How to Reduce Employee Turnover

Are you experiencing high turnover rates? Don’t be ashamed, all businesses will experience turnover at some point in time. Here’s 7 tips that will help reduce employee turnover and help you save time and money during your next hiring process.

Impact of High Turnover

Having a high rate of turnover may impact more parts of your organization than you think. Here’s some of the biggest impacts:

• Lost Revenue
• Decreased Morale
• Difficulty Recruiting
• Decreased Production

7 Tips to Reduce Employee Turnover

Offer Competitive Pay and Benefits

If you fail to keep up with the competitive pay and benefits offered in today’s job market, employees will leave to find better opportunities. Your employees want to be compensated fairly for the work they contribute. If you fail to pay your employees well, they will find a business who can. To keep up with the changing demands of pay and benefits in the job market, remember to conduct research regularly regarding the pay and benefits for the positions at your company. You should pay employees according to your location and surrounding job market’s pay expectations.

Invest in A Better Onboarding Experience

How much you invest into the onboarding process is shown in your company’s turnover rate. When you nurture the onboarding process, you create an emotional bond between the new hire and the company. It’s most likely that the new hire is coming from another organization to join your company, thus expecting the new opportunity to be more fulfilling than the last. With a strategized onboarding process, you can create a feeling of fulfilment from the start. First impressions are incredibly important for a new hire, be sure to give them all the tools and resources they need to succeed at their new job.

Recognize and Reward Employees

If you’re having trouble keeping employees, showing more appreciation for your team can have a positive effect on your turnover rate. When you regularly recognize and reward employees, they feel valued for their work. Employees want to feel appreciated in more than just monetary rewards; you should regularly remind them that they’re doing a good job and reward them through other incentives on top of giving out bonuses. When you fail to recognize your employees, they lose motivation in their work and often look for other opportunities in the job market.

Offer Opportunities for Advancement

Employees are more aligned to stay with a company when they have opportunities to advance. Employees feels like they have no choice but to look for another job when they don’t have any more opportunities at your company. You can reduce turnover by creating a clear path for employees that shows them they have room for advancement in their career. You can take it one step further by creating an open-door policy to allow employees to freely discuss with upper management about opportunities for advancement in their careers in order to reduce turnover.

Allow Flexible Work Schedules

In today’s market, it’s common for employers to allow flexible work schedules. The popularity of working remotely has demanded jobs to be more flexible than any other time in history. Employees are likely to stay with a company that offers an adaptable work schedule. If your company is strict about schedules, employees will leave for organizations that are more adaptive to their flexibility needs. To reduce turnover rates, think about your employees needs and where you should add flexibility into your business.

Create Learning and Development Programs

When you invest into developing your employees, they are more likely to stay with your organization. By offering programs to develop and educate, you are directly connecting with your team through their values of self-improvement. Offering learning programs gives employees incentives to stay with your company while also allowing them to explore areas that interest them at little to no cost. Having sufficient learning and development programs for your staff helps to improve employee morale and reduce turnover.

Analyze Existing Turnover

You keep experiencing high turnover, but do you know the real cause? Instead of blaming different factors, do the research to find out directly why employees are leaving your organization. As employees leave, give them an interview as to why they decided to resign. The more you understand what is internally driving employees to leave, the better you can direct the remedy to reduce your turnover rate.