Are you tired of losing employees? Some studies predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For an employee making $60,000 a year, that is $30,000 to $45,000 in recruiting and training expenses. However, turnover varies by wage and role of the employee. The average cost of replacing an hourly employee is $1,500 (SHRM, 2023). Organizations should aim for a 10% employee turnover rate, but most fall from 12% to 20% (Deloitte, 2023). Specific industries report higher employee turnover rates due to the nature of the job (Forbes, 2023). According to Indeed, 2023, a higher than 20% turnover indicates something is probably wrong with your work environment. That means more than one out of five people who work with you do not want to be there.
I suggest you consider “Stay Interviews” or recently changed to “Engagement Interviews.” The purpose of these interviews is to focus on the employees and ask probing questions about why they stay at your company. The manager should conduct these interviews to build trust and openness.
These interviews should not be a company inquisition; they are intended for the manager to listen and learn from the employee. The employee should feel more connected to their manager and the company by doing so.
Here are suggested ten questions to ask:
1. What do you look forward to each workday?
2. What do you like most or least about working here?
3. What keeps you working here?
4. What would it be if you could change something about your job?
5. What would make your job more satisfying?
6. How do you like to be recognized?
7. What talents are not being used in your current role?
8. What would you like to learn here?
9. What motivates –or demotivates – you?
10. What can I do to best support you? Finally, what can I do more or less as your manager?
I suggest managers do three things: Listen, Learn, and Lead. By conducting these interviews, you can complete the first two, Listen and Learn! Then you must discuss with higher management how to Lead your organization and create a better working environment for your organization and employees.
References:
SHRM, (2023). Turnover Data by Industry and Region. https://www.shrm.org/resourcesandtools/tools-and-samples/hr-forms/pages/turnover-data-by-industry-region-size.aspx
Bersin/Forbes (2023) Turnover statistics. The HR Digest
https://www.thehrdigest.com/cost-of-employee-turnover-vs-retention-proposition/#:~:text=Employee%20Turnover%20Statistics,2X%20of%20their%20annual%20salary.