There many challenges faced by organisations in today’s corporate environment. Retaining employees has become one of the biggest challenges that organisations try to overcome. There are many reasons as to why people leave organisations or change jobs frequently. Most of these reasons could be caused by lack of skills by colleagues, poor management skills possessed by the senior management and immediate bosses, even self-dissatisfaction and other personal issues.
Modern day working culture has changed drastically causing higher employee turnover rates in many organisations worldwide. The old school thought of staying in one company for years and growing with it is no more. When employees feel that they are not getting what they expect from the organisation or not happy with what they are being assigned to do they tend to find another job and leave. Organisations are not at all happy with this trend as it impacts the organisation’s productivity and overall performance.
So how does this affect an organisation? Does it only affect the management? Or doesn’t it affect at all? Higher employee turnover could significantly affect the organisation. Poor management is a main cause that would increase a normal employee rate to an excessive level. The costs of employee turnover are very high for many organisations. Cost could be identified as recruitment, selection and training of new people. This could affect the financial performance as well as employee morale. Poor employee morale could negatively impact the efficiency and effectiveness.
Also the impact could go to the extent of creating negative word of mouth which also could affect the brand name of an organisation at large. Increase in the work load, thereby reduction in the productivity also could affect the final outcome of a company. This is worst when a large number of people decide to leave the company at the same time. Finding replacement for each and every person will be a hard task for the HR managers as well as the senior management of the organisation.
It is important and obviously, necessary to reduce the employee turnover rate as it is not so healthy situation for an organisation. Firstly the organisation should identify the main reason as to why people leave. Basically taking actions according to the reasons found out can help reduce the employee turnover rates. However it is identified that organisation should focus on this matter from the recruitment stage of an employee. Organisations should explain clearly the requirement to the candidate and need to make sure that they hire the perfect fit for the job and develop their career from there on.
Being very employee oriented, carrying out employee skills training programs and the most importantly deciding on how the organisation pay employees have an impact on the employee turnover rate. Reduction in employee turnover rate would help the organisation to attract, recruit and retain the best talent within the organisation.