
We are in a period when many people are in job-hunting mode. This leads to a lot of unwanted turnover.
Replacing employees is not only expensive, it can also be a loss for colleagues that affects their motivation. It can also change the dynamics in the workplace. A new person has to come in and be trained. If you are a team with mutual dependencies, it can take time before you find your way back to a good dynamic with a new employee.
Research has shown that what matters most, apart from actually thinking about leaving (turnover intention) and actively looking for a job, is affective organisational commitment. This is about feeling proud of the company, a sense of belonging and being part of a family – either to the organisation as a whole or to the team you work in. We also know that development opportunities are important. If employees feel there are no opportunities to develop their competence, the thought of leaving may grow.
When employees feel that their leader and the organisation are supportive and want the best for their employees, this increases commitment and social belonging to the company. Employees will feel they are in a social exchange relationship, which we know is positive for job performance and the desire to do a good job.
If you have a bad leader, this can help create a negative perception of the organisation. The leader is often seen as a representative of the whole, and the feelings you have towards your leader can develop into feelings about the organisation.
If you manage to build an emotional, long-term relationship, employees will stay in the organisation because they want to, not because they have to.
Pay is not one of the most important factors when it comes to turnover, but pay and the distribution of benefits can be demotivating if they are perceived as unfair. The assessments we make when handing out benefits are often subjective, even though in many cases we believe we are being objective. One tip is to consider whether the decision you are making is good enough to bear the light of day. If the answer is no, it may be something you should reconsider.
Many companies take the view that turnover and replacement are healthy. New competence can increase learning and innovation, and nobody wants to get stuck in old, fixed patterns. But losing employees costs companies dearly, both in time and resources. Moreover, this claim has no basis. In fact, a link has been shown between seniority and performance: the longer an employee has worked in the organisation, the better they perform. Internal recruitment will therefore often pay off. You get an employee who knows the company's culture, norms and values, while giving that employee new development opportunities and motivation.
If you are going to recruit new employees, the onboarding process is absolutely decisive for whether you manage to retain them. It is especially the first 90 days that determine whether they become firmly attached to the organisation. Here it is important to clarify expectations along the way and show the employee that they have made the right choice. Systematic follow-up through dialogue will strengthen the employee-leader relationship and also help clarify expectations of both the work and the role.
Employee appraisals that focus on well-being, motivation and career opportunities can increase affective organisational commitment. If the employer wants and helps employees to develop, they may feel organisational support and that the employer cares about them. This can help create a long-term relationship in which employees feel that their work is valued. They will experience the relationship as characterised by trust and care, and to a greater extent as one based on “give and take”.
It is also fine to map turnover intention in the employee appraisal, for example through questions about pride or the sense of belonging. This can give the leader a heads-up that something needs to be dealt with before it is too late.
Exit interviews will also be an important tool for gaining insight into why turnover occurs. It is often in this interview that you can get to the heart of the matter and learn from the process. Feel free to use a survey beforehand so that both leader and employee come prepared. Over time, you can also identify trends, making it easier to put targeted measures in place to prevent unwanted turnover.
In short, talk to your employees and listen to their needs and wishes. With more working from home, employees' affective organisational commitment is under threat, and it is more important than ever to focus on retaining the best people.
Written by: Malin Elisabet Lilletvedt, organisational adviser at Motivati.