How does employee engagement impact employee turnover?
The corporate world is fast realizing the significance of human factor or employees in the success of an organization. The human resources of any company or entity have proven time and again the role played by them in the success of the company. The quality of people hired by a company turns out to be the key differentiator behind its overall performance and productivity. This performance can be measured not only in terms of overall performance but also the quality of service delivery, sales, and overall organizational management. It thus clearly indicates the significance of employee engagement that has an impact on their performance and ultimately on employee turnover.
What is employee turnover?
When the employees start voluntarily exiting the organisations for a variety of reasons or are relieved by the companies itself or forcibly retired thus leaving the organization severely affected. Sometimes the impact is quite negative in terms of costs and having the capacity to delivering the required services. The company has to invest a lot in recruiting and training the candidate. Moreover, new entrants also take a lot of time to settle before they can become productive and start contributing to the success of the company. As per experts, employee turnover is the biggest challenges faced by the organisations today and it requires urgent attention. The high attrition rate clearly means low morale among the employees and it can have a very poor impact on organizational productivity.
Also Read: How do the team building games help in building good relations among employees?
How employee turnover has a drastic impact on an organization?
Let us see how employee turnover can have an impact on the organisation.
High Costs
Employees leaving the organization turns out to be a very costly affair for a company. It is just like human capital investment going waste. The replacement procedure that starts subsequently also entails a heavy cost that has to be borne by the company. The costs of replacement include starting the search for a possible substitute, selecting the best from among several competing substitutes, hiring and induction, training of the candidate until he or she attains a reasonable performance level and more.
Losing a Trained and Experienced Employee
When a new person joins a company, a lot of investment is done on his training and induction so that he reaches the level of performance that is expected from him as per his job profile. Losing such a trained and experienced candidate due to voluntary leaving has a drastic impact on the company. It is not only about the cost, but the transfer of knowledge and succession also leaves an undeniable impact on the growth and sustainability of the company. It becomes difficult to ensure knowledge continuity.
Productivity takes a beating
The overall performance and productivity of the organization are also severely affected due to high employee turnover. The company loses well-trained and experienced staff who were well acquainted with the goals and policies of the company and the role they could play to achieve those goals. Going away from such employees is difficult, more so for companies that have very limited employees. For them, replacing workers can cause a serious issue affecting the productivity and performance of the business.
Reference: Employee Engagement: The Wonder Drug For Customer Satisfaction
How Can Employee Engagement Help Curb the Problem of Employee Turnover?
Studies have revealed that the companies where employee engagement is high, the rate of employee turnover is pretty low. We have already discussed the negative impacts of employee turnover and how expensive it can turn out to be, so it is high time, companies start focusing on ensuring their employees are suitably engaged and love working in the company. It is for this reason, many companies organise a variety of team building activities that gives a boost to employee engagement and robust team bonding. Activities like Triggertronics, Pyramid Building, Mafia Wars, etc., can do the trick.
Why people leave an organization?
There are many factors that may be responsible for employees leaving an organization. The major reasons may be a poor relationship with the superiors, not believing the company’s mission, a lack of challenge, lack of advancement and growth opportunities and more.
It is very important that a person working in an organization has 100 per cent belief and faith in the company’s brand and its mission. They must be given high-end tools to ensure they do a good job. At the same time, the employees must be treated well and given due respect for their undying efforts to meet the company’s goals. If the employees feel that they are not being appreciated for their efforts, they are still going to do their job but without their heart into it. In the end, they will have no choice but to leave the organization and move on. Thus, it is the responsibility of the company to ensure the happiness of their staff.
It is important to understand that the success of any organization is largely dependent on happy and content employees. As per many experts, it is the employee who is the number one and not the customer. If the employees are content, they will definitely work hard to make the customers happy.
Statistics indicate a 20 per cent increase in sales, 21 per cent higher productivity, 10 per cent high customer ratings and 67 per cent lower employee turnover at engaged workplaces. This means, the focus on keeping employees engaged needs to be increased so that retention can be increased in meaningful ways.
Reference: How Employee Engagement Hits The Bottom Line
How can organisations increase employee engagement?
Companies can take a few steps that result in high employee engagement. Some of these steps are-
· Giving employees more opportunities to grow
· Appreciating their efforts
· Active encouragement for their overall development
· Ensure team bonding with their colleagues and peers
· Giving due importance to their opinions
· They recognize their efforts towards the achievement of organizational goals
Though very simple, these things matter a lot when it comes to praising, appreciating and encouraging employees. The immediate supervisor can help foster and encourage these things. He must be always available to provide his support to his team in good and bad times. This constant support and encouragement work well and the employee starts feeling happy and devoted to his work. This results in excellent work performance and increased overall the productivity of the organisation.
