Having turnover is normal and it is part of the healthy life cycle of every organization. However, if this turnover hinders the firm’s goals achievement due to crucial positions always vacant, there is a major issue within the organization. Moreover, the cost for employees turnover (although it may vary significantly from business to business and seniority) is quite high: it has been estimated that for each employee that leaves and has to be replaced the cost is around €35,000 per employee. This amount includes:
- Administrative cost of resignation
- Recruitment costs
- Training of the new resource and loss of productivity costs
- Definition of core competences and personality traits: soft and hard skills must be set with a clear picture of the role but also considers the labor market current availabilities and not set requirements that no candidate could realistically fulfill.
- Stretch the decision to hire for more than three/four interviews: by delaying the decision it is highly probable that the most promising candidates will accept an offer from another firm.
- Share the company’s culture and values: avoiding to talk about the company’s culture during the recruitment process may lead candidates to the wrong idea or setting the wrong expectations.
- Growth and progression opportunities: give to employees the opportunity to grow, be promoted or learn a new skill
- Work-life balance: if employees are working repeatedly long hours and weekend, they are most likely to feel exhausted and frustrated and search for another opportunity.
- Micromanaging: micromanaging stamps out the opportunity for innovation, while employees should be trusted to be part of the decision making process.