Back to Basics: What Is Employee Turnover Rate?
Your turnover rate is 11.1%. Now let’s add some context.
According to a user survey from LinkedIn, the global turnover rate is about 11%. So, by the worldwide average, you’re right on track. But that average varies wildly by industry, region, and, more frequently within the tech industry, by occupation.
It often isn’t enough to calculate one turnover rate for the entire company. Factoring in variables like industry, region, and the occupations in your company is a start. You might also want to include duration of employment. If you have a disproportionate number of employees leaving within 18 months consistently, that’s something you want to know.
What contributes to employee turnover?
In short, everything contributes to employee turnover. How you hire, how you treat employees, how you develop and nurture talent, the attitude of management, even, as the kids say, the vibe.
Here are some of the most impactful areas of employee retention and what shapes them.
- Talent acquisition: Your research into your company’s retention performance should start at the beginning. Look at how you portray your company and your values to potential applicants and evaluate whether you’re living up to that portrayal.
- Hiring: An employee’s first exposure to your company comes during the hiring stage –and a first impression is lasting. Ensure the application process is seamless, that communications are timely and consistent, and that the interview stages aren’t overly time-consuming.
- Onboarding: Starting a new job can be overwhelming for any employee. Remove unwanted stress from the onboarding process by making sure new hires are promptly connected to the resources they need and the people they’ll be working with. You can also make managers an active part of the process to help ingratiate new hires.
- Performance management & development: It won’t take long for an employee to gauge whether they can see themselves growing personally and professionally at your company. Assess whether your company has clear avenues for promotion, opportunities for professional development, and a culture of consistent feedback and support.
How do you reduce employee turnover?
There is no single tactic to deploy that will reduce employee turnover. Reducing turnover rate requires a strategy that should touch every facet of your business.
By addressing impact areas of retention, you’ll find that you’re not “reducing turnover” so much as you’re ensuring your employees are engaged and valued. And that’s the real goal.