By Raghu Kshitiz
High employee turnover is a major concern for many
organizations these days, as it increases costs and lowers profits. Informal surveys
show that about 30% of employees leave their current employer within a year.
While a turnover rate of 10% to 15% is considered normal, it varies based on
the industry and job sector.
The main reasons for employee departure, as found by Michael
Page surveys, are lack of career advancement, seeking new challenges, and
insufficient pay. However, poor management and toxic work environments also
play a significant role.
To manage employee retention, companies offer benefits such as competitive pay, flexible work arrangements, learning and development opportunities, career growth, and more.
Strategies to Reduce Turnover
While a reasonable turnover rate can be beneficial,
retaining top talent should be the main focus of any retention strategy. Below
are some strategies that companies can follow to reduce employee turnover.
Culture and Communication
Promoting a positive corporate culture is crucial for
retaining employees. Companies with strong cultures tend to have higher
retention rates. Ensure that cultural fit is a key consideration in the
recruitment and selection process. Also, appoint managers with good
communication skills.
Develop Opportunities
Unfortunately, most Nepali employers do not offer training
or development programs, which is a top priority for employees looking to
advance their careers. Providing opportunities for employees to learn new
technologies is particularly desired.
Reward and Recognition
There is no official survey data available, but it is
believed that 60% of employers only increased salaries by less than 3%.
Insufficient pay is the main reason for employee departure. A competitive
salary and recognition for good work can help retain employees.
Flexible Work Hours
Employees have the right to request flexible working
arrangements, which can improve work-life balance and lead to better retention.
Transparency
Keeping employees informed about the business performance
and their own contributions can increase engagement and provide a sense of
purpose. Try implementing some or all of these strategies and monitor if your
turnover rates improve.
