Having consistently high levels of employee turnover can be extremely detrimental for businesses. For businesses that historically have to manage with staff churn, such as fast food and retail, it means big investment in continually hiring and training. 

And for organisations relying on skilled colleagues who are experts in their respective sectors, periods of high voluntary departures from the company can result in lost knowledge, client/customer relationships and cost thousands to boot.
 
In fact, SHRM estimates it costs between six to nine month’s salary on average to replace a salaried employee. So, for a manager making £40,000 a year, that’s a £20,000 to £30,000 cost to the organisation when that manager leaves. 

At the CEO level, replacing lost leaders can cost 213% salary. 

Yet it’s not just the cost that can cause challenges for companies. Losing top performers or great team players who contribute on a daily basis to an organisation can have wide-ranging impacts, from negatively affecting their immediate peers, lost productivity as new recruits need to get up to speed and even wider disengagement should employee turnover remain high for too long. 

Much as at a football club, if the star players start jumping ship, the rest of the squad start questioning the direction of the organisation. 

So, with managing employee turnover of upmost importance, what can businesses do to stem the flow? Here are four areas to consider:

Ensure career progression opportunities

One area that transcends workforce generations is the opportunities and potential pathways for career progression opportunities within the same organisation. 

In fact, research from Penna found that almost two in three employees say that lack of career development with their current employer would be enough for new job hunts to get underway. 

This is compounded by the fact that only 36% of managers admit to not knowing the career goals of their teams. 

Offer training initiatives

For millennials, in particular, feeling that their personal knowledge is growing and being able to upskill within a job is important. It taps into their desire for career development and also provides a steady flow of motivation as well as increased confidence in abilities. 

How that training is offered to employees can differ, what’s important is those opportunities are there. For example, in-work training time could be offered, or each employee could be offered an annual budget dedicated to online courses or off-site seminars.

Ensure recognition takes place

Again focusing on millennials, predominantly as they’re set to make up 75% of the workforce by 2025, recognition and ensuring employees feel appreciated for the work they’re doing is critical. 

Whilst 66% of employees across generations would consider quitting a job if they felt underappreciated, according to Office Team, 76% of millennials would find new employment if their efforts weren’t recognised on a regular basis. 

For some organisations, particularly those who rely on managers and team leaders to be the sole standard bearers for recognising great work, this can cause a real issue. What behaviours should be recognised? How can organisations ensure great work doesn’t go unseen, and unrewarded? 

Many organisations who have embraced employee recognition technology and also empowered employees to take part in peer-to-peer recognition models are having great success in this area, making great work visible throughout an organisation and easier for management to see who’s delivering for the business. 

Prove a purpose beyond profit

Younger workers no longer want to simply work for a paycheque - they want to make a difference, contribute to a wider issue and most importantly, work for organisations with a strong social or ethical consciousness that aims to deliver more than posting an annual profit. 

Deloitte’s extensive research into the behaviours and beliefs of millennials has found that 74% globally say they believe businesses have the potential to make a positive impact on the big challenges facing everyone, including social progress and the environment, yet only 59% suggest big organisations are doing everything they can in these areas.

In fact, 75% of millennials would take a pay cut to work for a socially responsible company, with even more considering an organisation’s social and environmental commitments before deciding where to work next. 

As Ben Hayman, managing partner at Given London points out: “Jobs for younger people have become about identity. People want their job to say something about who they are not just what they do.”