Staff turnover is the percentage of employees who leave a business over a monthly, quarterly, or annual period. Turnover rates can vary massively depending on the industry. For example, the financial sector has an average annual turnover of just 12.8%, but the hospitality industry is considerably higher, at 37.6%.
Unfortunately staff turnover is inevitable and it can have a significant impact on a company, from workflow disruption to increasing recruitment costs. But there are numerous ways you can reduce turnover rates in the financial industry – here are just a few.
- Conduct Exit Interviews
One of the most effective ways to improve staff retention is by identifying the cause of high turnover rates, and exit interviews are a great way to do this. Whether it’s poor career progression, inadequate work-life balance, or bad management, spotting patterns can help you make informed decisions about processes, bonuses, working environments, and more.
- Hire the Right Candidates
Investing more time into recruiting can improve your chances of hiring the right people from the start, reducing the need to re-hire. Potential candidates should have a complete understanding of what the job entails and employers should take the time to ensure the individual is well suited for the role.
- Offer Career Development and Training Opportunities
For people looking to build a career within the financial industry, being given opportunities to advance is essential. Staff should have a clear idea of what is required of them to move up and be provided with the relevant training to facilitate that progression.
- Ensure Staff Have a Good Work-Life Balance
Modern workers value a healthy work-life balance. By offering flexible working hours or remote working options, you can improve employee satisfaction and allow employees to maintain a good work-life balance. This should improve the loyalty of your staff and reduce the risk of burnout.
- Improve Efficiency
Leveraging technology, such as HR management systems and payroll software, can streamline administrative processes. This not only reduces human error, but also speeds up the payroll process, allowing you to focus more time on larger projects. Additionally, accurate and timely payments will improve employee satisfaction.
Managing Staff Turnover is Essential
Managing staff turnover is an essential aspect for any business in the financial industry. By getting feedback from employees, hiring the most appropriate candidate, offering career development opportunities, promoting a healthy work-life balance, and improving the efficiency of admin tasks, you can reduce your turnover rates and create a positive working environment for your employees.
