training for them. Effective training will make employees no longer confused in doing their work.

4. Balanced working hours

Give your employees the opportunity to be able to enjoy the results of his hard work. Don’t let them work too long or prevent them from taking their cutting rights. When forced, give overtime salaries to employees who work outside working hours.

5. Do not maintain toxic employees

There will be no use you provide a high salary, good facilities but there is an employee who poison others to get out of the company. This should not be left, it would be better if you lose employees who have this trait.

Even though the performance is good, it would be better if you lose him than losing half of your employees.

6. Develop Employee Engagement Strategy

Making an Engagement Strategy is by creating a pre-employee program, such as creating an incentive, reward, compensation, skill training program, or flexibility of working hours.

In addition, the company must also be able to apply performance interviews. This will be very useful so that the company can evaluate, and determine the next steps that must be carried out and developed.

The company must also open up more by conducting a survey of satisfaction levels to employees, at least once a month.

7. Planting culture and work environment that is friendly technology

If we talk about technology it means we talk about convenience. Cultivating technology to companies is as a step to meet employee needs. Like using technology in accounting applications to fulfill the company’s accountant or financial section in carrying out his task.

Another example is to provide a personal laptop for its work purposes. Moreover, when this pandemic or environmental crisis, you must be able to equip each employee with an office laptop so that they are no longer confused while working at home.

Conclusion

Entering the expanation of employees in a company is a very common thing. But, if this happens often, it will have a negative impact on the company. For this reason, the company must be able to reduce the number of Employee Turnover this to a minimum so that there is no more severe losses.

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