3 Secrets to Reducing Your Employee Churn Rate

Reduce your employee churn rate with these tips.

Replacing an employee can cost as much as 20% of their yearly salary. The higher up their position is, the more expensive it is. That’s because you need to factor in paying recruitment agencies, covering for the vacant position, and the time lost to those responsible for hiring.

A low employee churn rate is key to maximizing your potential and growth.

When you have a lower employee turnover, you can focus your resources on researching and launching new products and services, improving the working environment, and investing in employees’ development instead.

It also boosts your employer brand, which is crucial if you want to win the war for talent. Brands with a strong employer brand lower their cost to hire by 43%.

But how do you reduce your churn rate?

It starts by looking at the employee journey. How can you improve it? What steps can you make to create a more inviting atmosphere for employees whether they’ve been there five weeks or five years?

Let’s take a look at three important parts of an employee’s journey, and how small changes to them can reduce your employee turnover rate.

Plan your onboarding process for early success

Happy employees are loyal employees. To create this sense of loyalty, you need to make them feel valued. This starts from their very first day.

However, not every company manages this – 42% of employees have no computer or device to work from on their first day. Worse, some employees don’t even have a desk on their first day! While this is only part of the onboarding process, it’s an important part of setting your employee up for success, especially when 20% of employees leave within the first 45 days.

Contrast that to the 69% that will still be with a company three years later if they go through a positive onboarding process, and you can see why a good onboarding process is so important.

A negative experience reflects badly on you: it makes you look disorganized, and like you don’t value your employees.

It’s therefore imperative that you you spend time planning the onboarding process for your new employee before they start. Don’t leave it all until the last minute, as you may find that there are some issues – like purchasing new equipment – that will take days, maybe even weeks, to sort.

Also ensure that their company account and logins for any relevant software are set up before they begin. That way, all they need to do on their first day is click to activate their new account. They can then start using the software straight away.

Once they’re all set up, don’t just sit them down and present them with a list of objectives. Include them in the decision-making process. Have some projects ready for them to work on, but listen to them and ask them what they’d most like to work on, too. That way, they immediately feel like their thoughts and opinions are valued.

The objective of an onboarding process is to help the employee get to know the company, its products, and mostly importantly, the culture and their colleagues.

Everyone in the team should be involved in making the new team member feel welcome. This could include scheduling introduction meetings with the new starter, or assigning them a buddy to give them a tour and answer any day-to-day questions.

Group inductions can be intimidating for new starters, so focus on one-to-one sessions instead. This creates more space for the new hire to ask questions.

Efficient scheduling solutions make organizing these one-to-one meetings a breeze, and avoids the risk of two member scheduling a meeting at the same time. Scheduling meetings before someone starts also reduces any awkwardness over the new hire having to approach people to schedule meetings – it’s all there ready for them when they first start.

Invest in training and mentorship

Training and mentorship are crucial parts of an employee’s progress. They can boost their skills and help them to work out which career path is for them.

For mentors and those conducting training, it reinforces their skills. They can even learn from those that they teach. It’s also great networking for everyone – you never know where your next great opportunity will come from.

Despite this, only 44% of companies offer a mentorship scheme.

Mentorship benefits employees at every stage of their journey. Don’t let the fact that someone is already a manager convince you that they already know everything they need to know. No matter how long someone has been managing for, there’s always a new strategy or technique they can try to motivate their team.

Training can be both internal and external, so be open-minded about the best place(s) for employees to build their skills. The best person to train your marketing team may not be someone who’s been there for years – it may be someone who can offer a fresh perspective on your strategy and help you to keep it relevant as algorithms continue to change.

Conduct exit interviews

Exit interviews are an often overlooked but incredibly valuable part of an employee’s journey. They give you the opportunity to examine why employees leave, and identify areas where your company may be failing them. Without this information, you can’t make positive changes to improve the working environment.

Conducting exit interviews using a framework makes it easier for you to quantify results. You can then pick up on reoccurring problems or praise. The more often something is raised, the more important it is to address.

Some questions you could ask include:

  • How employees feel about the working environment
  • What their commute is like
  • What their relationship is like with their manager
  • How well they get on/work with their team

Using this information, you can start discussions with remaining team members about any common threads. You can then make informed decisions about how to better suit employees’ needs and (hopefully) prevent more from leaving for the same or similar reasons.

You can also home in on positive comments that are made, finding ways to further enhance these experiences. For instance, if employees benefit from flexible working hours, you could look into allowing them to work from home if they can’t already. If they like how the team encourages self-development, you could look into courses or events for the team to further develop their skills.

