In today’s context, HR managers have their work cut out for them when it comes to employee retention. Not only does a high rate of attrition indicate serious organizational issues, but it also represents a major cost for businesses who then need to initiate the recruitment process all over again.
Depending on your business, your industry, and the employee you’re trying to replace, hiring costs can look something like this:
Having realized the colossal waste of resources dismissals accrue, and the resulting drop in productivity within the workplace, companies are now more focused on preventing the need for termination altogether.
Similar to our ethos, here at Wired2Perform, corporate leaders are beginning to realize that, for the most part, there’s no such thing as a bad employee – only one who isn’t in the right job or environment.
In our post, we dive into some of the best ways to reduce attrition and improve employee retention in your organization. Continue reading for a look at some of the best strategies industry leaders use to reduce their attrition rates.
One of the many mistakes companies make in the hiring process is screening candidates for their demonstratable education, skills and knowledge; those qualities that make them seem like a good fit for the job at hand.
Yet, employers are beginning to realize that that’s not all it takes to make a good hire. The right candidates will also need to have the relevant soft skills to make sure that the gray areas of each job – good communication, empathy, people skills – are performed to perfection as well.
This is a trend still in its formative stages, although it won’t take long for businesses around the world to catch up with this hiring practice. This, however, begs another question: How can employers screen their employees for these types of skills?
Given that these aren’t likely to be jotted down on a CV, psychometric tests – those that dive into the depth of each recruit’s true nature and personality – will prove useful in this endeavor.
One of the most common causes for high levels of employee attrition has very much to do with personality clashes in the workplace.
Given that many businesses don’t consider factors like employee compatibility – at least not seriously enough – when it comes to building teams, team members often find themselves in the midst of bitter conflicts, which leads to either dismissal or a voluntary walk-out.
In order to reduce attrition and improve employee retention, HR managers and team leaders need to ensure that team members don’t just have the right skills, but also mix the right set of personalities together.
It is, for instance, unwise to pair someone with a domineering personality only with team members who are quiet and submissive. Here, someone who can counterbalance a strong personality needs to be added to ensure that an equilibrium of power is maintained.
Employee engagement has much to do with improving employee retention. As such, giving your employees the sense that they’re, in fact, gaining and not losing in the workplace is a key strategy to reduce attrition in the long run.
Beyond just providing employees and teams with training that’s impersonal or barely relevant, use psychometric testing to understand what makes each team tick and give them learning sessions that are catered to their specific needs.
Education opportunities will also show your workforce that you value their effort and contribution and would like to help them grow beyond what they see themselves as.
At a time where a high rate of turnover is very telling in terms of a company’s success and overall culture, improving employee retention and reducing attrition is a key priority for businesses around the world.
By incorporating the right, science-backed psychometric test to your organization, you can now achieve all these objectives and more, including increasing your revenue by 23%, employee productivity by 40% and team productivity by 70%.