Post by moon1257 on Nov 6, 2024 2:09:22 GMT -5
Dismissal of an employee, at their own request or at the initiative of the company, always brings problems to the business. Firstly, finding and training a replacement can cost up to six salaries required for this position. Secondly, business processes are disrupted. Finally, the morale of the remaining employees drops - it has been noted that productivity in the department after dismissals decreases by tens of percentage points. Accordingly, the more people leave the company, the stronger these negative effects.
The formula for calculating employee shopify website design turnover is as follows: the total number of employees who left the company during the year is divided by the average number of employees during the same period. The result is multiplied by 100%.
Employee turnover = (number of employees dismissed per year) / (average number of employees per year) * 100%
The norm is from 3 to 7% per year. However, much depends on the industry and age of the organization. For example, in a young company, turnover can be 20%, and in the restaurant industry or retail - 30%.
We have counted at least six mistakes of the manager that lead to high turnover. Let's figure out what these mistakes are and how to fix them.
They hired the wrong guy
The first reason is that the employee was not initially suitable for the position he was hired for. Misinformation, deception, misunderstanding lead to such situations. And on both sides. The specialist could mislead about his experience and skills, the recruiter could deceive, telling about the working conditions or job responsibilities.
One way to avoid this is to be honest with the candidate. Don't promise a dizzying career if, objectively, there is no room to grow in the company. Don't overstate compensation if, in fact, this figure is achieved by several of the most effective employees in the company.
You can get an honest answer from a candidate if you abandon the “interrogation” strategy during the interview and try to talk like a human being.
Failed onboarding
The second common reason for high turnover is a poorly-organized onboarding process in the company. If a new employee is left to his or her own devices, there is a 50 percent chance that they will quit within six months.
Russian home goods retailer Cozy Home launched online courses for employees to help them adapt quickly. They included information about the company's history, service standards, and even answers to the most frequently asked questions from newcomers. As a result, turnover dropped by 42% in two years to the normal 30% for retail.
How can you help new employees adjust:
Create a plan for how the new employee will get to know the team and the company's procedures.
Place all important information—colleagues’ contacts, basic procedures, etc.—in a separate document to which the new employee will have constant access.
Make the first day of work memorable: greet the new team member with a round of applause, present a badge or flag with the company logo.
Assign a mentor to help the newcomer during the first few months. (Adaptation can take anywhere from three to nine months, depending on the position.)
Monitor newcomers' progress in adaptation and praise them for it.
Read also
You can read more about onboarding in the article “Improving the Personnel Adaptation System”
Read more
Didn't get along with the manager
Employees often leave a company because of their manager: personal dislike, rejection of management methods, lack of feedback and other factors encourage them to write a letter of resignation.
According to statistics, incompetence and inefficiency of a manager force 70% of specialists to look for a new job, and unpleasant personality traits of a manager force 56%.
The Happy Job service uses a staff survey to find out which competencies a manager "fails". The assessment is based on five parameters:
The first is whether the manager knows how to set tasks. If he does not use the SMART methodology , and his tasks are vague, employees will lose productivity, and the manager will lose authority.
The second parameter is trust. Fulfilled promises, actions worthy of a leader - all this allows employees to become attached to the manager. Without trust, the staff will view the work as temporary.
The third parameter evaluates the manager's management style - whether the manager feels part of the team or not. According to statistics, employees leave managers who make decisions alone three times more often.
The fourth parameter determines whether the manager is results-oriented. Employees like to work with goal-oriented managers.
Finally, the fifth parameter is the skill of holding meetings. Endless useless conversations waste time and spoil the image of the leader.
These are the qualities that a manager should “pump up” in order to become a strong leader and not scare away employees.
Didn't provide the opportunity for growth
Most employees strive for career and professional development. According to statistics, the first is important to 55% of people, the second - 63%. Accordingly, the lack of opportunities for growth is a significant reason to leave the company. To correct the situation, the following information must be conveyed to the team:
What skills are required for a particular position.
