Fighting high turnover within your organisation
There are many benefits on offer for businesses willing to invest in proven and reliable human resource management software – not the least of which being the ability to combat high turnover rates and improve employee retention.
Replacing a valued employee is expensive and disruptive. Costs accumulate in the form of lost productivity and reduced staff morale, as well as the tangible expenses of undergoing recruitment and training for the replacement.
In fact, William G. Bliss of the Small Business Advisor estimates that turnover can cost a business as much as 150 per cent of the lost employee’s annual salary. This number climbs to over 200 per cent for high-value managerial and sales positions.
Using Human Resource Management Software to fight high turnover
Human resource management software can be used to identify and review turnover KPIs by a variety of factors. You can assess employee turnover by position, location or team, or even take a holistic, company-wide view of the situation.
Benchmarking these KPIs against relevant data from your industry will help you identify whether your current level of turnover is consistent with your competitors, or whether there are other unforeseen factors that are causing employees to leave.
Once you have identified an unnaturally high level of turnover, the next step is understanding what is driving people out of the organisation. People leave a job for many reasons, but using HRMS to identify any ongoing trends can prove essential in determining where your recruitment and retention policies are going amiss.
Furthermore, HRMS can deliver a number of benefits to employee retention in its own rights, by maximising employee engagement and motivation, streamlining the recruitment process and improving learning and development opportunities.
For all of these reasons and more, it’s easy to see how human resource management software can help an organisation identify and reduce turnover and offer a valuable return on investment.