Employees are your business’s biggest – and best – advocates. If they share negative experiences with their social circle it reflects badly on you and may even cause you to lose customers. Leaving them with a positive overall feeling is therefore crucial. Exit interviews are just one part of this. Others include how the rest of the team reacts to their departure, handover periods, and anything else that happens on their final day. While you can’t control all of this, exit interviews help to cement your positive employer brand by showing employees that you care about their wellbeing from the start of their journey with you right through to the end.

When an employee speaks highly of you when they leave, they’re more likely to return for a future position, or even to recommend roles to their friends and family. Since referrals are one of the best ways to hire the right person for the job, this can make a huge difference to your hiring process, and further improving your employer brand.

Conclusion

It’s your responsibility to offer employees opportunities to learn, grow, and be more efficient in their role. Employees will then be more loyal and motivated, and turnover will decrease.

It’s also important to remember that there are many other elements that can impact employee satisfaction. Internal promotions, 360 feedback, and open communications are also key to reducing employee turnover. And don’t forget to make the technology that they need available to them!

These investments and changes to company culture make a big difference. After all, reducing your employee churn rate can be the difference between business growth and stagnation.

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Source: 3 Secrets to Reducing Your Employee Churn Rate | The Cronofy Blog

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The Rise of the Multi-Interface HR Application

The Rise of the Multi-Interface HR Application

The move to allowing users to interact where they already are, be that chat, calendars or email is especially relevant to HR applications.

Like project management (Trello, Basecamp) and customer service tools (Intercom, Zendesk), HR tech has been part of the next wave of a hyper focus on user experience to create the next generation of applications.

HR applications have two distinct constituents: primary users like hiring and personnel teams, and the rest of the company’s employees who are generally irregular users. Perhaps when they’re booking leave or participating in an interview for a new team member.

This creates both friction and a training challenge for the second group to get the most out of applications. No matter how intuitive a UI is, a user still must switch mental context and understand the language and mechanics.

Mobile apps were the new revolution in enabling users to interact with applications and services. However, creating another dedicated interface for applications didn’t really solve this context switching problem. User’s just don’t download or use apps for services they user sporadically.

This is why we’re starting to see the next generation of UX innovation happen outside of dedicated applications.

Slack is the most high profile crucible for this kind of innovation in the enterprise world. Slack is an app that employees will install on the phone so they can use it wherever they are. They’re already in Slack both on desktop and mobile so there is minimal context switching. And it supports the kinds of ‘chat and click’ interactions that allow relatively complex features to be access with a guided user experience.

Applications like Lever are expanding the collaboration hiring functionality into Slack. Team members who are already in Slack can easily interact, comment and support the hiring process without switching to another application. GoCo provide absence reporting and management from within Slack.

Calendars are now revealing themselves as the next interface to enterprise applications, especially in HR. So much of HR workflow is schedule based that users can’t avoid taking decisions without referring to their own or their colleagues’ schedules. Use of calendar APIs rather than read-only ICS feeds turn calendars into real-time integration points rather than delayed reporting tools.

Anton Roe, CTO of MHR who have been delivering HR software for over 20 years, said: “We’re seeing a dramatic shift in focus away from HR departments and directly on the employees themselves. The consumerisation of enterprise software and the efficiencies gained from empowering employees to perform personal HR operations requires a new approach to building software.”

With recruitment platforms connected to employees calendars, prospective members of interview panels no longer have to maintain availability in an application. They just keep their calendar up to date and this is automatically reflected to the hiring manager or the candidate when an interview time is selected.

Booking holiday becomes as simple as an employee creating an event in their calendar. That’s where they’re making the decision about when they want to take holiday. Creating the required holiday can trigger the authorization flows so the manager can approve wherever they are, be that email or via a Slack interaction.

Performance management meetings can be automatically tracked, changes responded to and follow ups triggered. All by the HR application automatically monitoring users calendars, not relying on users to keep the application updated.

Roe goes on to say “HR systems today need to have the employee front and centre and must require minimal training. Leveraging chat systems and native interfaces like calendars provide people with natural user experiences that just work wherever they are.”

Chat and calendars represent the next vanguard of application interactions. They are native to computing be that mobile, desktop, car, smart home or otherwise and are already core to users’ workflows. The most successful applications of the next few years will leverage their pervasiveness and commonality to take computing where people are.

About the Author:

Adam Bird, CEO and Founder at Cronofy

Adam Bird is Founder and CEO of Cronofy, the unified calendar API. He’s a highly technical and experienced technology entrepreneur with a passion for continuous improvement that pervades every aspect of his life.

Adam can be shortly described as a technical founder and problem solver with track record of success. Expert post rationaliser.

Entrepreneur and developer with previous success as co-founder of Esendex.

Husband, father & wannabe rock guitarist as time allows. A lover of cycling and craft beer but he never really got on with having a beard for that hipster hat-trick.

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