With a new year upon us, many are taking a fresh look at key business metrics. One worth a look? Your turnover rate. To help provide some context regarding your organization's turnover rate, the infographic below provides total turnover rates by industry, as reported by employers in 2015.
Theresa M. Worman, Executive Vice President at Compdata Surveys & Consulting reminds employers, "It is necessary to scratch beneath the surface to uncover the reasons behind your turnover. Certainly, the buzz around your office will allow you to know some of the mitigating factors in your employees seeking work elsewhere, but there is more than that for you to consider." She suggests you look out for four things:
- Poor correlation between performance and pay. For instance, are your poor performers and your high flyers receiving the same pay increases? If so, your high flyers may take flight – right out the door!
- Little/No opportunities for advancement. It is important to remember that perception is more important than reality here. Perhaps you have career ladders in place, but they are not well communicated. Your managers may need assistance establishing clear paths for advancement for different positions within their departments.
- Career ladders with unachievable goals. If you spent time to establish career ladders and spell out steps for advancement, make sure the steps between levels are reasonable. If it takes more than a year or two to move from one level to the next, it can work against you and be a de-motivator to your employees. Allow employees to have goals that are clearly attainable.
- Internal equity/compression issues. During the recession, many employers skipped or postponed pay increases in some years. Employees were asked to weather the storm while the company navigated the difficulties in the economy. However, during the recession, employers were still hiring for positions essential to operations. When hiring for essential roles, employers are forced to offer new employees market competitive pay rates. This quickly creates equity issues, and can leave veteran employees feeling unappreciated.
Remember, not all turnover is bad, but the wrong kind of turnover can be costly. While there is no silver bullet that puts an end to all turnover issues, there are many creative ways to address and improve turnover rates within your organization. If you want to discuss your current challenges in regards to turnover, or total rewards, Compdata Surveys & Consulting can help you.
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From @CompdataSurveys, total #turnover rate across industries reported at 16.7% #hr #compensation
From @CompdataSurveys, #healthcare total #turnover rate is 19.0% #hr #compensation
From @CompdataSurveys, #manufacturing total #turnover rate is 14.3% #hr #compensation