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How Agile Organisations Avoid High Turnover

A man filling a box with his office stuff.

Busi­ness­es that incor­po­rate con­tin­u­ous per­for­mance man­age­ment enjoy low­er lev­els of turnover by pri­ori­tis­ing these key practices

High turnover has been a hot top­ic in tal­ent man­age­ment and HR cir­cles for years. When turnover is low, com­pa­nies ben­e­fit from improved morale and low­er costs. Gen­er­al­ly, the more com­plex and high­er lev­el the job role, the high­er the cost of turnover. Such costs can equal one month to sev­er­al years’ salary when an employ­ee jumps ship. It is easy to see how these num­bers can stack up and severe­ly impact a company’s bot­tom line.

Today, busi­ness­es are begin­ning to beat the brunt of high employ­ee turnover by becom­ing more agile. Agili­ty — the abil­i­ty to rapid­ly respond to changes in the envi­ron­ment — has been said to be crit­i­cal to mod­ern busi­ness suc­cess. With the char­ac­ter­is­tics of the aver­age agile organ­i­sa­tion in mind, mod­ern busi­ness­es are doing the fol­low­ing to retain their top tal­ent and pro­mote engaged employees.

1. Giv­ing Employ­ees Con­trol over Their SMART Objectives

Auton­o­my and inde­pen­dence are key to con­tin­u­ous per­for­mance man­age­ment and agile organ­i­sa­tions. These organ­i­sa­tions under­stand how impor­tant this auton­o­my is in rela­tion to goal set­ting, as employ­ees who have more of a say in how, where and when they work are more engaged. Peo­ple are also much more like­ly to accom­plish goals when set­ting goals themselves.

Com­pa­nies who val­ue agili­ty are putting more pow­er in the hands of their employ­ees. This gives them own­er­ship over their objec­tives and makes them feel like a val­ued mem­ber of the team. As a result, team mem­bers enjoy a sense of belong­ing that makes them less inclined to want to leave for a competitor. 

2. Encour­ag­ing Social Connections

Hav­ing friend­ly rela­tion­ships at work isn’t just fun — it’s ben­e­fi­cial to pro­duc­tiv­i­ty and can help to min­imise turnover in the long run. Psy­chol­o­gists will attest to the fact that human beings are socia­ble crea­tures who require a cer­tain lev­el of social con­nec­tion in order to thrive and per­form optimally.

Accord­ing to one sur­vey, two-thirds of peo­ple who had an office spouse” said the rela­tion­ship con­tributed to their hap­pi­ness at work. Gallup has also shown how impor­tant it is to office morale to have a best friend at the com­pa­ny. This is why many com­pa­nies encour­age water cool­er con­ver­sa­tions or pro­vide oppor­tu­ni­ties for com­pa­ny outings.

3. Intro­duc­ing Flex­i­ble Work­ing Measures

It has been shown time and again that when a com­pa­ny is more flex­i­ble, it can encour­age employ­ee loy­al­ty. You only need to con­sid­er the logis­tics to under­stand why — an employ­ee who is frus­trat­ed by a long com­mute might be able to work remote­ly rather than look for work else­where. A par­ent who has to be at home by ear­ly after­noon might be more inclined to keep their job if they had the pos­si­bil­i­ty of job shar­ing. Maybe anoth­er employ­ee who needs to jug­gle exter­nal com­mit­ments would great­ly appre­ci­ate flexi-work­ing. Not all flex­i­ble work­ing options will work for every busi­ness, but it is cer­tain­ly an area where busi­ness­es can alter process­es to retain val­ued employees.

4. Pro­vid­ing Ongo­ing Training

Train­ing begins as soon as an employ­ee is recruit­ed, and it can make a huge dif­fer­ence to employ­ee turnover. Research by the Aberdeen Group found that a suc­cess­ful onboard­ing pro­gram can improve reten­tion rates by 50%. While anoth­er study sug­gests that 40% of employ­ees who receive poor train­ing leave their posi­tions in the first year. Employ­ees need to feel con­fi­dent and capa­ble in their roles, and train­ing is the only way to pro­vide this. Indi­vid­u­als who feel in over their heads will like­ly leave for a com­pa­ny where they feel more at ease and able to grow.

5. Rein­vent­ing Feed­back Cul­ture and Intro­duc­ing Reg­u­lar Per­for­mance Discussions

Reg­u­lar and fre­quent per­for­mance dis­cus­sions are at the heart of agile per­for­mance man­age­ment — sin­gle, year­ly per­for­mance dis­cus­sions are no longer prov­ing to be con­struc­tive in such a rapid­ly chang­ing busi­ness envi­ron­ment. Com­pa­nies who have intro­duced reg­u­lar check-ins have noticed a clear reduc­tion in vol­un­tary turnover. One clear case being that of Adobe, who aban­doned year­ly appraisals in 2012 and saw their vol­un­tary turnover decrease by 30%.

Reg­u­lar per­for­mance dis­cus­sions give employ­ees the oppor­tu­ni­ty to deliv­er feed­back and ask ques­tions. They also give man­agers the oppor­tu­ni­ty to encour­age, get updat­ed on progress and give recog­ni­tion. Impor­tant­ly, it allows a rela­tion­ship to devel­op between man­ag­er and employ­ee, which is cru­cial as this rela­tion­ship has a huge bear­ing on employ­ee engage­ment lev­els.

6. Using Per­for­mance Man­age­ment Software

Keep­ing track of employ­ee objec­tives, progress and train­ing can be dif­fi­cult, par­tic­u­lar­ly as your organ­i­sa­tion grows and becomes more com­plex. As such, com­pa­nies are mak­ing use of con­tin­u­ous per­for­mance man­age­ment soft­ware to bet­ter enable agile process­es and to engage employ­ees, ensur­ing they remain onboard and are as pro­duc­tive as possible.

Clear Review has helped com­pa­nies devel­op stronger, bet­ter per­form­ing teams all over the world — to find out how we can help you reduce your turnover and boost pro­duc­tiv­i­ty, get in touch with the Clear Review team today.