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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How to Keep Your Best Tech Employees

In today’s business world, where main focus revolves around technology and its advancements, having employees with exceptional knowledge about information technologies is truly a valuable asset. Every company that manages to get their hands on such tech talent will have an advantage in the market.

However, these employees require a work environment and conditions that suit them the best, in order to remain engaged for the company they work for. That’s why you need to find the best way to make your top tech employees happy and ensure the means of their retention. Here are a few way to keep your best tech employees.

Challenge them

A lot of tasks need to be completed in order for a business to succeed, but if your best tech employees get stuck doing mundane tasks, they won’t be too happy about it. That’s’ why you need to challenge them and assign them to projects that will truly put their expertise to the test. Your best teach employees will appreciate the fact that you lean on their skills to solve complex issues.

Not only will they feel a sense of accomplishment once they finish the project, but they’ll also have means to put their minds to work and find solutions to the most difficult problems. In addition, these tasks will help your tech employees hone their skills and maybe even learn new ones along the way.

Reward them accordingly

If you want to keep your best tech employees, you need to be proactive and reward them for their hard work before they come to you seeking recognition. Even though money is a good motivator, it’s not always a top priority for some employees. Rewarding employees doesn’t always have to be about raising their paycheck. You can also choose more personal rewards that will showcase your appreciation.

Sometimes those rewards can be small tokens, such as T-shirts, such as custom pens, and coffee mugs which will remind your employees that you haven’t forgotten about them. On the other hand, you can also choose something more valuable, such as paid weekends for two at a resort or a spa, extended vacation days and other rewards for completing difficult projects or reaching an important business goal.

Praise their value

If you have tech employees with an exceptional talent, make sure you let them know how valuable they are to your company. That way, your tech employees will know that all the hard work they’ve been doing isn’t going unnoticed and that you recognize their contribution to the overall business success.

Also, praise your tech employees in front of other employees, so that others may become inspired to follow in their colleague’s footsteps. However, if some of your employees don’t like public praise, then try to find a more subtle approach to let them know just how important they are to your organization.

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Their work-life balance is important

Relying on your best tech employees for difficult tasks means you’re giving them a lot of responsibility. However, you can’t expect your employees to sacrifice their personal lives for the sake of work. Many good tech employees will be engaged towards their job responsibilities, but they also need time and space to have a normal everyday life. In order to let your tech employees develop a good work-life balance, allow them to have the flexibility they need.

For instance, let them choose working hours if it’s going to help them out, as long as they complete the tasks for the day. Also, let them work from home for a few days if they need it. Furthermore, when they take a day off, let them disengage from work completely. That means you shouldn’t disturb employees on their day off whenever an issue pops up.

Involve them in decision making

Your managers might know a lot about doing business and delegating tasks among employees, but your top tech employees may have important insight into matters as well. Don’t hesitate to involve your best talent in decision making. After all, they may see something your upper management missed.

In addition, asking top employees for their feedback and opinions is a good way to show appreciation and also show them that their opinions are in fact important and valuable to you. Furthermore, your top tech employees have knowledge and expertise that may give you an advantage in the market. Their unique viewpoint may give you a new angle to further develop and grow your business.

Having highly talented tech workers is truly an asset to any organization. Just make sure your top tech employees can do their job unhindered and that they know their hard work is appreciated. That way, you’ll be able to retain them with ease.

Signs it is Time to Take Your Organization Virtual

Signs It Is Time to Take Your Organization Virtual

Signs to go virtual
How to ask your boss that you want to do your work from home?

Is It Time to Take Your Organization Virtual? Here Are the Signs It Is

The on demand skills based economy is here. With today’s top talent adapting to the new climate of the workforce, organizations now must find new ways to engage and retain their staff while bringing in the best talent available as needed to survive and thrive in complex economic times. The workforce has taken their careers and income earning opportunities into their own hands and crave the flexibility that virtual organizations provide. Whether you need to incorporate contract or freelance work into your operations or want to give flexible working arrangement incentives to your existing permanent team, there are many benefits to taking your business virtual.

Below are a few signs it may be time to take your organization virtual.

Your Industry Has Already Shifted

Does the competition incorporate contract and temp work for their teams to execute projects and deliverables? Do they have satellite offices with less overhead dispersed throughout a greater geographic region than you? You may be paying for more office space than is required or missing opportunities for growth by not shifting alongside your competitors that are gaining more market share through virtual teams and contracted project management.

Accessing the Best Ability When You Need It, Cast a Wider Net for Talent

Human capital is and always will be critical for organizations to grow. The top talent of today’s workforce is already embracing the shift of the gig economy for their careers. Contract and freelance work for projects may be one of the only options for reaching some of the most talented professionals that you do not have access to in traditional employment engagements. Leverage the strengths, talents and skills of top performers available to compliment your permanent staff. Changing up your business model to attract and leverage the best talent available for your organization is critical and inevitably necessary. There are specific projects or initiatives that do not require full time engagement, try contracting out this work with the support of your existing team.

There is Flexibility to Be Gained by Both Sides with Less Commitment

A short term project to gauge ongoing working compatibilities allows each side to have less binding ties than an official employment contract. By allowing both sides to test the waters, there is flexibility to expand working relationships or simply part ways conveniently for both parties.

