What is the best way to reduce attrition in the workplace?
It is clear that attrition is a big problem in today’s businesses and workplaces. In a recent report by Expert Beacon, it was estimated that 22% of employees leave their place of employment within only 45 days of obtaining their jobs.
What is causing this statistic? Do people feel overwhelmed so soon in their new careers or positions that they feel they have no choice but to leave without trying to work it out?
Perhaps they do try to seek help, but none is available.
What are the factors in this harrowing statistic and how can you reduce attrition in your workplace?
Sometimes the beginning is the most important.
Reducing the amount of staff you lose either early or late in the game is imperative in keeping your overall business costs down and increasing your return on investment (ROI).
The costs involved in hiring, interviewing, recruiting, and on-boarding alone can run into the thousands.
How Business Owners Can Reduce the Attrition Rate
Aristotle once said, “We are in far more control of our lives than be imagine.” And we believe he was right. Events happen, but it is what we choose to do about them that inevitably controls our futures. This applies not only to individuals but also to business owners and CEO’s.
Here are some tips to reduce your attrition rate and improve your employee relations that you can apply immediately:
Use incentives and rewards for excellent performance.
Businesses that are run on a pay-per-performance basis or ones that employ a reward plan for highest performing employees often reap bigger rewards regarding their bottom line, employee morale, and low attrition rates. You can make any guess regarding why it works, but we know that it is effective.
When you think about it, this is just basic human psychology. Behavioral psychology theory says that we tend to cling to rewards and avoid punishments or negative consequences. When you pull an employee aside when they have gone out of their way to do something great for your company, or improved their sales rate, you are rewarding them for behavior that you wish to continue.
If this reward comes with some tangible incentive such as money or time off, you may enforce the behavior even more in the mind of the employee.
How you carry out your incentive plan and what you choose to use for your incentives will be determined by what works best for your employees and the people you want to motivate. For some people, bragging about their performance is enough. For others, a day off might be a better reward. Implementing a reward plan successfully is determined by how well you know your employees and what works to motivate them.
Talk to your employees.
When you leave the lines of communication open, you will encourage your team to talk to you and bring any problems to you before they get so frustrated that they quit. Remember you are trying to discourage attrition and your goal should be to get people to stay in the company as long as possible. Send out memos via email stating that you are available to them if they have any difficulties adjusting to their position. This should help cut down on some of the reasons people leave.
If motivation and productivity are issues within your workplace, we also have these productivity tips for employers to implement as well.
Have more fun!
Google, a company that believes in the philosophy, “Work hard; play hard!” does well in this category. As a result, they enjoy a high level of company morale. In fact, they have gamified their entire workplace. They offer game time, rest time, free food, exercise programs, and even childcare. Not all businesses can do this but the more you can give your employees, the more they will give back.
Revisit your Onboarding Process
If these ideas don’t work for you, perhaps the problem is more at the “front end.” The assessment, training, and recruiting process is one of the most important aspects of your business. If this part of the process is done correctly, you will find your attrition rate is much lower.
How to Improve Your Onboarding Process
What are some ways you can improve your onboarding process?
- Improve your online assessments.– If you can find a way to make your online assessments better, you will recruit better workers. This is because assessments need to specify the key components that you find important within your business. Some pre-formatted assessments that you find online are not good enough to select the right candidates for your job openings. You need to consider customized assessments instead. These allow you to specify exactly what types of questions and assessment you need to find the best people.
- Create an automated response system.– By asking people what they like or don’t like about your site, your business, and your onboarding process, you can highlight what is working and uncover what is not working so well. This will yield valuable information to you regarding what potential employees are attracted to for future postings.
- Create online surveys to assess employee satisfaction ratings.– You can also use surveys to find out what your current employees think of their jobs. You can qualify the questions to ask if they are satisfied with their jobs, as well as what problems they encounter, and what they would like to see changed.
- Implement incentives for successful onboarding procedures.– Just like you need to implement some reward or incentive plan for a job well-done, you may even want to do this for your new employees, as a reward for successful onboarding. You could even implement an incentive plan into your training program and provide rewards for the employees with the highest level of competence following their training. Since more people leave their jobs within the first 45 days of employment, rewarding employees on the front end may greatly reduce your amount of desserts and lower your attrition rate. Additionally, well-trained employees tend to feel good about themselves and their abilities and are less likely to become discouraged.
- Integrate competitive type assessments to encourage friendly competition.– This is a great way to entice your sales team to improving their performance. With the right assessments in place, you can create a sense of competitiveness that employees will enjoy as they try to outdo each other.
These are all good tips, though you should remember that your sales team should feel a sense of teamwork and not feel that they are going it alone. Friendly competition is great, but teamwork is also.
You can instill any of all of these qualities with the right onboarding and employee assessments.
Testofy.com specializes in creating custom assessments that can be custom-created based on your specific preferences for your business.
We focus on knowing your business, creating valid and reliable online assessments, and putting automated systems in place that work for the long haul.
If you focus on what is important, you can greatly increase your ROI, lower your customer attrition rate, and improve your bottom line.
Look over our various types of assessments such as:
- Pre-Hire Assessments
- Induction Assessments
- Training Assessments
- Appraisal Assessments
- Surveys and Opinions
Look over this list of assessments, then contact us to learn more about how we can implement any or all of these for you within your business. We have been creating quality online assessments for years that are customized to meet the specific goals of your business.
Lower your attrition rate. Improve your staff morale.
Improve your bottom line. Online automated assessment tools could be the key you need to move your business to the next level.
Because if you start out right, the rest is easy.