Turning the Tide on Staff Turnover
For many organisations working in the care sector, where resources are often limited and the workload is heavy, staff turnover presents a significant challenge. If those not aware, turnover refers to the rate at which employees leave an organisation and are subsequently replaced. It's a critical metric, often expressed as an annual percentage, calculated by dividing the number of separations by the average number of employees, and then multiplying by 100. Turnover rate tolerance differs from organisation to organisation and even between programs within an organisation.
Hence why, organisations should be studious when defining high turnover and establishing their target turnover rates. Benchmarking with comparable programs and services is great way to verify your position and add confidence to your selected management approach.
Keep in mind that not all turnover is 'bad'; on the contrary, most workplaces should aim to maintain a sustainable level of turnover. However, when turnover becomes unsustainable and starts to create managerial issues, it tips into the 'high' category. High turnover has a host of deleterious effects, which can include:
· Increased costs: Recruiting (replacement) and training new staff requires significant investment. High turnover means these costs recur more frequently, which can be financially draining for NFPs that typically operate with constrained budgets.
· Loss of knowledge: When employees leave, they take with them valuable knowledge and experience. This loss can disrupt continuity, weaken organisational memory, and lead to a decline in the quality of service or program delivery.
· Lowered morale: Frequent changes in team composition can affect the morale of remaining staff and management. It can create an environment of uncertainty and reduce the overall job satisfaction and engagement of other employees.
· Reduced productivity: It takes time for new hires to reach the productivity levels of their predecessors. High turnover can lead to gaps in operations and a continual cycle of onboarding new employees, which can hinder an organisation's efficiency and effectiveness.
· Strained relationships: For NFPs that rely on building strong relationships with donors, clients, and partners, high staff turnover can damage these relationships. Consistency in contacts and rapport is key to maintaining trust and confidence in the organisation.
To tackle high turnover effectively organisations will need to commit to the change process, below we have outlined several tried and tested strategies to assuage high turnover rates:
· Fostering engagement and recognition: An engaged employee is a retained employee. NFPs can boost engagement by regularly recognising and celebrating staff achievements, whether through public acknowledgment, awards, or features in internal communications.
· Offering competitive compensation: While NFPs may not have the financial leeway of for-profit entities, they can still offer compelling benefits like flexible scheduling, health benefits, and FBT arrangement to make compensation packages more attractive.
· Providing clear career pathways: Offering employees opportunities for advancement and skill development can significantly enhance job satisfaction. Initiatives such as mentorship programs, professional development workshops, and leadership opportunities for staff can contribute to a sense of progress and loyalty.
· Cultivating a supportive culture: A work environment that resonates with staff values and provides support is key to retention. This includes fostering a team-oriented atmosphere, promoting work-life balance, and ensuring managers are approachable and receptive.
· Implementing continuous feedback loops: Consistent and constructive feedback is vital. Structured performance evaluations that encourage a dialogue between staff and management can help employees feel valued and invested in the organisation’s success.
· Learning from departures: Exit interviews offer a wealth of information. By understanding why employees leave, NFPs can identify and address systemic issues, preventing future turnover.
The final suggestion is reviewing the overall pattern of turnover and exploring the data around what roles, programs, divisions, teams, jobs, types of exit (resignation, termination) etc. are frequent contributors to your turnover cycle. Sometimes it’s the job design itself that could be the culprit. But don’t forget to stay positive and focus on recognition, competitive benefits, career development, and a supportive culture, as these underpin a strong retention strategy and will ensure that you build a dedicated and effective workforce.
