3 steps to avoid fluctuation

April 28, 2022

Employee turnover is one of the biggest HR challenges in 2022. Strengthen your employee retention and learn more about the main causes of turnover. We give you 3 steps to take action.

Employee turnover is one of the biggest challenges for HR in 2022. It is cost-intensive for companies and has a negative impact on the corporate culture. A comprehensive root cause analysis is therefore crucial in order to take action and be able to act in the future. Most of the time, however, the reasons are only sought in the management, ignoring a number of other elements.

The following factors play a significant role in employee retention and are causes of potential turnover: employee engagement, organisational commitment and psychological safety.

Employee engagement - understanding employees.  

Employee engagement is understood as an interplay of cognitive, emotional and behavioural factors. influencing factors such as leadership behaviour, the role of the individual and personal development are crucial.  

"Am I supported by my team and my employer? Do I feel part of my team? What is my role in the team? Where are my responsibilities?"

The purpose of the job is also important:

"Does my role align with my values and personal goals?"

Finally, work-life balance and acting on one's own responsibility play a relevant and important role and contribute to a high level of commitment.  

Take the time to understand your employees and thereby increase motivation and commitment in your company.

Organisational commitment - retaining employees.  

Organisational commitment consists of several aspects that together influence employees' commitment to an organisation:  

  • Emotional commitment (attachment to the organisation): "I can fully identify with the values and vision of my company."
  • Affective commitment (commitment in the organisation): "I like to contribute not only to my daily tasks but also to cross-positional activities."
  • Normative commitment (sense of commitment to the organisation): "I see myself as an important member and part of the organisation and understand my responsibility as crucial to the success of my team and organisation. I am aware of my responsibilities and accept them."
  • Continuous commitment (cost awareness when leaving the organisation): "I know that I am very well taken care of in the company and I am aware of not finding an equivalent job when leaving the organisation."

Again, influencing factors such as personal development, leadership skills, the role in the company, the role of the employer and the social environment are crucial. Personal development of new skills and career opportunities are of enormous importance here.  

"Do I see opportunities for personal development?"

Essential topics such as regular feedback on performance and quality of work should also not be underestimated here. This also promotes continuous and sustainable development. It is important that managers are accessible and available to identify possible challenges of employees and to support them in finding solutions.

"Do I have the opportunity to talk to my manager about my problems? Are my supervisors empathetic, open and transparent when facing challenges?"

It is clear that the position of the employer has a direct influence on the commitment of the employees. In addition to salary, benefits and recognition, issues such as the company's mission and vision play a role here. Open and clear communication by the management provides the basis for trust.  

"As an employee, can I identify with the company's values and goals? Were these communicated openly and clearly?"

Take action to ensure the retention of your employees at different levels. This is how you create trust and loyalty between your employees and your organisation.

Psychological safety - supporting employees.

Here, the social environment plays a significant role. In particular, trust in colleagues and managers, social support and collaboration are considered.

An essential component are the four dimensions of psychological safety:

  • Inclusion-Safety encompasses the basic human need of belonging and integration into the company (sense of belonging).
  • Learner-Safety evaluates the possibility to feel safe in the learning process and in making mistakes in order to grow from them.
  • Contributor safety looks at the basic need to make a difference and to realise oneself, e.g. by contributing new ideas.
  • Challenger-Safety puts the opportunity to experiment in the foreground. Methods, processes and approaches are questioned and new ideas are tested.
Make sure your employees feel safe and are always heard. Encourage your employees to try out new methods and ways of working.

Three steps to avoid employee turnover.

To prevent fluctuation, the first step is to understand it. What are the causes and how can I take action early enough? As with other challenges, it is important to address the root cause of the problem. We give you the following three steps to take along the way:

Measure the status quo: How high is the fluctuation? Which areas in the company does it affect and how? What are the main causes and influencing factors?
Determine concrete actions: What initiatives can be taken to retain employees in the long term?  
Evaluate the impact of the measures: What is the impact of the initiatives? Has the desired objective been achieved?

Only by continuously measuring and reviewing the status quo, it is possible to react quickly and in a targeted manner to critical changes in the company. This not only prevents fluctuation, but also identifies other issues that are critical to the company. Basically, there is no "one-size-fits-all" solution. Causes and influencing factors are always dependent on the location, the department and the company itself. Therefore, an individual approach is crucial.

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