Steps to prevent turnover
WHEN was the last time you sat down and really thought about the reasons for high turnover within certain departments and jobs in your organization?
Many times when you actually do take time to examine the issues related to turnover, it’s limited to an analysis of things like interpersonal conflicts or poor manager-employee relationships. For some reason, managers don’t want to admit that perhaps their corporate compensation is not meeting market rates.
When a manager and an organization finally admit their salaries are low, they often try to justify it by pronouncing that of course, any potential candidate “worth their weight” would not be attracted simply by money, but rather they are more interested in the values of the company, the vision for the future, the challenge of the job and/or the promotional opportunities. Therefore, with this type of reasoning, nothing is done about salaries and turnover continues.
Failing to accept that compensation does have an impact on one’s ability to recruit and retain staff is definitely faulty thinking. Salary does indeed play a key role in attracting, motivating and retaining employees. Other than having to physically move geographic locations, my experience is that the issue of salary and benefits is definitely one of the key reasons why people will leave an organization and change employers.
Yet, ensuring you are paying a competitive salary is not as simple as it may appear to be. In fact, employers need to do more than create a salary that is competitive in the local marketplace, they need to develop a complete compensation strategy that is fair, standardized, internally equitable for all employees, easy to administer and easy to adjust. Now, this takes planning.