As the saying goes: the proof is in the pudding. By studying your business’ turnover data, you can learn many truths about your organization. Turnover is inevitable and must be anticipated. To anticipate turnover effectively, the collection of data is a necessity.
While considering the importance of turnover data, it is also essential to understand the different types of turnover. Losing an employee with great experience who consistently performed at a high level is a big loss. Similarly, losing a highly-skilled employee in an industry where these workers are at a premium and also scarce could prove to be a big hit to your organization.
Losing someone with little experience who consistently performs at a low level has less of an impact. Likewise, losing a relatively low-skilled employee in an industry where low-skilled employees are plentiful is also less of a loss.
This data is crucial because it gives you an understanding of why individuals are likely leaving your company. Here are a few things the data may reveal and how to obtain that data.
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Turnover is expensive
Turnover and recruitment go hand in hand—when you lose an employee, you need another to fill his or her role. Depending on the position you’re trying to fill, the dollar signs will continue to rise.
- The average cost of replacing an hourly employee is $1,500.
- The average cost to fill a technical position is between 100 – 150% of the former employee’s salary.
- The average cost to fill a C-level position can be more than 200% of that position’s salary.
Of course, salaries are different in every organization, but wouldn’t you prefer to have that money going toward a more beneficial business function like interacting with your clientele?
The higher up you are in your organization, the more challenging it can be to see flaws in its culture. Although things may seem fine, only 32% of employees strongly agree that they can be their authentic selves in the workplace.
When humans feel as though they can’t be themselves in a particular setting, they tend to leave. Approximately 70% of candidates prefer to work for a company with a demonstrated commitment to diversity and inclusion—your employees have a front-row seat to judge these efforts.
Changing your company’s culture is not easy, nor is it always efficient…but it will have a direct impact on your turnover if you can make the appropriate adjustments.
The burnout bug
The World Health Organization (WHO) included burnout in its 11th Revision of the International Classification of Diseases (ICD-11) as an occupational phenomenon. While this issue runs rampant, it is very difficult to see. Despite this, it is vital to be familiar with it as it is up to you to assure your employees have a safe working environment.
Burnout is important to consider because it’s often the reason why employees leave a company. If someone feels overworked and underpaid, they’re bound to quit sooner or later. While you may be thinking, “How can I track data on this if I don’t know?” Well, that’s where exit interviews come in.
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Exit interviews: Your main source of turnover data
If you aren’t conducting exit interviews, what are you waiting for? If you want the most direct, honest information on why people are leaving, this is your best option.
It would also be in your best interest to not rely on the mass data you see online. You want concise, poignant information about your business and its systemic problems, not other people’s businesses.
There’s a chance that exiting employees aren’t entirely comfortable sharing all of the reasons they are leaving, but, because turnover is inevitable, you’ll eventually build a sample size that is suitable to pull important data from. If you still need help with turnover and recruiting, contact a professional employer organization (PEO) like VensureHR to discuss what HR solutions they recommend specifically for your business.