It's no secret that employee turnover numbers are a watermark for how engaged employees are and how much they believe in the business they work for. High turnover is a sign of an unsatisfied workforce. A company with large turnover is likely to be affected by an ongoing issue that is negatively impacting hires.
If they intend to bring new blood into the company and ensure it stays, human resources departments should make diagnosing this problem a priority. However, it's not nearly as simple as it first sounds. There are several unique elements affecting employee turnover numbers across an institution. These 11 contributors to Forbes Human Resources Council pinpoint what those elements are and explain why each can impact the company's employee turnover.
Members share the most critical factors to consider when determining the root cause of turnover.
Photos courtesy of the individual members.1. Survey Data About The Company Experience
Data will be invaluable to uncover patterns. Pulse surveys will help drive insight, too. But data and surveys are only part of the solution. Approach the issue holistically and ask, "Is leadership training adequate? Do managers have regular conversations about employee engagement?" Look to data first, then look at how company programs, policies and leaders are contributing to the employee experience. - Susan Tohyama, Ceridian
2. Your Managers
Take a look at your managers. We have just completed some interesting analyses of nearly 40 million employee survey responses, correlated with attrition and exit surveys. We found that employees with a negative perception of their manager leave the company at a rate of 56% more than is usual. Further, managers who are disengaged themselves have 45% more direct reports leaving the organization. - Tracy Maylett, DecisionWise
3. Yourself
The first thing I look at when it comes to turnover is myself! As a human resources manager, it is my job to make everyone feel comfortable with their job. We are all family here. I make sure daily I walk my plant floor and speak with every associate so I can address each problem before they become serious. This helps. I am my own turnover diagnosis. - Melissa Bolton, Perlon Hahl Inc.
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4. Stay And Exit Interviews
Be proactive. Look at stay interview data, employee engagement data and culture assessments. This will tell you what current employees are feeling now so that you have the opportunity to address the issues before they leave. At the point that someone leaves, exit interview data can offer some insights, but it may or may not be reflective of current employees, the ones you are trying to keep. - Lotus Buckner, NCH
5. Why Good Employees Stay
Attempts to diagnose employee turnover are often subjective and reflective, based on exit data and qualitative feedback. I tend to take a more objective and forward-thinking approach. Rather than focusing on why employees choose to leave, I focus on why good employees choose to stay and work to replicate those factors to increase retention. There's no war for talent when you're a great employer! - Iris Ware, City of Detroit
6. Employee Networks' Inclusiveness
Nothing is more telling of turnover than an organization's culture — the inclusiveness of employee networks. Do employees engage often and meaningfully on internal/external professional and social networks? Today, with most communication going digital, it is easier to identify micro issues in engagement and remedy quickly, sometimes instantaneously. Organizational network analysis (ONA) helps! - Jay Polaki, HR Geckos
7. The Root Of Disengagement
If employers experience an increase in turnover, it’s often due to a lack of employee engagement. This, in turn, can be caused by a number of problems, and efforts should be made by management to pinpoint the source when turnover spikes. Employee satisfaction surveys, retention interviews, one-on-ones and even an anonymous suggestion box can all be used to determine the root of disengagement. - John Feldmann, Insperity
8. Patterns
Is there a pattern within the same department/manager, or is it more systemic? This could be an indication of poor leadership, poor recognition/feedback, poor communication, lack of growth and advancement opportunities, culture, or other grievances. If it's a department/manager, it must be addressed quickly to mitigate additional risks. - Jennifer Beezer, SPHR, SHRM-CP, FOREO Inc.
9. Performance, Recruiting Mistakes
Employee turnover can have one of several reasons. First of all, a continuously low performance — assessing individual performance and acting accordingly is a standard management task. Bad recruiting — any time you go for "it´ll do" you run the risk of having to start the hiring process all over again. And finally, bad management — too often, very obvious, too seldom followed by any consequences. - Reinhard Guggenberger, Soaring Fox Consulting
10. Employee Net Promoter Score
Employee Net Promoter Score, or eNPS, is a good leading indicator of turnover, along with an analysis of unexpected leaves of absence and negative exit feedback. Ideally, by reviewing this data proactively, HR leaders can get a handle on turnover before it happens and be in front of bubbling issues before they turn into an insurmountable problem. - Tracy Cote, Zenefits
11. Retention Versus Turnover Rates
I like to look at retention rate and turnover rate side-by-side. If you have a team of 10 people and nine are stable but one specific role transitions three times within the year, the pure turnover rate is alarming. But if you look at retention, nine of your ten people are still part of the team. This implies you have a problem with a specific role and not necessarily the whole department. - Tammy Kelley, Bethany Christian Services
