Even in the high turnover industries such as Call Centres and Retail, it is shrugged off as inevitable. The attitude is often “we have to live with it.” Very few companies take a proactive approach to reduce Employee Turnover.
Various industry specific studies have shown that employee turnover has a huge impact on the businesses. It costs more than $75 billion to just replace the more than 6.5 million employees who leave four high turnover industries that include call centres and fast food industries companies every year. This was revealed in a study done by Nextera Enterprises, a management consulting firm.
Issues ranging from poor job fit, lack of recognition or support from senior management, uncertainty about the organization’s future and poor management communication are some of the reasons why people start looking for other opportunities.
Organizations that have a good track record of retaining their people are rewarded with not only lower recruitment costs but also improved organizational performance (operational and financial) and high employee morale.
In today’s scenario of widespread staff retrenchments, cost of doing business is receiving a lot of attention, and with employees’ having a ‘free agent’ attitude, businesses need to go all out to retain their people and create an attractive workplace.
A number of measures can be taken to retain employees and ensure employee loyalty. These depend on the nature of the industry and the culture of the organization.
We work with our clients to study the root causes and come up with customised and workable solutions to address these causes and help bring down turn-over.