“...An organization has to know if they could have prevented an employee from leaving since this is the basis and foundation for understanding turnover." Robert Gray, President of Insightlink Communications
Palm Springs, CA (PRWEB) August 18, 2015
Employee turnover has historically been difficult to measure in dollars since the associated costs often do not appear as an item in company financial statements but, after decades of conducting employee research and hundreds and thousands of exit surveys, Insightlink has been able to identify the one key distinction in the turnover process that is the fundamental factor in assessing the true cost of turnover. What is this key factor? The degree of preventable turnover.
Insightlink defines voluntary turnover as how many employees leave by choice, which can be due to many different factors. Involuntary turnover, on the other hand, represents the employees who are let go by the organization, whether for just cause or because of a RIF (Reduction in Force). Employees who are terminated for cause still contribute to turnover costs because they often have to be replaced.
With respect to voluntary turnover specifically, Insightlink’s employee research has shown that it is extremely important to know whether their employees are leaving for preventable or for non-preventable reasons. Calculating this number is more valuable than simply knowing the reasons for leaving. Why? Because by making this distinction, organizations can begin to focus on retention strategies specifically designed to reduce this type of preventable turnover among their staff.
It is also helpful to learn what percentage of their turnover is non-preventable, representing the employees who leave for reasons that are outside of the organization’s control, since there is little to no need to take action here. Organizations cannot influence non-preventable turnover because employees may need to take care of other family members or are experiencing health problems or have decided to move out of the area.
In strong contrast to non-preventable departures, preventable turnover occurs when employees leave because of difficulties they are facing with their jobs or in their work environment.
Research shows that the top 3 reasons people quit are:
1. Lack of advancement opportunities within the organization
2. Unsatisfactory leadership of senior management
3. Poor working environment
The organizations using Insightlink’s proprietary exit surveys are not only able to make this important distinction between preventable and non-preventable turnover but can also learn what factors are causing most of their preventable turnover. This detailed information means they are much more likely to implement effective strategies to reduce their employee turnover. Having the ability to identify the causes that are unique to their own organization lets them achieve greater success by creating more targeted plans.
When asked what advice he would give to HR Managers, Robert Gray, President of Insightlink recommended that, “It is our belief that an organization has to know if they could have prevented an employee from leaving since this is the basis and foundation for understanding turnover in your organization. If you can identify what percentage of your employees are leaving for preventable reasons, then you can also dig deeper to get to the reasons why. Only then can you do something about it and take action to combat it.”
Insightlink has also developed a turnover calculator that incorporates all the costs associated with turnover which is available at no cost and without obligation to the company on their website. HR professionals and organizations interested in learning more about Insightlink’s capabilities and Exit surveys can visit http://www.insightlink.com or to schedule a demo and speak to a representative contact Lynn Lacey Gore at 1-866-802-8095 ext. 705.
About Insightlink Communications
Insightlink Communications is a leader in full service employee surveys and offers a range of employee survey products and services to fit their client’s needs. With over 15 years of experience, Insightlink’s reputation has been built on giving organizations the knowledge they need to create effective change using their acclaimed employee research, analytics, benchmarking and survey methodologies.