Every time an employee quits, it costs their employers time, money and can potentially unsettle your team morale. In consequence, it is more important than ever to look at how to properly manage one’s staff to reduce staff turnover within a company.If you’re unable to retain staff due to them wanting to retire or move to a new city, then there’s not much that you can really do about that. However, you can retain staff who are feeling undervalued, underpaid, or those who see no progression within your organization.In this article, we will explain what exactly staff turnover is, why staff turnover happens, and provide some tips on how Hong Kong employers can reduce staff turnover.
What You Will Learn:
What is Staff Turnover
Why Does Staff Turnover Happen
6 Ways to Reduce Staff Turnover Rates
1. What Is Staff Turnover?
Staff turnover, or also known as the employee turnover rate, is usually defined as the measurement of staff who leave a business during a specific time period. Typically, the results take into account one whole business year.
2. Why Does Staff Turnover Happen?
There are many reasons why employees of a company may choose to leave. However, below are some of the most common reasons for why staff turnover does happen:
Lack of training, support, or resources necessary for employees to complete their job responsibilities
Poor management from their supervisors
Unable to fit in with the business culture
Lack of career advancement opportunities
Toxic work environment
Receiving a competitive offer from another company
Lack of work-life balance
Understanding the causes of employee turnover can help employers implement the necessary changes to reduce staff turnover and maintain a strong roster of staff. However, simply understanding these causes may not always be enough – in many instances staff turnover can be reduced through taking action!
3. 6 Ways to Reduce Staff Turnover Rates
To Retain Staff, You Must Encourage IdeasReduce staff turnover by creating a workspace environment in which your employees feel that their employer appreciates both their ideas and their perspectives. Employers should encourage their staff to present new and innovative ideas, and of course, regularly asking for staff input is a big part of that. However, one should always remember that even bad ideas should be met with respect. You’ll find that by simply listening, you’ll lower your employee turnover rate by making sure that everybody feels valued and respected.Show You Care Through Supporting DevelopmentPersonal development is key when it comes to lowering employee turnover. When you show your staff that you care about their path inside (or even outside) your company, you’ll be able to promote feelings of empowerment within. To retain staff, ensure that you show support, contribute to aspirations, and make them feel valued at all times.Promote From WithinWhen you choose to promote from within, it really shows your employees that all of their efforts do matter. Imagine you’re in a position where you’ve been working months for a promotion, just for your boss to tell you that the very position you were aiming towards has been filled by an outsider? How disheartened would you feel? Make sure that you’re always leading by example, and encourage staff retainment by showing everyone that hard work really does pay off.Avoid Micromanagement, Allow FreedomSome of your most valuable staff will exceed in tasks given to them thanks to their skills, creativity, and communication. That’s how they thrive best, and that’s why it’s essential to give them as much creative freedom as possible. Give them the power to be themselves and pursue new ideas alone. In order to succeed in reducing staff turnover, micromanagement needs to become a thing of the past.Pay What They’re WorthWhat’s it worth to your company when it comes to retaining staff that add value? Obviously, they’re making you money, if they weren’t then you wouldn’t be so worried that they might leave. So, why wouldn’t you pay them what they’re worth? After all, if you don’t, somebody else will.Make Their Lives EasierWhile the primary responsibilities of employees is to manage their job responsibilities, they are also responsible for ensuring that they follow their employer’s internal HR procedures! Aspects such as claiming varying types of leave, filing expense claims and reporting their salary tax obligations are also expected of staff. However, sometimes managing these responsibilities can be tedious, especially after a full day of work.Employers should consider reaching out to a professional HR advisor who has experience with various cloud-based HR / payroll solutions – business tools that can make the lives of employees easier when managing these responsibilities.HR advisors often utilize such business tools as they offer a diverse range of benefits not commonly found in traditional payroll systems. Very simply put, these tools provide increased efficiency, improved financial control and allows staff to spend more time on business driving activities. For example, platforms such as Workstem are catered to local Hong Kong companies and allow their users to manage their staff in accordance with all of Hong Kong’s local legislation!
How Fastlane Can Help
Let’s face it, valuable employees don’t grow on trees. Businesses around the world spend a lot of time and money when it comes to finding the right people for the job. Learning the strategies required to reduce staff turnover has always, and will always, continue to be a necessity.The FastLane Group are professional HR advisors. Not only can we help employers improve their internal HR processes, but our knowledge of Hong Kong’s Employment Ordinance means that we have the expertise to help you manage your statutory obligations as a Hong Kong employer. We are also a dedicated Hong Kong based payroll and HR services specialist and serve a broad spectrum of SMEs which includes both local and foreign organisations. We ensure that every aspect of your business complies with current regulations and ordinances. Please contact us for enquiries!