Introduction:

In today’s competitive landscape, retaining top talent is crucial for organizational success. High turnover rates can significantly impact businesses, both financially and operationally. In this blog post, we’ll explore the costs associated with employee turnover and strategies to boost retention rates.

📊 2023 Canada highest turnover rates by industries (according to Mercer)  📊

Retail & Wholesale: 37.4%

Health Care Services: 18.0%

Consumer Goods: 18.0%

Services (Non-Financial): 17.5%

Logistics: 17.2%

Chemical: 9.3%

Energy: 9.7%

🎓 Turnover/ Retention rates Calculation 🎓

Example:

Pick a date range: Jan 2023- Dec 2023

100: Amazing Toronto Inc. has 100 of employees beginning of Jan 2023

15: There was 15 new hire this year

105: 105 employee on the book by the end of 2023 (including the new hires)

Retention rates= (105-15)/100= 90% at the year of 2023

Turnover rates: 10% in the year of 2023

Cost of Turnover:

The cost of turnover can be substantial, ranging from 33% to 200% of an employee’s annual salary. For instance, if 10 employees with an average annual salary of $70,000 leave a company, the cost of turnover could range from $231,000 to $1,400,000, depending on recruitment processes and replacement needs.

4 Strategies to boost Retention rates

1. 💡 Measure and Monitor for Proactive Improvement 💡

Stay ahead of turnover challenges by implementing robust measurement and monitoring systems. Proactively track retention rates and identify trends to address potential issues before they impact your organization’s stability and growth.

2. 🌱 Robust Onboarding Program 🌱

Onboarding is NOT orientation. A properly designed onboarding process will create a positive and productive environment for new hires. According to Harvard Business Review, organizations with a standardized onboarding process experience 50% greater new hire retention. 64% of invested onboarders report decreased turnover, compared to 37% in other organizations according to Human Capital Institute

3. 👩‍🏫 Personalized Mentorship Program 👩‍🏫

Foster a culture of growth and development by offering personalized mentoring opportunities to your workforce. Empower employees to reach their full potential through tailored coaching, skill development, and goal-setting initiatives. Studies have found that organizations with formal mentoring programs experience a 20% increase in employee retention.

4. 🏆 Recognition and Feedback Mechanisms to Drive Engagement 🏆:

Employee recognition is crucial for fostering loyalty and reducing turnover. Studies show that 80% of employees are more loyal to companies that regularly recognize their work. Additionally, research by Aon Hewitt revealed a 31% lower turnover rate in organizations with a strong culture of recognition. To implement effective recognition, organizations can leverage various platforms, including peer-to-peer recognition, team awards, and skill development initiatives. Establishing a continuous feedback mechanism through regular one-on-one meetings and employee surveys further enhances the employee experience and contributes to retention efforts.

Examples of these strategies include peer-to-peer recognition programs, team awards ceremonies, and ongoing skill development initiatives.

Conclusion

In conclusion, tackling high turnover rates necessitates a holistic strategy centered on employee engagement, development, and recognition. Implementing measures like robust onboarding, personalized mentoring, and engagement-driven recognition systems can significantly enhance retention rates. To optimize these efforts, organizations may benefit from utilizing a data-driven, interactive mentoring and onboarding platform. Such a platform streamlines processes, provides insights, and fosters meaningful interactions, ultimately cultivating a culture of growth and retention.