High Employee Turnover

High Employee Turnover

Step 1: What problem are you experiencing within the organization, and how is this problem affecting (the performance of) your organization?

The organization is struggling with high employee turnover. More employees are leaving, resulting in understaffing, increased workload for remaining employees, and a loss of knowledge and experience. Customers experience delays and reduced quality, and the organization develops a poor reputation as an employer.

Note - Step 1 refers to the consequences of risks that have materialized. Examples include: Cash flow problems - Lower revenue - Higher costs - Inadequate staffing - Inventory issues - Low customer satisfaction - Customer complaints - Customer attrition.

Step 2: Where in the organization or process are the problems occurring, and who is directly impacted?

The issue impacts HR, operations, and customer contact:

• HR: Struggles to replace departing employees on time and attract new talent.
• Operations: Faces lower productivity due to understaffing and insufficient experience among new hires.
• Customer Contact: Notices a decline in service quality, leading to customer complaints.

Note - For step 2 consider responsibility areas such as finance, marketing, sales, IT, HR, procurement, core processes, investments, quality, compliance, and care.

Step 3: What exactly is happening within or to the organization that is causing the problem?

The organization is experiencing low employee satisfaction and weak employer engagement. Employees feel undervalued, see limited opportunities for growth, and complain about high workloads.

Note - Step 3 refers to risks such as: Delayed customer payments affecting timely bill settlements - Logistical process disruptions - Competitors acquiring customers - Inadequate staffing.

Step 4: Is the root cause of the risk internal or external to the organization?

The root cause is primarily internal:

• Lack of clear career paths and development opportunities.
• Excessive workloads without adequate support.
• Poor communication and a weak company culture.

External factors also play a role, such as:

• A tight labor market where competitors offer more attractive benefits.

Step 5: What is the underlying cause of the risk?

The underlying cause is the absence of a strategic HR plan and insufficient focus on employee satisfaction. The organization does not invest structurally in employee development and retention.

Note - Examples of step 5 include: Sales teams selling products/services that cannot be delivered to customers, leading to dissatisfaction and delayed payments - Outdated IT systems - Failing to meet customer commitments - Negative word-of-mouth - Increased competition for attracting and retaining talent.

Solutions via ICR

Solution Path 1: Immediate Action

An emergency response:

• Conduct exit interviews with departing employees to identify immediate improvement areas.
• Offer temporary bonuses or benefits to retain current employees.
• Bring in external support, such as temporary workers, to alleviate understaffing.

Solution Path 2: Sustainable Solution

A long-term approach:

• Develop a strategic HR plan within the ICR software, focused on employee satisfaction and talent retention.
• Conduct regular employee satisfaction surveys and use the results to adjust policies.
• Invest in training, education, and career development opportunities.
• Build a strong company culture with clear values and recognition for performance.
• Implement a (Key) Performance Inidicators dashboard within ICR to monitor employee satisfaction, turnover rates, and workload.

What Are the Benefits?

Immediate Action

Turnover is quickly slowed, and the immediate effects of understaffing are mitigated.

Sustainable Solution

An organization with satisfied and engaged employees, a strong employer brand, and improved productivity and customer satisfaction.

Note

No action means that risk events will continue to occur, and therefore the resulting problems will continue to exist within the organization.

Visit 'Welcome to ICR Troubleshooting' to download our free e-book.

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