close
Tuesday March 19, 2024

Turnover costs

By our correspondents
August 17, 2017

Many companies are finding it increasingly difficult to retain their workforce. Employees’ turnover has become a serious problem in today’s corporate environment. The employment culture is changing as more employees are demanding more balance between work and personal/family life. It is not uncommon to see people changing jobs every now and then to have better career opportunities and pay packages. Turnover costs are high for many businesses and have resulted in a huge impact in the financial aspect of an organisation. It is also difficult to take on the responsibility of the job position because the company is short on staff. This reduces the productivity, resulting in an overall reduction in profits and growth.

This is why hiring the right people is extremely important. It is rather ideal if the candidates and the employees share the same vision as the company and have a will to follow and grow with the company. Another way to reduce employees’ turnover is to make the company employee-oriented, focusing on interactions between all levels in the organisation and developing a sense of ownership among all these tiers. If an employee begins to feel that he or she is a part of the company, trust and loyalty can be built between employees and the employers who are deemed to be patrons and well-wishers of the employees. Attractive compensation packages also help retain the employees. The top companies that have a low employee turnover have attractive compensation packages, such as market-matching salaries, health and healthy work environment. Many companies offer vacations packages and other freebies, such as free lunches and recreational trips, to their employees. All these suggestions should be looked at so that more employees can be retained.

Faisal Shahzad (Lahore)