Your company’s business turnover rate is the percentage of employees that leave your company over the course of one year. A high turnover rate means that many of your employees have quit or left during the year.
High turnover rates aren’t great for your company. Hiring is expensive and high turnover rates can quickly drain your company’s budget, lower employee morale, and leave your other employees feeling overwhelmed.
So what does a high turnover rate mean? Consider the following reasons for staff turnover and how you can get your rate back under control.
You’re not hiring the right people
Professional background checks are necessary for making sure your potential hires have strong skills that match your open position. But you also need to make sure your hires fit in with your company culture.
During the interview, ask your potential employees behavioral interview questions to see how they would react in certain situations and talk to them about your workplace culture. Candidates who feel they don’t fit your workplace culture will back out of the hiring process on their own.
You’re not offering competitive pay and benefits
It’s always a good idea to do market research on wages when you’re determining compensation for your employees. Look into how much your competitors are paying their employees and how much the average person in your open job positions make. Employee retention rates increase when you offer a competitive salary.
For instance, if you need to hire an IT specialist in Atlanta, you should consider what other businesses in Atlanta pay their IT specialists. You need to offer competitive benefits and pay to get the employees you want.
You don’t offer virtual work opportunities
Employees under the age of 40 have grown up with technology, which means virtual work opportunities are seen as a convenient alternative to commuting. Unfortunately for employers who don’t offer remote work, it’s been shown that younger employees would be willing to change jobs for a remote position that paid the same salary.
If your company is tech-driven, consider offering your employees the ability to work remotely. Just be sure that you’re maintaining company security. You can do this by using both pre- and post-employment screening services.
Looking for experienced background check services for your business?
Up to 90% of companies recognize the importance of screening job candidates to avoid external threats, but not many businesses consider the risk of internal threats. Background check services help your company stay safe and secure from the inside out.
Whether you need third party employment verification services or professional screening and information, PSI Background Screening has got your company’s back. To learn more about our background check services, contact PSI Background Screening today.