Employee turnover is a very costly affair. Accumulated costs include staff time, recruitment and training. Studies by the American Management Association in 2010 reported that costs associated with employee turnover range from 25% to 250% of the annual salary of the exiting employee. In this tough economic time, decreasing the employee turnover rate should be seen as a strategy for reducing costs.

In Saint Lucia, the workforce is distributed primarily in the service sector. Hence, there is a heavy reliance on the human resource more than any other resource. However, be it the service or the manufacturing sector, the human resource is the most valuable. Even in the case of a fully automated plant, someone will still be required to oversee the operations. This very valuable resource, however, is also the most unpredictable. Managing this resource demands special attention if the employee turnover rate is to be reduced.

It calls for human resource management which motivates and fosters commitment of employees to the organisation. Achieving this requires a collaborative effort between the department/division manger and the human resource manager (if applicable). The role of the human resource manger is one that should be advisory and supportive to the department managers who directly supervise the employees.

So for mangers attempting to reduce their employee turnover rate, do you:

• accept employees as unique individuals with their own personality, skills, personal goals and expectations?
• aim to develop employees through work rather than just do work through them?
• ensure employees are aware of their contribution to the goals and objectives of the company?
• create a working environment that is motivating?
• request feedback from employees?
• engender teamwork among employees?
• recognise the contributions of employees?

As these conditions are met, employees feel valued and appreciated and in return develop a greater commitment to the company. This commitment is what translates into reduce employee turnover.