BY C. Lee Smith
The need to reduce employee turnover should be at the top of the goals list for every CEO. Higher operating costs, missed production deadline and a weak company culture are just a few of the outcomes managers face when too many employees leave. Managers can use workforce analytics and psychometric assessments to keep their team members happy and productive.
What Is Employee Turnover?
Valued team members retire, move to a new region, or simply find a job they believe will better meet their needs. Other team members don’t like their jobs, coworkers or managers and take positions elsewhere. The percentage of employees who leave an organization, based on the total employee headcount, is measured as employee turnover. Every organization experiences undesirable turnover rates. The average loss rate, voluntary turnover, across all industries last year was around 18%.
Traditionally, industries with the highest voluntary turnover rates include construction, leisure and hospitality, and transportation. High turnover rates are predicted for specific professions – such as registered nurses and retail sales associates.
Understanding Employee Turnover: Key Causes
Employees may leave an organization for a wide range of reasons. Our research on sales rep departures is telling. 30% leave because of issues with a manager. In many cases, the bad fit between two individuals is a turnover risk factor.
Company leaders can minimize these problems by using the Four FitsTM tool in TeamTraitTM. This employee retention tool highlights where a manager and a potential employee may have trouble in their working relationship. For example, a manager may give feedback with the goal of positive intent. But an employee may interpret that feedback as being critical. In these cases, the manager should use the workforce analytics provided by assessments to adjust their style.
But employees have other reasons for departing. Over 25% report:
- No opportunity for advancement
- No opportunity to make more money
- The company didn’t care about them
Gallup research supports these findings and highlights an area of concern in the modern corporation. Employees who leave indicate that their managers have not been reaching out in the right way.
Nearly half of departing employees say their managers did not have conversations with them about the future. “Meaningful conversations,” make employees feel that someone cares. When that doesn't happen, employees start looking for new jobs.
How Workforce Analytics Help Reduce Employee Turnover
The workforce analytics data from psychometric assessments provide managers with the information they need to reduce voluntary turnover. If they want to have meaningful conversations with employees, they should understand team members’ motivations and comfort level with their job duties. With the right employee data, managers can be proactive about developing effective retention strategies.
Motivational Traits
Managers should understand what motivates each person on their team. It’s easy to assume that everyone wants to earn more money or have a bigger title.
In truth, an individual’s motivations may be more complex. They may want more control over their work process or schedule. Learning new things may be a key driver for a high-producing employee. If a manager doesn’t acknowledge and address that motivation, they may lose that employee. Unfortunately, a manager can almost predict employee turnover in these situations. And, all too often, they take no action.
Work Traits
Workforce analytics also reveal an individual’s core work traits. Every team member possesses a different mix of work traits such as drive, optimism and problem-solving ability. Managers can use this information as a form of predictive analytics to reduce employee turnover. When they assign high-volume projects to a high-producing employee, that employee will thrive. They won’t be looking around for other positions.
Actionable Strategies Using Workforce Analytics
Once managers understand who their employees are in terms of work behavior and professional goals, they can develop actionable strategies. They should accept that few employees will come to them proactively and ask for a different job. Employees will find it easier to find another job in a different company. The responsibility for reaching out to change the status quo rests with the manager.
Early Warning Systems
The number of employees who are actively seeking a new job should be alarming for every manager. According to the forthcoming AudienceSCAN 2025 survey, roughly 34% of U.S. adults will be looking for another position this year. This is one out of three people. They are scanning job postings, sending out resumes, and seeking change. As they do so, they are much less engaged with their current work and employer.
Personalized Retention Plans
Some amount of management time must go to providing regular feedback in order to increase employee retention. During routine one-on-one meetings, managers should help employees identify what they are doing well and what they could be doing differently.
These topics should not take up the entire meeting. Managers should work with employees regularly to establish goals regarding a team member’s career path. Measuring progress toward these goals should be a part of regular conversation.
In these meetings, managers should resolve to listen more. And then, they can help employees formulate goals regarding promotions or changing job responsibilities.
Improving Hiring & Onboarding
Workforce analytics can shine in the hiring and onboarding process. The predictive analytics data from psychometrics assessments show managers who has the skills to do the job. And behavioral assessment tools score the soft skills a candidate will bring to the workplace. A solid employee retention strategy starts with the onboarding process. Workforce analytics from hiring assessments will reveal what the employee already knows. Managers can personalize their training by focusing on what the employee needs to learn.
Enhancing Engagement & Culture
Using predictive analytics, managers can monitor employee engagement. Individuals who begin to withdraw during meetings and miss deadlines could be at risk of disengaging. These behavioral changes warrant manager attention.
A proactive conversation with an employee about their future indicates that a manager cares. When managers take the time to nurture employees and guide them through skills development and career pathing, people notice. The managers and the culture develop a reputation for truly helping team members achieve their professional goals.
Using Workforce Analytics Tool
Managers can use workforce analytics tools to establish meaningful goals with employees. Each goal can be divided into multiple parts, and as employees reach milestones, managers can reward and recognize them. Because each person’s motivations are unique, the rewards and recognition they receive should be personalized. One employee will want time off while another employee will appreciate being sent to a workshop.
Conclusion
The level of employee turnover in some industries is staggering. To improve employee retention, organizations can use workforce analytics provided by employee behavioral assessment tools. These tools help managers development effective retention strategies, especially with regard to learning and development, job fit and rewards and recognition. And they will ultimately reduce employee turnover.
