Improve Staff Turnover & Retention

Employee Turnover Rates

Voluntary employee turnover results in significant costs to businesses every year. Not only are there recruitment costs, but lost time during recruiting and training, time and effort from interviewers and the time taken to bring the new employee up to speed all result in a considerable cost to the business.

One of the most frequently quoted reasons for staff turnover is due to a lack of employee engagement generally caused by poor leadership or a toxic workplace culture. It goes to reason that organisations with good employee engagement and positive workplace cultures enjoy low employee turnover rates.

Leadership Quality & Employee Retention Rates

The central finding coming out of a recent survey of 501 AHRI members on staff turnover and retention is that average turnover is reported at around 18 per cent.

When it comes to staff retention, leadership quality matters according to the respondents, 70 per cent of whom identified effective management and leadership as the most effective staff retention strategy. The respondents clearly believe that providing a sense of purpose and direction from above is a critical factor in generating employee engagement and loyalty.

More than half (59 per cent) of respondent’s view turnover in their organisation as slightly or far too high. The demographic groups reported with the highest level of turnover are employees between 18-35 years old (37 per cent), and those in entry-level roles (20 per cent). The 50+ age group turnover rate is the lowest (6 per cent).

The top three staff retention strategies organisations have in place to encourage employee retention are providing training and development opportunities, flexible work arrangements, and performance feedback systems. Around half of the respondents also report work-life balance initiatives and a positive workplace culture as key retention strategies.

More than a third (67 per cent) of respondents believe the most effective method to retain employees is effective management and leadership. Other methods believed to be effective include positive workplace culture and career progression opportunities.

deBa creates effective management and leadership throughout an organisation and sets in place positive workplace culture. These elements are proven to reduce employee turnover and hence reduce the cost involved in this significant business overhead.