When economists and politicians talk about jobs and the economy, the debate is almost always about rates of employment. But behind statistics related to falling unemployment and job creation numbers are a whole range of more complicated realities that are sometimes of even greater concern to business owners. Increasingly, rate of employee turnover is one of them.
As Forbes reported earlier this year, employee turnover is at a ten-year high. While this speaks to a healthy job market in which workers are confident in their abilities to find better work, it also represents a huge problem for the industries that rely on their labour.
Why is Employee Turnover Such a Problem?
Every time a company hires a new employee, they need to make a considerable investment in screening, training, and sometimes even new equipment — not to mention the time it takes to interview and hire. This means that companies that are constantly replacing workers end up diverting a significant number of resources away from their primary business just to keep their organization properly staffed.
One of the best things a company that wants to cut down on its expenses and streamline operations can do is simply improve its employee retention. And one of the best ways to do this is by going to the root of the problem and using better intranet tools to ensure that employees have the resources they need to thrive.
The Reasons Why Employees Leave And How Intranet Can Help
Studies show that there are three main reasons why people leave their jobs: personal issues with co-workers or management, a lack of stimulation, and a sense of disconnection or incompetence. While these categories can be broken down even further, almost all employee turnover falls into one of these areas. One of the reasons intranet is such a valuable retention tool is because it works on all three fronts.
Intranet helps companies improve workplace culture by giving employees more channels for communicating with co-workers and management. It also provides a host of different tools to allow workers to track their own progress and take on new workplace challenges. And in those cases where employees feel that they aren’t making a real contribution to their workplace, intranet can help workers feel less overwhelmed.
For example, employee retention is especially difficult in healthcare and finance because these are industries where workers often face challenging conditions and a steep learning curve. In these contexts, employee turnover is often a response to feeling overwhelmed and unable to keep up in a fast-paced and demanding workplace.
But a good intranet website provides workers with resources and tools to help them map workflow, access the data and information they need to discharge their duties, and know who they should go to for backup when they need help (if a business has trouble with any of these issues, it should visit Intranet Connections to learn more about the features and tools that modern intranet makes available).
A recent report noted that the costs of replacing a worker can come to anywhere from six to nine months worth of that employee’s salary — a huge expense for any organization. But investing in tools like intranet that improve employee retention won’t just help businesses improve their bottom line; by creating a more collegial and supportive workplace culture, they will also be making the business as a whole more effective and successful.