As a business owner, you need to be aware of some of the problems that your company can face on the market. There are lots of pitfalls that you might fall into while running your company. One of the greatest concerns that you should be aware of is churn.
What Is Employee Churn
Employee churn is the rate at which employees leave your business, usually on an annual basis. You need your churn to be as low as possible for a variety of reasons. However, some research suggests that certain industries have an average churn of 20%. This means that they are losing about 20% of their workforce on an annual basis. A good goal to aim for would be a churn rate closer to 5%. This is manageable and sustainable. It also means that you don’t have to worry that there’s an underlying problem causing team members to leave your company. You can learn more about this on https://www.netsuite.com/.
Why Does It Matter?
There are a few reasons why you should be nervous about high levels of churn in your business. The first reason is that it suggests that there’s something about your business that employees don’t like. This could be anything from poor levels of pay to problems with your office culture. If this is the case, then people aren’t going to want to work for your company and it could lead to you missing out on the best talent. Churn is also an expensive issue. It will cause your business costs to balloon overtime and they can reach a point where they are no longer manageable at all. Don’t forget, every time you lose a team member you have to spend time and money refilling the position.
What Can You Do About It?
Now that you understand what employee churn is and why it matters, let’s focus on what you can do about it. First, you should explore the employee journey that you are providing team members. The employee journey is what happens when you hire them to work for your company. Are they getting the right guidance or are they being left to fend for themselves? If the latter is true, then you might want to explore resources such as https://www.learningbank.io/. Websites like this can help you craft the right employee journey and gain significant benefits from doing so.
You might also want to think about providing the right training to team members too. With the right training you can show employees that they are not in dead end positions. Essentially, you can ensure that they are continuously moving forward. If employees feel like they are in dead-end positions they will always leave sooner rather than later.
We hope this helps you understand everything that you need to know about employee churn and how it can impact your company. If you take the right steps, you can keep the rates of employee churn at the right point. As well as strengthening your business financially, it will ensure that you are not losing some of the best talent that you hire.
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M.E.L. is an attorney and small business entrepreneur whose mission is to help professionals conquer the workaday world with style and poise.
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