You Already Leverage Collaboration Tools in the Cloud

The cloud is here to stay and the same tools that are used for internal personnel communications and document management, have made their way into the workforce. The same affordable tools already invested in, can be leveraged by personnel logging on from anywhere. Programs such as Office 365, Dropbox, Slack and Google Drive allow teams to collaborate from dispersed locations in different time zones to accomplish tasks and achieve goals remotely. Implementing electronic systems and procedures will be necessary but also provide the necessary guidance and structure to improve operational efficiencies and help designate roles and responsibilities between members of the virtual team.

You Want to Incorporate Work from Home Policies as an Incentive

More and more companies are realizing the benefits of an engaged workforce by offering the flexibility to incorporate part time working from home policies. As with any incentive, it has to be carefully managed so teamwork can be developed through defined deliverables with accountabilities in place. Conference calls, in person meetings, team brainstorming sessions can help teammates engage virtually while allowing them designated time to manage their personal and professional lives more flexibly.

You Need to Scale with Speed Affordably

Small dispersed teams optimally performing are considered a threat in today’s workforce. With the right mix of trust, relationships and business process, virtual teams can deliver unprecedented results with the right controls and check and balances in place. Having a plan in place with defined goals and objectives so the project delivery can be optimized by the virtual team’s performance will be a key to the team’s success.

Your Management Team has the Soft Skills to Manage Virtually

Teamwork and accountability can be fostered through well-defined objectives and project management milestones. Team engagement through regular meetings that encourage brainstorming, strategic discussions, presenting and reporting will help make the virtual team successful. Periodical in person face-to-face meetings and engaging collaboration tools that allow you to share mini bios and personal pictures can help develop comrade from teams that do not regularly work together. Leaders of virtual teams need to have the right balance of soft skills and technical aptitudes to adapt their management style accordingly.

Is it time to take your organization virtual?

About the Author

Eric Apps, Organimi

Eric Apps is a seasoned technology entrepreneur, lawyer and early pioneer of today’s growing modern workforce methodologies. Eric has owned, operated and held board or senior management positions in several public and private technology companies. Today he is partnered in Aluvion and Organimi, Canadian law and technology firms, where he is an early adopter and advocate of building virtual teams and services to grow his companies. By leveraging the power of new technologies to streamline workflows, while utilizing a virtual network of highly skilled, and highly responsive professionals to develop his companies, Eric is a thought leader and advocate for the growing freelance/gig based economy.

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For more information, visit http://organimi.com

To book an interview or to request information, please contact Nicole Ragno at nicole.ragno@organimi.com

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Soft Skills Analytics: Five Measures of Impact

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There are several ways that organisations can and should measure the impact of hiring for soft skills. After all, you want to know if it’s working, where it’s working and what the benefits are to the organisation.

Improved speed of hire, candidate selection, quality of hire and retention are all benefits that can be achieved by hiring for soft skills and all of these benefits are measurable. Indeed, at softfactors, a Swiss HR Tech company, we already measure some of these benefits and will soon be measuring all of them.

Faster speed of hire

Let’s start with speed of hire. This is as it sounds: we measure how long it takes to get a new hire on board once the recruitment process has started, from start to finish. It’s very easy to measure and the results should be significant. Many of the companies that use our screening tools have reported halving the recruitment time from three months down to one and a half months. In one instance, we hired a communications specialist for a company in just four weeks, from posting the job advert to issuing the job offer to the candidate. Being able to speed up the time to hire is particularly important for business critical, strategic and senior roles.

Identify better candidates

Improved candidate selection is another major benefit and what this refers to is the ability to identify strong candidates and screen out unsuitable candidates early on. Our soft skills analytics give hirers a really good, detailed understanding of the aptitudes, personality traits and motivational drivers of candidates. This enables hirers to weed out those who might otherwise have made it through to interview and only select a handful of really strong candidates.

By only inviting promising candidates to interview, hirers enjoy significant time savings. Consider how long it takes to set up and prepare for interviews, conduct the interviews, assess candidates afterwards and then feed back the information. If a hirer is only doing that three times, instead of five or ten or 15 times, that’s a substantial efficiency saving in terms of time and resources.

A better candidate experience

It also makes for a better candidate experience. Interviews require candidates to invest time and energy as well, so better to only select those for interview who stand a good chance of securing the position.

We can also provide hirers with data on where the good candidates are coming from – is it LinkedIn? Facebook? Monster? Organisations can use this information to target their recruitment efforts more effectively.

Improved quality of hire

Proving an improved quality of hire is perhaps the hardest benefit to measure. However, conversations with line managers and anecdotal evidence can be useful here, plus other measurables, such as time to competency, how well a candidate performs in a role and how long they stay.

Increased employee retention

Retention is something that we plan to measure soon. If there’s a good candidate-job-manager-organisation fit, then we would expect candidates to stay longer within a job and to progress up through the organisation.

Screening that leads to better retention rates is certainly something that a lot, if not all, companies would be interested in. As one senior investment banker quoted in the Financial Times article said, soft skills tests that can accurately predict the likelihood of candidate staying and succeeding in a role “would be terrific”.

This last benefit takes a bit longer to measure, because the tracking takes place over a longer period of time. But it can all be done and can show hirers the several clear benefits of testing for soft skills.

 

So, in conclusion, there are several ways that organisations can and should measure the impact of hiring for soft skills. In fact, it would be very unwise not to do so with the current available technologies.


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