If organizations are passionate about one thing, it’s their people. Yet, as an influx of people continues to join the workforce, it can be hard to keep others from changing or leaving their job. According to a study, about 51% of employees are looking to leave their current positions. So, how can organizations get ahead and minimize their employee turnover problem? People analytics is the answer.
With voluntary resignations at an all-time high, adhering to employee retention has been the objective for many organizations. To actively uncover insight into how to alleviate employee turnover, organizations need more in-depth analysis. How? By addressing the real causes of turnover and how it affects different parts of the organization. Businesses worldwide use people analytics to help them assess critical factors affecting employee turnover. The integration of people analytics into any organization offers significant insights and benefits. Also, it allows businesses to make more informed and impactful workforce decisions. So, how can people analytics help improve your bottom line?Does the thought of your employees leaving keep you up at night? Discover how utilizing #PeopleAnalytics can help you alleviate #EmployeeTurnover with @TalentData. Click To Tweet
Five Key Employee Turnover Statistics
We all know turnover is a problem, but how big is it?
Did you know:
- More than 3.5 million Americans quit their jobs every month?
- The median employee tenure among workers in the United States is 4.2 years.
- According to the U.S. Bureau of Statistics, the average turnover rate in the U.S. is about 12% to 15% annually.
- A report from the Center for American Progress found turnover can cost organizations anywhere from 16% to 213% of the lost employee’s salary.
- More than 50% of all organizations globally have difficulty retaining some of their most valued employee groups.
What are the common drivers of employee turnover in the U.S.?
- Personal/Family (57%)
- Promotion Opportunity (35%)
- Career Change (27%)
- Base Salary (24%)
- Job Satisfaction (24%)
How to Support Employee Decisions with People Analytics
For most organizations, voluntary turnover can cost millions of dollars. To stay ahead of the game, organizations need to establish proactive retention tactics and apply them throughout the entire company. How? By utilizing an analytical approach, such as people analytics, to identify flight risk factors and leverage the power of data to drive action.
- Identify the Problem. Determine the leading causes of high turnover to assess if there’s significant damage already done. Utilize metrics such as:
- Resignation rate: Identify which segments are resigning. Is it your top performers, senior leadership, or managers?
- Business metrics: People analytics provides a bigger picture of how employee turnover affects your business, helping you to make proactive action faster.
- Uncover the root causes of turnover. Now that you know there’s a turnover problem, people analytics can dig deeper to help you find why your employees are leaving.
- Key drivers: Perform a thorough analysis to determine which factors increase and decrease turnover reformat retention strategies with insights, rather than intuition.
- Uncover correlations: Determine how employee turnover affects categories such as compensation, promotions, pay increases, performance, and training opportunities. With insights at hand, managers can support their decisions around enhancing developmental opportunities, benefits, and promotions, to manage costs, and retain the right people.
- Recognize which groups are experiencing turnover. Remember, not all turnover is bad. With people analytics, HR teams and professionals can assess which groups experience turnover, whether that be your low-performers or high-performers, and evaluate the impact employee resignation has on the business.
- Evaluate workforce attributes. Analyze who’s at risk of leaving from crucial characteristics such as location, role, age, diversity, performance, and more.
- Risk of exit. People analytics allows organizations to predict employees at risk of leaving before they turn in their resignation letter. PredictiveHR supplies managers with an at-a-glance view of analytics and reporting to identify issues before they arise with powerful, visual, and predictive tools.
- Design an impactful employee retention program. After you’ve recognized issues that are causing employee turnover, you can direct your focus on creating an employee retention program to retain key individuals in your organization.
- Internal Mobility. Assess and review employee’s skills and attributes to identify which internal candidates you want to hire for specific roles within your organization before recruiting candidates. HR managers can also look externally to see what other positions are being filled and hire candidates according to the demands of the labor market. PredictiveHR can help identify each risk factor to determine which candidates you want to hire for new opportunities within the organization.
- Provide more promotions. Are employees leaving due to the lack of advancement opportunities? By assessing the percentage of people promoted from the organization they worked at, during the start of their reviewal period, will allow organizations to gauge which employees deserve a promotion.
- Performance on new hires. New hire performance can give you insight into how effectively new talent is adapting and performing in the workplace and if your onboarding program needs improvement.
- Pinpoint recruitment trends. Data on past and present recruitment strategies and workforce planning can help HR teams improve L&D programs to ensure staff members have the necessary skills to perform or take over other roles within.
Reducing employee turnover can’t be solved when businesses are still operating from multiple, disparate systems or still utilizing spreadsheets to manage their workforce. Not only does this create a scattered, unorganized process, but it makes it difficult to assess what’s going on in your workforce. So, what’s the right solution to help you? PredictiveHR is the answer.
At PredictiveHR, we provide companies the right investment into workforce analytics with our CHRO Executive Lens, which allows companies to have the right workforce intelligence to alleviate employee turnover. With ongoing support and HR expertise from our staff, we help HR professionals understand their workforce, predict talent trends, reduce turnover, and focus on top talent.
If you’re ready to learn more about how PredictiveHR can drive better workforce decisions throughout your company, schedule a demo with us today!