We are all well aware that employee turnover is a huge problem for a company, but not fully aware of its effects. Turnover costs a lot in terms of money, with relevant research showing that the exact cost can vary between 16% and 213% of lost employee’s salary. On the other side, employees are actively searching for other opportunities, with 51% of employees considering a new job, as a Gallup’s study shows. Furthermore, recruiting and onboarding new employees is a tiring and time-consuming process, during which you have gaps in your staff which can seriously affect your efficiency.
What can you do to reduce turnover and keep your top talent in your company? Here are a few tips to get you started.
The most common reason for your employees’ turnover is their displeasure with the salary or the lack of some other benefits which are available to their colleagues in other companies. The salary you offer them should be in the vicinity of an average salary for similar jobs in your area and industry. Otherwise, your workforce will leave you for those who offer more. Keep in mind they have different bills to pay and would like to make the most of their free time too, so every significant difference in salary matters as it gives them more opportunity to enjoy life.
Besides their regular paycheck, your employees want some other perks too, at least those which are standard for your industry. They value health insurance and paid time off work, as well as disability insurance. Consider establishing a comprehensive benefits package your company can afford and your employees will highly appreciate.
To reduce the dissatisfaction of your employees and slash the abandonment rate, you need to do your best to improve communication in the workplace and enable regular feedback between your management and employees. You can organize half-yearly interviews with your workers and give them a chance to get genuine feedback on their performance in the company, as well as allow them to provide their feedback too. Put stress on the skills and traits you find most valuable and discuss the ways to improve them and learn the additional ones. Ask your employees about what bothers them in the workplace and how your company could improve these conditions. And in order to prevent turnover, do your best to consider their suggestions and implement some of them.
Your risk of a high turnover rate will be reduced if you show your employees appreciation for the job well done and for their contribution to the success of your company. The perfect way to make a practice out if it is by setting goals and creating an action plan for your staff recognition, which will include desirable behaviors, actions, and accomplishments which will make your company more efficient. Your recognition plan needs to be fair, transparent and consistent so that it can be achieved by any employee who performs well. Reward your employees for their above-average performance in a way they would prefer, by linking their salary to performance, offering them a promotion, or any other way that will motivate them.
You want your business to grow, but to be able to do so, your employees should grow professionally and personally too. Some stats even show that 72% of candidates are motivated by the opportunity to advance in their carers. Make such an opportunity available in your workplace so you wouldn’t lose proactive and motivated employees. Encourage your employees to continue the development of their skills by providing internal training, or supporting them in attending courses or seminars. To your loyal employees, you can even offer a tuition program if the skill they want to polish is needed for the position they are in or can benefit your company.
Reducing your employee turnover rate starts with their recruitment. Surely, you will look for those who have the knowledge and skills required, and value extra those with valuable experience in the area. Still, if your candidates don’t fit into your business culture, they will most likely be dissatisfied and unhappy. Such employees will have a problem in being efficient and will flee when the first change occurs.
Adding a set of behavioral questions to your hiring interviews would make it easier for you to spot the ones who would have trouble fitting in. Ask about how they’ve handled a conflict on their previous job, for example, or how they communicate to a person they don’t like and eliminate those who are not befitting.
There are many great advantages of hiring disabled workers and you shouldn’t hesitate to employ a candidate with a disability. People with disabilities will make your workplace more diverse and inclusive, thus more engaging for your other employees. These employees will have a perfect understanding for your clients with a disability and will provide them with just the right support. Also, research studies on employees with disability show their absenteeism and turnover rates are much lower, so you might benefit from loyal workers who will most likely stay if they feel appreciated.
Your company can resolve your turnover issue more easily if an HR specialist is around. HR specialists are more common in companies with more than 100 employees, but even smaller companies can have great benefits if their budget allows such an expense. These high-skilled professionals can conduct performance reviewing process, assist with employees’ complaints, and recommend new initiatives and programs, both on your employees’ and your own satisfaction.
In order to retain your employees, try to start from the very roots of your employees’ dissatisfaction, and make the necessary changes. Create an inclusive and encouraging atmosphere, appreciate your every employee, and let them grow together with your company.