Tre personer ved Veksthuset bord med laptop.

How to reduce turnover

The costs of turnover are calculated at approximately 1.5 times a year's work, and if the turnover is high, the results are significantly affected in a negative direction.

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With an unemployment rate of approx. 2 % in 2023, there is a fierce battle for the workforce, and it is very important to keep those you have. If you also take into account that 1 in 4 employees are considering changing jobs, there is little doubt that awareness of what makes employees happy in a job is critical information for a manager.

Good working enviroment

Having good colleagues and being part of a good working environment is still the most important thing for Norwegian employees, according to a recent survey carried out by Simployer. It is not surprising considering how much time one spends at the workplace.

In a leadership role, there is an expectation from employees that a working environment has been established that provides psychological security. Psychological safety is about being confident in colleagues and managers. There are two areas in particular that are improving.

Firstly, there is a greater likelihood that one will dare to come up with suggestions for improvements. If you have a culture where you don't risk bullying, or harassment by thinking differently, it is more likely that you will come up with ideas for solutions, which may turn out to be more profitable than how you operate today.

It is also safer to disagree if you have a good psychosocial working environment. A culture of handling disagreements in a respectful way makes it easier for healthy discussions to occur, which in turn is a foundation for development.

The other main effect of a good psychosocial working environment is that it is safer to take up challenges. It can be anything from challenges in private life, which affect everyday work, to challenges at work with workload, collaboration or the like.

As an example, 1 in 4 employees consider quitting due to stress and 8 in 10 experience a high level of stress at work. Is it socially accepted at your workplace to address challenges with high work pressure? If the answer is no, it is natural to assume that someone with you is considering quitting due to stress.

Tre individer som står nær hverandre ved Veksthuset.

Balance between work and leisure

Furthermore, the balance between work and leisure is something that is highly valued. In this connection, many people are concerned about flexibility and the opportunity to influence the place and time of work themselves.

This is a trend that became serious in connection with changed working habits during covid. This is particularly important for younger workers. An important point in this regard is also which culture one has in relation to accessibility. In knowledge-based companies in particular, it can become a culture for people to be on at all times, and to answer e-mails outside of core working hours as well.

Has your company established a practice for when you can contact each other and what you can expect from a response outside of on-site hours, at weekends, or during holidays? Balance between work and free time is not only about flexibility, but also about protecting free time.

The trend of quiet quitting, where one only performs a minimum of what is expected in the role, is connected to this. It is a response to the fact that the work pressure and the expectation to constantly think about work and to perform to the maximum have gone too far.

Recognition

The third element employees say is important for being happy at work is recognition for the work you do. If you want to gain recognition, it is important to know what is expected and what the role of the employee is.

Is everyone aware of what value their work adds to the business and the business's customers? It is a managerial responsibility. Is there a culture of praising each other's good achievements, or is it pointed elbows and "me first"?

Own development

Employees in today's labor market are also more concerned with their own development than in the past. What are my further career opportunities in the company I work for? Is there room for more responsibility and increased competence?

If the employee sees a possible way to develop in the job, there is probably a greater likelihood of staying. Own development is also linked to influence. Employeeship, where the employee sees real opportunities for influence in the workplace, is something that is valued by today's employees and for you as a manager, leads to a greater degree of commitment from the employees.

Terms

A competitive salary level and access to benefits are still important for enjoying the job, but it is more considered a prerequisite and hygiene factor than before. Employers are expected to keep abreast of the wage level in the market.

Do you have any questions about this?
Contact general manager Sigmund Høye

Contact

En dresskledd mann smiler til kamera på Veksthuset.

Managing Director / Partner

+47 91 84 29 26

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