The 21st century, the times in which we currently live, is characterized by dynamism, development, and the pursuit of information. We process it in many ways, which influences the emergence of new business branches, new positions, and challenges related to workforce fluctuation.
Employee turnover is known as leaving a company, project, or department. It is a natural and inevitable process. Employee turnover can be divided into natural – referred to as good employee turnover and excessive (harmful) for the company and the team it occurs in, which is referred to as bad one. Good employee turnover includes scenarios like promotion, reassignment to another project. On the other hand, bad employee turnover involves excessive departures from the company, which can be caused by various factors such as workplace atmosphere, lack of communication within the team, compensation, and lack of development opportunities.
To better understand the phenomenon of good and bad employee turnover, it’s worth paying attention to the concept of employee turnover rate. Employee turnover rate is the movement of employees within the organizational structure or outside of it (hiring, employing, dismissing, and departing from a workplace).
Currently, HR departments have a multitude of tools for measuring the employee annual turnover rate. To calculate employee turnover rate, we need divide individuals who have left the company by those currently present in the organization during a specific period.
So, why calculate turnover? It provides information about the level of staff turnover (as percentage and average number of employees), broken down by departments, teams, and branches. This allows for assessing the situation and swiftly responding to concerning data. High turnover rate is a call for action within your company. Whereas the number of employees is still the same, the knowledge levels will turn drastically.
There are two types of employee turnovers: voluntary and involuntary. Voluntary turnover entail an employee’s conscious resignation from their job (e.g., due to the work environment) or the emergence of a better offer in the market. Involuntary departures, on the other hand, are not directly within the employee’s control, such as position elimination or unexpected events. While involuntary departures are to some extent “acceptable” (as we have limited influence over them), voluntary resignations should be analyzed. Usually, certain number of employees who leave want to share their experiences.
To comprehensively understand turnover, it’s important to calculate the retention rate as well. This metric reveals the percentage of employees retained by the company over a specified time frame. Analyzing both voluntary and involuntary turnover alongside the retention rate can provide insights into the overall health of your workforce.
The job market’s competitiveness is significant. Factors contributing to this include low unemployment rates, a wide range of benefits, transparency, dynamic business growth, advancement opportunities, and consequently – salary increases. Every company faces higher turnover challenges.
A common mistake often made is being a boss rather than a leader. A leader is someone who inspires action, shows the way, and supports employees in reaching their goals. A boss is someone who focuses on expectations, offering nothing beyond a report on goal achievement. By humanizing the manager’s image, we can effectively decrease turnover in the call center, as daily work. Communication and atmosphere are key expectations in today’s job market.
Also, another crucial factor is a proper onboarding process for new employees.
Additionally, the training team and the quality control department play a crucial role in the whole process. The training department continuously enhances employees’ competencies. And the quality control department, alongside managers and advisors, summarizes the entire area of knowledge acquired. Feedback from ongoing work is another element that supports employees. It’s important for this feedback to be informative and constructive. Collectively, all departments together create a consistent and credible company image.
There is no single universal model for preventing or reducing workforce fluctuation in a particular organization. Various strategies can be implemented, average turnover rates can be calculated, but it’s crucial to remember that every organization is unique. Companys’ employees, mission and vision should guide the path the company takes to effectively collaborate and create a conducive working environment for its employees.
The Call Center industry is particularly susceptible to workforce fluctuation. What’s the cause? Projects undertaken by call center employees can become monotonous after a certain time. The highest turnover rate is observed in the first 3 months of their employment.
Transparency should be a focus at this stage. Building an employer’s image in the eyes of employees starts as early as the recruitment process. Candidates pay strong attention to the accuracy of the information provided and whether their expectations align with what they will encounter in the company on their first day of work.
The golden solution to employee retention could be fostering awareness in employees and conveying the company’s values. Referring back to earlier point about employer image building and transparency, both processes should align, as this affects employee efficiency and identification with the company. If employees feel good in the company during their initial days, we ensure their onboarding, as already mentioned. Next, maintain message consistency, and fulfill their expectations (those learned during the recruitment interview). Then there are high chances of reducing turnover levels in the call center right from the beginning of their collaboration.
Among more experienced Call Center employees, reasons for leaving can vary. Besides the aforementioned factors, relationships with supervisors, team atmosphere, growth opportunities, compensation, etc., play a role. The departure of an experienced employee isn’t always solely determined by compensation. Getting to know your people better by conducting an Employee Satisfaction Survey can reveal what’s important to your employees, which of your initiatives matter to them, and which processes the company should improve. Taking it a step further, managers are crucial in the entire needs assessment process. They are the ones working with people every day and possess the best understanding of their teams.
Every organization is seeking an answer to question how to improve employee retention rate. While there’s no one-size-fits-all solution, striving for a balanced approach is essential. Factors such as employee benefits, growth opportunities, work environment, and effective communication play a significant role in mitigating turnover.
By consistently analyzing your turnover rate and its components, you can adapt strategies to retain talent and create a more stable and motivated workforce. The key to success lies in understanding your employees and assessing their needs. Appreciating employees, expressing gratitude for their daily work, and demonstrating how the company is growing thanks to their efforts and engagement – this is a starting point to improve turnover statistics of your business.
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