Employee turnover rate is one of the HR metrics that are most crucial to track. It’s not hard to see why; losing an employee can have a drastic effect on operations, sales, and even team morale.
It’s also a significant loss of company investment, given the amount of resources that go into recruitment fairs, hiring cycles, and training sessions for new hires. In fact, the Society of Human Resource Management has valued the average cost-per-hire at a whopping $4,425!
Many aren’t doing enough to curb this cost. While you can’t avoid employee turnover entirely, you can take steps to reduce this. Here are 4 things that HR-driven companies do well:
Hiring The Right People
Costly mistakes can be avoided by hiring the right people for your company from the start. The Business Development Bank of Canada has found that establishing good selection criteria and processes can significantly reduce turnover. Their 7-Step Hiring Process begins with reviewing your company culture and creating detailed job descriptions around it. Identifying the values and behavior that typically thrive in your company’s environment can help streamline your screening process and ensure that every hire has the best chance of thriving. Considering this earlier on will save you the headache of replacing new hires that leave within the first few months of working in your company.
Write your job descriptions around the particulars you’ve identified. BDC suggests that a well-written job description includes:
- Work outcomes and responsibilities — What is the employee expected to accomplish? Work processes — How is the work expected to be done? Who are the other people involved?
- The equipment, software, hardware or tools to be used.
- A genuine and honest description of the work environment.
- Experience requirements—Skills, expertise, years in the industry, etc.
Keeping An Eye On Employee Morale
HubSpot is a marketing software company based in Cambridge, USA. They’ve generated $375M in annual revenue on the back of a strong company culture. They are driven by a desire to help businesses grow better, with an emphasis on hiring for culture-fit. They’ve consistently been featured on the Glassdoor list of Best Places To Work.
Hubspot offers benefits such as unlimited vacation, work from anywhere, and four-week sabbaticals to encourage a healthy work-life balance. They also invest generously in every employee’s individual market value and mastery. They empower their talent by giving them access to seminars with industry leaders, unlimited free books, and more.
Develop A Values-Based Culture
Salesforce.com, another software company from the US, offers a rather unusual onboarding experience to employees.
Instead of spending their first day at the office, new recruits are tasked to go out and do community work. They are free to choose any NGO, hospital or public school to volunteer for. Fortune reports that the idea here is to embed the values of service and philanthropy that the company shares.
The company takes great steps to develop a culture based on a collectively established set of values. “I want a company where people are excited to come to work every day, where they feel good when they get here, where it doesn’t take from them, but it’s giving to them, it’s giving to others,” Salesforce CEO Marc Benioff told the New York Times.
Salesforce also takes its philanthropic programs seriously. Through their 1-1-1- model, they donate 1% of their time, 1% of their equity, and 1% of their product back to the communities they choose to serve.
Offer A Comprehensive Benefits Package
Willis Towers Watson has found that 61% of employers in Asia see their benefits package as a key driver of attraction and retention. However, the same study revealed that only 45% of employees feel that their benefits package actually meets their needs. In reality, the usual package of HMO, vacation leaves, and government-mandated benefits just doesn’t cut it anymore.
Compensation is the #1 motivator of Filipino employees. The quality of your benefits package can easily make or break the decision of a potential hire. To get ahead, leverage technology to address your people’s everyday problems. Curating a unique set of benefits around employees’ immediate concerns provides more incentive for them to stick around.
Looking for a new financial benefit? Advance has got you covered.
Even the most careful budgeter can be caught off-guard by an unforeseen expense, be it higher-than-usual tuition or a medical emergency. Supporting your employees’ financial well-being fulfills one of their most pressing needs, which can result in increased engagement at work.
Why Advance?
Advance is a tech company that takes pride in ensuring employees are never unprepared for what life has in store. We provide an online platform that lets employees access their salary anytime as a revolving line of credit, at no cost or liability to the employer. With features like 24/7 access to funds, instant disbursement, and short term repayment periods, Advance is a safe and reliable solution to employees’ financial woes.
