Many of our clients initially engage Progressive Reliability due to issues with high turnover, which affects your bottom line in numerous ways. First, it’s expensive to repeatedly attract, hire, and train new talent. In all, a single failed hire costs your organization at least the equivalent of that position’s annual salary. Qualified candidates who notice a high turnover rate may be reluctant to apply at all. Failed hires can even have negative internal consequences if workplace morale dips as a result.
Employees may be motivated to leave a company for many reasons. The key to reducing turnover is to make your workers more inclined to stay. Here’s how.
- Hire for traits, train for skills: Curiosity, determination, punctuality, social awareness—these are traits that can’t be taught. Job seekers with these characteristics can fill even the most challenging roles, despite any lack of experience. Establish a strong onboarding and training program, and you’ll be sure to attract and retain the right people from the start.
- Maintain full transparency: When times are tough, everyone at your company knows it. Hiding the facts or running from challenges could cause even the most committed employees to lose faith in leadership. Keep your team in the loop to show that you trust them to help see the company through. Then, be sure to ask for their ideas and put their experience and vision to good use.
- Get the facts straight up front: Nobody wants to feel the victim of an unintentional “bait & switch.” Ensure your Job description, offer letter and hiring conversations are all well aligned with one another. If you mention a bonus or alternative compensation as part of the job, be sure these programs won’t be dropped as soon as your new hires come on. If the work is strenuous or the hours may fluctuate – be sure your potential new hire is fully aware & understands the job completely. The hiring process is one of the most often overlooked opportunities to establish trust with your changing or expanding team.
- Recognize and reward excellent performance: Providing raises, bonuses, and even non-monetary recognition such as an “Employee of the Month” plaque motivates employees to put in above-average effort. The perception that their work matters and makes a difference reduces employee turnover and improves the productivity of your entire team. Also, recognize long-time employees when they hit employment milestones, such as five, 10, or 20 years with the company. This shows consistent employees that they can expect consistent employment.
- Conduct employee satisfaction surveys: This shows that you respect and value your workers. If you notice a common complaint, act on it. After all, an unmanaged and unaddressed “suggestion box” is a huge impediment to morale, while solving an underlying problem makes for a happier, more productive team. Remember to keep satisfaction surveys simple and not overburdened with details. A rating system should suffice, as it’s a quick and healthy indicator of how your employees feel.
- Manage online reviews: Employer review sites like Glassdoor have become increasingly effective at recruiting—and deterring—employees based on crowdsourced information. Your damage control efforts should include assigning a team to manage negative online reviews.
- Involve workers in the decision-making process: Any changes that could affect your company’s working environment or overall direction should involve input from your hardworking employees. This creates a feeling of ownership, making your workers proud of their contributions to help move the company forward.
- Provide opportunities for career progression: One common reason for employee turnover in the manufacturing industry is feeling stuck in a dead-end job. Many workers embrace the chance for growth and the potential for increased pay, even if it means more training or education and the need to take on challenging new responsibilities.
- Don’t allow your company to become understaffed: Employees may become overworked, burned out, and more inclined to quit if they must continually put in more than 40 hours a week. Overtime pay also costs your company more in the long run. The key to getting everything done without overworking your team is to have enough employees on your workforce. Consider hosting parties and get-togethers a few times a year to celebrate your employees’ hard work and say thank you to their families for all the support they provide at home.
- Offer continuing education: One of the most overlooked attraction factors for driven and motivated employees is giving them the ability to improve their work. Provide opportunities for career and personal growth through ongoing training and education, challenging assignments, and added responsibility.
- Provide benefits packages: In addition to competitive wages, employees place great value in insurance coverage, 401(k) matching, and paid time off. The potential loss of such benefits encourages workers to stay.
At Progressive Reliability, half of the candidates we submit for a job are selected for a first interview, and one-third of interviewed candidates are selected and accepted for the job. Best of all, 95% of the talent we’ve placed for Direct Hire in manufacturing firms this past year are still working with the same company. Reducing hiring timelines and turnover rates are two of our top three Key Performance Indicators. Work with Progressive Reliability for all your hiring needs and increase your team’s performance! Contact us today to get started.