Reduce the Cost of Turnover
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The Challenge: Reduce the Cost of Turnover
Did You Know?
- Despite near record unemployment, 42% of people resigned from their jobs in 2010.
- 50% of employees voluntarily quit their jobs for better pay, more responsibility and planned relocation.
- The biggest cause of turnover is not poor employee performance, it's poor communication and frustration with management.
- According to SHRM, the cost of replacing an $8/hour employee is $3,500. For a $50,000 manager, that cost is $15,000!
So how can you avoid the high cost of turnover?
The 60-Second Solution: Exit Interviews
If you really want to avoid unplanned turnover, just ask! A well-designed exit interview will provide all the data you need to identify the causes of job dissatisfaction, so you can make the changes necessary to improve retention.
Here's how you can get started:
- Develop an actual exit interview process, which will consist of a personal meeting with employees before the final day, in combination with a written survey.
- Convey to employees that they are free to speak openly and honestly without fear of reprisal or negative consequences.
- Ask exit interview questions that are relevant to the individual's employment status, duties and position for the best feedback. Be sure to probe about issues with management methods, compensation, communication, and the work environment.
- Compile data from multiple exit interviews to look for common issues that need to be addressed.
- Try to get to the root of any issues that employees bring up by following up with managers and deciding if there is an alternative solution to avoid losing a valuable employee.
- Maintain any data and feedback provided by employees in a confidential employee folder and in a secure informational spreadsheet to identify any trends.
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