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What 5 strategies reduce turnover in the first 6 months of employment?

Tue, 11/10/2015 - 08:01

40% of all turnover happens in the first six months.
Another 16% happened in the next six months.
Therefore 56% of all turnover happened in the first year.

- Equifax

 

The cost of this is enormous!!

Put a number to your cost HERE.

People Profits Principle #84

Turnover is focused in the first six months
and can be the easiest to be fixed


There are two types of turnover: 

  1. INVOLUNTARY: The employee is ASKED TO LEAVE
  2. VOLUNTARY: The EMPLOYEE LEAVES for many reasons

There is also "Early Turnover":  first 6 months of hire
It can be both Involuntary or Voluntary

The causes or Early Turnover or infinite but in most cases fixable:

  1. Poor CANDIDATE SELECTION by the employer
  2. Poor ORGANIZATIONAL SELECTION by the employee
  3. MISUNDERSTANDINGS by BOTH the employee and employer
  4. Weak ON BOARDING by the employer
  5. Lack of ENGAGEMENT opportunities 

The list goes on and on.....


You can not recruit your way out of a turnover problem


5 STRATEGIES to reduce your Early Turnover:

  1. IDENTIFY who you are as an EMPLOYER and your TARGET EMPLOYEE
  2. Develop a SELECTION PROCESS
    1. Which helps YOU AND THE CANDIDATE make the right decision
  3. OVER COMMUNICATE to limit the chance of misunderstandings
    1. What misunderstandings have happened IN THE PAST? 
  4. An ON BOARDING PROCESS consistent over time and department.
    1. Which DRIVES ENGAGEMENT
  5. CONSTANTLY REALIGN based on RESULTS

People Profits case study: A manufacturing company reduced its' turnover by 42% in three years at a cost savings of $1.2 million a year. The cost of the strategies was minimal and were as outlined above. The strategies will differ with each organization, industry, culture, goals and employee demographics. Once the strategies were in place - they were realigned as results became apparent. 

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