Risk Management Strategies To Reduce Company Turnover

Company turnover is one of the biggest yet least spoken about problems that organizations of all shapes and sizes suffer from today. According to a study by the Hay Group and the Centre for Economics and Business Research, the employee turnover rate in the UK will grow to 23.4% within the next five years. A huge percentage of those staff members are in entry or intermediate level positions.

Some companies may breathe a sigh of relief that these statistics do not include upper management positions, but the loss of entry to intermediate staff is will stagnate the growth of your company. Organizations need to ensure that intermediate staff is not just another cog in the corporate wheel. They need these members there so that they can be nurtured them and encouraged to grow within the company. This is what will produce employees who are engaged, productive, and focused on improving your organization.

Risk Management Strategies To Reduce Company Turnover

Reducing Company Turnover through Risk Management

One of the reasons why organizations are contacting risk management consultants today is for this very reason: to reduce company turnover. Organizations can begin mitigating this risk today by using the following strategies:

Have a Training Plan for Each Position

Every position should have a solid training plan in place so that the new employee feels comfortable in his or her job. This training plan should include:

  • In-depth information and guidance on how to perform key functions for that position
  • An introduction to the organization’s culture
  • Information about career growth and development

The training you use should go beyond simply covering what the job will entail. It should make the employee feel as if this is the organization he or she can see himself or herself growing with.

TIP: The training you provide does not only need to be person-to-person training. Many individuals (particularly Gen Y staff) may even prefer training delivered through technological devices, such as an online training program or a PowerPoint presentation.

Have an Open Company Culture

When an employee believes that he or she can enjoy a successful long-term career with a company a company, the company culture must reflect that. Management and leadership should try to have as much of an “open door” policy as possible and be transparent in their communications with staff. They should work with them to develop career growth opportunities and plans to ensure that they are able to move up within the company.

Hire Staff Based on Character and Not Skill

Skills are important. But as any hiring manager knows, there is no shortage of candidates who possess the skills and training necessary to enter into a role. More recruitment agencies are stressing the importance of hiring staff based on their character. After all, skills can always be taught while character cannot.

Don’t Forget the Exit Interview

Fewer organizations than ever are conducting exit interviews when a staff member leaves. Regardless of how long the employee has been with the company, be sure to sit down with those who are leaving to gain an understanding as to why they have chosen to quit. Ask them questions such as if they felt that they were provided with the training and support necessary to perform their job, and if not, what would have helped them more.

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