For what merits can you get a promotion?
At the same time, the manager should guide the subordinate: give feedback on his work, suggest what competencies should be developed. Ideally, the manager should conduct such conversations with each employee one-on-one once a week.
The formula for calculating employee shopify website design turnover is as follows: the total number of employees who left the company during the year is divided by the average number of employees during the same period. The result is multiplied by 100%.
Employee turnover = (number of employees dismissed per year) / (average number of employees per year) * 100%
The norm is from 3 to 7% per year. However, much depends on the industry and age of the organization. For example, in a young company, turnover can be 20%, and in the restaurant industry or retail - 30%.
We have counted at least six mistakes of the manager that lead to high turnover. Let's figure out what these mistakes are and how to fix them.
They hired the wrong guy
The first reason is that the employee was not initially suitable for the position he was hired for. Misinformation, deception, misunderstanding lead to such situations. And on both sides. The specialist could mislead about his experience and skills, the recruiter could deceive, telling about the working conditions or job responsibilities.
One way to avoid this is to be honest with the candidate. Don't promise a dizzying career if, objectively, there is no room to grow in the company. Don't overstate compensation if, in fact, this figure is achieved by several of the most effective employees in the company.
You can get an honest answer from a candidate if you abandon the “interrogation” strategy during the interview and try to talk like a human being.
Failed onboarding
The second common reason for high turnover is a poorly-organized onboarding process in the company. If a new employee is left to his or her own devices, there is a 50 percent chance that they will quit within six months.
Russian home goods retailer Cozy Home launched online courses for employees to help them adapt quickly. They included information about the company's history, service standards, and even answers to the most frequently asked questions from newcomers. As a result, turnover dropped by 42% in two years to the normal 30% for retail.
How can you help new employees adjust:
Create a plan for how the new employee will get to know the team and the company's procedures.
Place all important information—colleagues’ contacts, basic procedures, etc.—in a separate document to which the new employee will have constant access.
Make the first day of work memorable: greet the new team member with a round of applause, present a badge or flag with the company logo.
Assign a mentor to help the newcomer during the first few months. (Adaptation can take anywhere from three to nine months, depending on the position.)
Monitor newcomers' progress in adaptation and praise them for it.
Read also
You can read more about onboarding in the article “Improving the Personnel Adaptation System”
Read more
Didn't get along with the manager
Employees often leave a company because of their manager: personal dislike, rejection of management methods, lack of feedback and other factors encourage them to write a letter of resignation.
According to statistics, incompetence and inefficiency of a manager force 70% of specialists to look for a new job, and unpleasant personality traits of a manager force 56%.
The Happy Job service uses a staff survey to find out which competencies a manager "fails". The assessment is based on five parameters:
The first is whether the manager knows how to set tasks. If he does not use the SMART methodology , and his tasks are vague, employees will lose productivity, and the manager will lose authority.
The second parameter is trust. Fulfilled promises, actions worthy of a leader - all this allows employees to become attached to the manager. Without trust, the staff will view the work as temporary.
The third parameter evaluates the manager's management style - whether the manager feels part of the team or not. According to statistics, employees leave managers who make decisions alone three times more often.
The fourth parameter determines whether the manager is results-oriented. Employees like to work with goal-oriented managers.
Finally, the fifth parameter is the skill of holding meetings. Endless useless conversations waste time and spoil the image of the leader.
These are the qualities that a manager should “pump up” in order to become a strong leader and not scare away employees.
Didn't provide the opportunity for growth
Most employees strive for career and professional development. According to statistics, the first is important to 55% of people, the second - 63%. Accordingly, the lack of opportunities for growth is a significant reason to leave the company. To correct the situation, the following information must be conveyed to the team:
What skills are required for a particular position.
For what merits can you get a promotion?
At the same time, the manager should guide the subordinate: give feedback on his work, suggest what competencies should be developed. Ideally, the manager should conduct such conversations with each employee one-on-one once a week.