Do You Have a Retention Problem? Here's How to Spot Issues Before It's Too Late

Posted in Human Resources

Do You Have a Retention Problem

 

A poor performer quit two months ago. And frankly you were relieved.

 

A long-term employee resigned a few weeks ago. And while you were sorry to see them go, you weren't too concerned.

 

But last Friday, a promising new hire gave their two weeks' notice after less than six months on the job. And you feel like you've been punched in the gut.

 

Are these just isolated incidents – or do you have a real retention problem? Scrutinize your organization for these three prime turnover culprits before people start quitting in droves:

 

Insufficient or outdated compensation.


Pay is one of the chief drivers of voluntary turnover, and data from multiple sources indicate that wages and salaries will jump significantly in 2019. Here are a few key statistics from a recent Society for Human Resource Management article:

 

  • Employers anticipate salaries for 2019 will rise by 3.4 percent over 2018 pay, which is higher than earlier estimates.
  • Workers are now anticipating larger pay increases than employers had planned for 2019.

In a tight talent market, revisiting your compensation approach can help ensure your offerings are competitive. Start by asking these critical questions:

 

  • Are you paying employees enough – especially for jobs that are notoriously high-turnover or difficult-to-fill?
  • Are you paying employees fairly? Consider conducting a pay equity audit to reveal and eliminate statistically significant pay disparities.
  • Could you offer new or different incentive opportunities – based on more frequent payout or updated performance metrics?

Inadequate new hire support.


New employees are at their most vulnerable during their first three months with your company. Make sure you're doing everything possible to fuel their early – and continued – success:

 

  • Create and implement a structured, formal onboarding program. Provide the attention, resources and support new hires need to: acclimate to the corporate culture; bond with fellow employees; understand their role and performance expectations; and close skills gaps.
  • Focus on communication. Every aspect of communication, from the job offer through their first performance review, influences your new hires' perception of your organization. Offer frequent feedback (both formal and informal) to keep new employees informed and on track, and provide enough detail during training, orientations and introductions. Encourage new hires to communicate with you, so you can spot and address small issues before they escalate into larger problems which may lead to turnover.

Lack of career growth.


Employees who are continually advancing along a well-defined career path are more likely to stay working for your organization. Whether employees have been with you for one month or ten years, create a place where everyone can flourish, learn and grow:

 

  • Provide regular opportunities for employees to build their skills and knowledge within your company – including cross training, job sharing and interdepartmental projects.
  • Accelerate career growth for promising employees by pairing them with mentors.
  • Offer employees "stretch" projects to challenge their thinking and develop their abilities.
  • Foster a culture in which acceptable risk-taking and failure are tolerated.

Final Thoughts


High turnover is extremely expensive in today's employment market, where skills gaps and talent shortages have reached critical levels. Want to nip it in the bud? Partner with PrideStaff to:

 

  • Provide the right staffing support. Our flexible staffing services help prevent burnout and free your core team to work on important, challenging projects that fuel job satisfaction and career growth.
  • Hire for retention. By eliminating chance and inconsistency, PrideStaff's On Target fulfillment process delivers the best candidates – ones who fit, perform, succeed and stay.

Think you might have a retention problem? We're here to help. Contact your local PrideStaff office today to get started.

 

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