6 Tips to Reduce Employee Turnover
What are the tips to reduce employee turnover?
- Hire the right employees in the first place
- Keep up with competitive salaries and benefits
- Recognize and reward
- Offer flexibility and work-life balance
- Provide opportunities to grow
- Conduct exit interviews
Attracting and retaining employees is one of the major problems businesses are facing today. Today, employee turnover is a headache for many business owners because it hampers organizational productivity and increases costs.
Whether you own a startup or a big company, you would find value in these tips to reduce employee turnover.
What Is Employee Turnover?
Before knowing expert tips to reduce employee turnover, it’s important to first know what employee turnover means. Employee turnover refers to the measure of how frequently employees leave a company or organization. It can be measured monthly, quarterly, or annually.
In general, employee turnover covers both voluntary and involuntary turnovers. Simply put, it counts employees who left the company for any reason.
Voluntary reasons include pursuing an enticing job offer or higher studies, taking care of their health, or retiring. Involuntary reasons include those who the company terminates due to unsatisfactory performance, behavior offenses, absenteeism, or major layoffs.
What qualifies as a healthy turnover rate will vary greatly, depending on the industry.
Why Is Reducing Employee Turnover Important?
Reducing employee turnover is important because it impacts the company’s profitability. Having enough employees with the right skills is crucial for achieving day-to-day objectives.
In addition, finding the right employee is more challenging and costly than ever. You have to compete with other companies looking for highly-skilled talent by offering better salary grades and incentives. Once you find the right applicant, getting them to sign the contract can be time-consuming and costly.
Fortunately, employers can reduce employee turnover in various ways, such as competitive salaries and offering work-life balance. Read on to learn more!
Hire the right employees in the first place
The best way to ensure you reduce employee turnover is to make sure you are hiring the right employees in the first place. This is why some of the blame for employee turnover falls on recruiters.
According to Jobvite, about a third of workers leave a job in the first 90 days because the job is not what they expected. That’s why recruiters must define the role and job description clearly. Then, be sure to check if the candidate is fit for how the business actually operates and its culture.
The right worker, in the right position, and on the right bus is a key to reducing employee turnover. But at the same time, don’t neglect to hire workers with the innate talent to work in various positions. This way, you would have the best match available when a worker leaves unexpectedly.
Keep up with competitive salaries and benefits
There’s no doubt that salary and benefits are the main drivers for applicants to take jobs and show up to work each day. These are also among the top reasons why workers switch jobs. Therefore, it doesn’t come as a surprise that competitive salaries and benefits packages can reduce employee turnover.
Companies should start by offering a competitive starting salary to attract talent. Then, they should also monitor what other companies pay for similar job roles. This is especially important if you have hard-to-fill jobs. Companies should expect to pay more for in-demand skills.
Be sure that you are paying employees a competitive salary and offering them a competitive benefits package. If not, a competitor just might offer a raise that keeps up with the employee’s actual worth.
Recognize and reward
Recognizing and rewarding is an easy employee turnover reduction strategy. Simply show your employees that they are valued and appreciated. Offer real-time recognition that celebrates their efforts. A simple thank you — either spoken or written — can go a long way. The support of a tangible reward can also reward your company with their loyalty. You might want to launch peer-to-peer recognition programs to make this happen.
Offer flexibility and work-life balance
Employers should increasingly prioritize work-life balance because, without it, burnout is bound to happen and can leave employees looking for another company.
Flexible scheduling and work-from-home options are effective ways to help workers achieve improved work-life balance and reduce employee turnover. This can include flextime or rotating days working from the office.
To ensure the work-life balance is well integrated into your culture, it should be a company-wide priority. It should never breed resentment from bosses, nor should it induce feelings of guilt whenever employees take time off.
One of the top reasons why employees leave a company is because of the lack of career growth. Companies should make career growth a priority via promotions or internal recruiting. Employers should not penalize workers who seek roles within other teams in the company. If your existing employees feel they are growing, they would be more motivated to stick around.
Conduct exit interviews
It’s hard to change what you are not measuring. That’s why it’s important to conduct exit interviews when trying to reduce employee turnover.
Learn why people leave. There are a multitude of reasons people leave a job. Some are enticed by other bigger salary offers, while others may feel there is no respect demonstrated in the workplace. The reasons are varied. Knowing these reasons and doing something about them can be worthwhile with higher employee retention rates.
Hopefully, these tips to reduce employee turnover here can help you out. How you manage and keep your best employees is fundamental to business success. Build a culture that keeps your employee turnover rate low and your business will be productive for years to come.
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