Imagine the 2022 FIFA World Cup without Lionel Messi!
I don’t think Argentina would have had the same success without their GOAT!
Drawing a parallel from the sports world, the departure of valuable and skilled employees inflicts a significant loss on organizations.
American companies suffered an annual loss of $223 billion due to employee turnover caused by poor company culture. That’s the loss you incur when you lose some employee, but imagine the loss when your most valuable employee departs!
Losing valuable employees (termed as dysfunctional turnover) not only translates to losing talent and expertise but also disrupts company dynamics on many levels, including a decline in overall employee morale and a negative brand reputation.
In this blog, we’ll explain the nuances of dysfunctional turnover and explore strategies to mitigate its risks.
Employee turnover refers to the rate at which employees leave a company during a specific period and are replaced by new hires. Given the cost of finding, onboarding, and training new employees, it is best to minimize employee turnover.
On the other hand, dysfunctional turnover refers to losing your top-performing employees at a rate higher than the low-performers. It is termed so because of its effect on the capital.
Imagine a top sales representative who always hits targets and brings in revenue for the company. However, the rep feels their compensation is lower than industry standards. Feeling undervalued and underpaid, they decide to explore opportunities elsewhere, resulting in the loss of a valuable asset for the company.
Lack of fair and competitive pay is one of the primary reasons for dysfunctional turnover.
For employees to stay satisfied with their job, they need a meaningful connection. It includes your values, business goals, and customer service. A strong relationship among your employees is also key to their experience at work.
Neglecting employee engagement results in high performers feeling disconnected and compelled to leave.
Growth and development are among employees' top priorities. Studies found that 94% of employees would stay longer at a company if they got better career advancement or skill development opportunities. In other words, high performers never want to be held down by a role.
Other causes of dysfunctional turnover include poor management, a toxic workplace environment, misaligned company values, burnout due to overworking, and more.
These costs are directly related to the time and resources spent in replacing an employee. Here are the main direct costs involved:
It can have an equal, if not larger, impact on your company. Here are the top indirect costs:
Infeedo, the leading employee experience platform, offers a powerful solution, Amber. Amber, the employee experience conversational bot, harnesses the power of AI and predictive analytics to manage and minimize dysfunctional turnover effectively.
Let’s explore how it does it-
Surveys and feedback are structured ways to continuously listen to, measure and improve employee engagement. Pulse surveys, for instance, help you gather real-time insights into your organization’s pulse.
Anand Mathur, Group Head, HR, IIFL, says, “For me engagement meant interaction with an individual at a one-on-one level, and that’s where Amber as a product resonated with me.”
You can put the entire approach in auto-pilot mode by scheduling periodic surveys and automating repetitive tasks with Infeedo. You can leverage the platform to conduct onboarding, pulse, exit, eNPS, and more surveys.
Attrition prediction enables organizations to reduce turnover rates, improve employee retention, and save on backfilling costs by identifying disengaged employees at a higher risk of attrition. By predicting attrition in real-time using Amber's AI and predictive analytics, you can proactively address disengagement drivers within their workforce.
It helps uncover the root causes of disengagement and organizational gaps, such as culture, managers, company policies, leadership, and mission.
By linking performance and engagement, you can analyze what drives success for top performers and address shortcomings. With Amber's AI-powered insights, you can scale these improvements across the workforce, building a high-performing culture. Additionally, Amber enables proactive retention efforts through turnover alerts for top talent and sentiment analysis to pinpoint reasons for disengagement.
Bhavana Kandari, VP - HR, Evalueserve, shares, “We wanted something that would give us real-time employee sentiments. And Amber really fit that criteria very well. With the help of Amber we know of the 4000 people which are the top 100 cases we should really deep dive into.”
By taking targeted actions based on these analytics, you can effectively retain valuable employees and create a more stable and productive workforce.
Infeedo’s people science team analyzes engagement scores, engagement drivers, response rates, people-to-meet ratios, and average resolution times to provide actionable insights. And each benchmark tells a story, highlighting the strengths and areas of opportunity within your culture.
It gives you an understanding of how your organization compares to thriving workplaces. You can leverage it to develop targeted action plans and enhance employee engagement, reduce turnover, and foster a positive work environment.
Minimize dysfunctional turnover with a new hire plan that keeps employee experience at the center.
Amber's exit interview simplifies decoding the real reasons behind employee exits. Identifying any shortcomings or miscommunications during training and setting role expectations can enhance your recruiting process and improve retention from the get-go.
With Amber's insights, you can create a more cohesive workforce, saving time and resources in the long run.
Prevention is better than cure! Keeping a check on keyword alerts that track employee trends and patterns helps minimize dysfunctional turnover and nip it in the bud. With Amber, you can effortlessly track important topics that matter to you without manually browsing through survey responses.
Employees are the key to your long-term growth and success!
Organizations can limit dysfunctional turnover and build resilience with AI-enabled predictive models, retention-focused surveys, employee engagement strategies, and healthy company culture.
Amber combs through millions of data points to uncover valuable insights and identify areas where you need improvement. Our people science team then helps you create action plans based on learnings from thriving workplaces. Reach out to the all-in-one employee engagement platform to unlock the potential of your organization's culture and drive success.