High employee turnover can be deadly. Imagine that you will grow more than 100% in the coming year and to make that possible you must double your workforce. But what if 40% of your current employees leave? However, the resources, time, and energy you have budgeted are only for the additional new hires right? It is clear that you will miss your targets.
The story of high employee turnover
This is the story of one of our partners who were suffering from repeated missed targets and an employee turnover of 120%. Can you believe it? 120%!
Our engagement with them started with the simple objective of finding the root cause(s) of the high employee turnover and fixing the leaky bucket.
Our benchmark employee experience assessment uncovered several areas that were impacting employee turnover. Digging deeper we were able to triangulate the core issues for each of the demographic cuts in the organization. Moreover, by measuring the leadership styles and managerial styles, and process maturity, we were able to relate the “whys” of the issues.
The data made it clear what the managers were doing wrong and what policies needed to change.
The intervention started on two fronts:
- Helping people managers to understand what is happening in their span of control and why is that happening. The next intervention came through our behavior modification engine that gave real-time nudges to managers and employees to inculcate the right habits.
- On the other front, we started tweaking some processes and policies such as onboarding, performance management, leave to initiate an organizational-wide change.
In essence, the focus was to fix a few issues by quick and easy fixes and others by a more structural habit change in the organization.
The result? We saw employee turnover drop from the first quarter itself. By the time we finished the first year, the turnover had dropped to 23%. Still a high number but a drastic improvement from the initial 120%. This resulted in an over 500K $ impact on the company’s employee lifetime value.
The focus for the second year was to reduce the turnover further and also enhance employee productivity. Had they not intervened at the right time, maybe they were headed for a fate similar to this company.
How do we do it?
Our product simply collects real-time employee feedback → Converts feedback into tangible scores to identify gaps → Measure drivers that cause gaps → Recommend changes to be made → Nudge the entire organization to make the change happen. To do what? Keep the employee turnover and employee productivity in check. After all, companies that work on employee experience strategically, create disproportionate value vis-à-vis competitors.
What goes behind is a lot of science. This science deals with people’s psychology on what makes or breaks their motivation to go the extra mile for a manager, team, or company. At each step, the only thing to focus on is how to make the organization successful in its vision. After all, that’s why you started your company, no?
When you do this, you enable the change at every genome of your company.
- Individuals align better with the organization’s mission and take ownership.
- The organization communicates, innovates, and grows better.
- People managers take charge of making sure that their span of control is delivering in the best possible manner.
The result? Higher performance levels in the organization and lower employee turnover aka. higher employee lifetime value.
Image by Gerd Altmann from Pixabay