What if I told you 1/3 of your team was looking for a new job? According to data from Mercer, they are. To add to the pressure, there are more options for those job seekers than ever before. Between the gig economy, talent shortages, and a changing of the generational guard (the millennial is now the largest generation at work and will comprise up to 75% of the workforce by 2025), your employees have options.
Losing an employee can have a far reaching and lasting impact. Employee turnover costs more than filling a role; turnover can affect team morale, reduce individual productivity, and delay critical projects. And if you're in a specialized area, replacing that employee can take several months.
So what is a manager to do? Try these five key actions to reduce turnover.
1. Management Training
People leave jobs (and managers). According to Gallup polls, a full 50% of employees who quit cite their manager as the reason. Far too often, inexperienced managers are the cause of turnover. Unintentionally, it's because they are not properly mentored to be a manager but were simply the top producer. A development plan that identifies the specific skills needed by a new manager ensures success for a high performer and helps you retain their new team.
2. Succession Planning
Succession planning offers multiple benefits. For one, identifying internal candidates to fill leadership roles protects future company growth. It also offers a huge employee retention opportunity. By letting top performers know their career development has purpose for future plans, you give them motivation and a real reason to stay. Succession planning should be a formal process that documents successors, what skill development is needed and projected timeframes for preparation and promotion.
3. Building the Talent Pipeline
Be prepared. If an employee decides to leave, your team will appreciate you having a ready-to-go set of candidates to fill the gap. 38% of employers continuously recruit throughout the year. A talent pipeline helps you fill positions fast. Create a pipeline in advance by working with your HR department, a trusted staffing firm and professional networks.
4. Consider Consultants
By adding consultants to your team mix, you gain greater flexibility, helping to achieve special projects. Consultants bridge the productivity gap by bringing experience and expertise to your team. Contingent employees also increase morale because the workload can be more evenly distributed which will allow you to take your time in finding the right person to fill the role.
5. Take a Fresh Look at Team Structure
Many leaders have been taking a fresh look at their teams. What's the right mix? Some positions are best suited for a direct hire but others can be outsourced to support projects as needed. It's a great exercise to reevaluate the right blend of internal hires, consultants and outsourced business solutions for your organization. An outside perspective of a talent team consultant can offer new ideas, tips and even connections to find what you need.