Employee Attrition vs. Employee Turnover: What you need to know.
1 in 3 workers will leave their job to work somewhere else by the end of 2020. Do you like the sound of that statistic? No? Neither do we.
There are a number of metrics that many companies use in order to measure the efficiency of their recruitment. Employee attrition and employee turnover are often used interchangeably, but they do represent two different types of employee “churn”.
Employee attrition is referencing to the lifestyle of your employees, and how it affects their work. Some examples include, leaving due to a moved, changes in family circumstances, or even going back to school. It’s not negative, they aren’t leaving because of an issue but rather a life change. When unwanted employee attrition takes place, the company tends to be downsizing, struggling financially or perhaps are going in a new direction.
Employee turnover, can come as a result of an unsuccessful recruit, culture clashes and dysfunctional teams, but a massive 80% of employee turnover is a direct result of poor hiring. When employee churn occurs, as a result of turnover, the vacancy needs to be filled quickly. Did you also know that the cost of replacing a high-level employee is anywhere up to 400% of their annual salary! Just to put that in to perspective, if an executive is making £120,000 a year, the true loss of your company would be around 213% of that, totalling a huge £255,600. Would you be willing to pay this just because of a poor hire?
The KPMG and REC 2019 Markit report released last month recorded that candidate supply was at an all-time low. Widespread reports concluded steady increase in vacancies but a continuous rapid decline in candidates to fill them.
This brings us on to can you spot employee turnover before it happens? There are a number of indicators that help identify those employees whose minds are elsewhere.
Key indicators include:
- Absenteeism! Are they under work related stress? If you notice staff having extended leave. Are they applying for new jobs and interviewing elsewhere?
- Disengagement! On average 73% of unengaged works are looking for work elsewhere. Are your staff “zoning” out?
- Productivity! Unhappy staff produce 10% less work! So if your highest performers are under performing ask them why? What is going to help keep their focus and increase productivity?
But ultimately it is down to preventing the problem from the get go, and cutting that scary 80% of poor hiring down. Consider using a recruitment partner to save you time finding the right recruit with the correct skill set. Use skill testing programmes to short list the candidates you’re looking for and finally encourage new candidates to meet the team to prevent cultural misfits.
Seek assistance for hiring, it will relive the load from your own desk and/or your HR department and in turn prevent hiring people who don’t fit into your organisation. WE take care of everything recruitment related to make your search as smooth as possible. We build a deep understanding of your requirements, preferences and priorities to ensure candidates are a great fit culturally as well as having the right skills.
You can either cherry pick what works for you or pick Cherry and we will find the perfect candidates to for you.