Everything You Need to Know About Turnover Costs and Managing the First Year

As the company grows, your responsibilities and tasks also increase, pushing you to hire people to keep up with the demands of the target audience. You get to create amazing teams and maybe end up growing fond of the people under your care. However, not all employees will stay with you forever, as most will soon take their careers to new places and venture into more opportunities; the rest who stayed as long as they can grow too old to work and eventually leave.

Employee turnover is a fact of life for all businesses, including security companies. The rate of employees leaving is indicative of how well they are treated in the company while simultaneously giving a glimpse of workers’ attitudes towards career and employment. 

Employee turnover in the security industry
Security guard companies have one of the highest employee turnover rates in the US alone. Long work shifts common in the security industry coupled with the relatively low compensation is perhaps the culprit. Right at home, in Australia, the quarterly turnover rate for security personnel is 3.5% as of 2020. This is significantly low in comparison to the country’s 9.5% average in the same year. Still, the fact remains that a noticeable turnover in the security industry is extant, and it is especially apparent in large security companies like Wilson. 

The cost of employee turnover
The thing about employee turnover is that the effect goes beyond having one less security guard on duty or an empty office desk. It is also a lot more than the comparatively measly separation fee that will come out of the company’s coffers. The company will have to spend money on finding, hiring, and training replacements, and considerable time and effort will go into simply letting go of an employee that needs to leave. 

Aside from the financial consequences, there are also intangible costs to an employee’s untimely exit. That particular worker used to contribute valuable skills, talent, and knowledge to the company, and they will take all of these with them as they exit the office one last time. As a result, there will be a decrease in the company’s overall performance and expertise in security work, while administrative costs go up to make up for the lost talent. 

How can Australian security companies manage turnover costs?
The financial, material, and performance costs of employee turnover may be painful but manageable, at the very least. In this regard, we should note that most turnovers occur during the company’s first year, so this period is essential in managing turnover costs. During this period, the company should keep track of employee performance, understanding their needs and the difficulties that get in their way. 

Doing so will yield information that will be valuable in creating a sound employee retention strategy that addresses all known issues. Solving the work-related problems your security personnel is facing is a great way to help them do better, complain less, and be more satisfied with their job. As we all know, happy and well-compensated employees are more than willing to stay in their company, and these folks are certainly a worthwhile investment.

Employee turnovers are difficult to forecast and are additional work to a manager’s plate. To improve employee retention, supervisors can also consider organising team building activities to keep the team engaged. This will help promote a positive work culture and will reduce the employee turnover rate.

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