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Managing personnel turnover and retention


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Better management of workforce turnover involves assessment of the amount and types of turnover that are acceptable within specific industry. Managing staff turnover and retention explores possible reasons for turnover and allows to consider what organization management can do to retain more staff. This checklist is created to help HR managers and team leaders to better understand and manage staff turnover. 3,5 Kb

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1. Measuring effects of workforce turnover

  • Measure average number of your employees (add the number of employees at the beginning of a period to the number of people employed at the end of this period and divide by two)
  • Measure turnover percentage rate (you should multiply the number of left employees by 100 and divide by the average number of employees in the same period)
  • Consider impact of turnover to the costs, such as:
    • Separation costs
    • Temporary replacement costs
    • Recruitment and interviewing costs
    • Introduction and training costs

2. Assessing your company against others

  • Compare your organization's turnover rate against industry figures
  • Monitor labour market trends and conduct statistic surveys (use services of specific research agencies)
  • Consider demographic factors such as age, locations, ethic minorities, graduates, and other

3. Finding out the reasons for staff turnover

  • Consider external forces (higher wages, social benefits, competition)
  • Consider interpersonal attitudes (working for efficient boss, climate in a team, supportive colleagues)
  • Consider motivation factors (being assigned to interesting and challenging work, being recognized for efforts)
  • Ask your employees why they leave (e.g. give them a questionnaire to complete, conduct interview with leaver)
  • Ask ongoing employees why they think employees may leave
  • Address any issues that arose so that the employees will know that you are committed to reducing staff turnover

4. Implementing retention strategy

  • Make sure you offer competitive pay rates
  • Offer a wider choice of benefits (e.g. career enhancement, childcare, sabbaticals)
  • Improve work conditions through providing flexible working hours, job sharing, telework and remote work
  • Introduce career progression opportunities, such as dual career development for management and technical staff
  • Improve quality of supervision
  • Design equal opportunities policies (i.e. any employee can reach success and become promoted)

5. As a manager, you should avoid the following:

  • Impossibility to track labour turnover in your organisation
  • Misleading and misunderstanding by global turnover rates ...

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