Is your business struggling with employee turnover and you aren't sure what to do? Maybe you have been asked to tackle employee turnover and need some guidance? Whatever brought you here today, we have the answers for you.
Our guide is here today to guide you through employee turnover, showing you how you can reduce employee turnover and improve job satisfaction and company culture within your department or company.
Why Is Staff Turnover Rate Important?
Staff turnover rate plays an important role in your business, whether you have a high or low turnover rate. Businesses with a low turnover rate usually have better employer reputations and will rank highly as the best places to work. Keeping employees in the business can improve productivity, too, as there is less time spent on training new recruits, ensuring work continues as normal.
A high turnover rate can negatively impact your business, costing you money whenever you need to recruit new employees. It can also impact your ability to retain current employees, as they often need to take on former colleagues' workloads during recruitment. If you lose top performers, you are also losing their knowledge and experience, which can impact the quality of your products and services. This can impact your company's reputation, causing clients to leave or deter others from wanting to work with you. It is important that you reduce employee turnover to help maintain your business's reputation and usual high standards.
What Causes A High Staff Turnover?
A high staff turnover can be caused by negative employee experiences, low salaries, or better offers from other companies. Some turnover is expected, like when employees retire or relocate, but it is the negative experiences that can cause large numbers of staff to leave or for there to be a revolving door in some departments and roles. Negative employee experience is an umbrella term that can be caused by a range of things that some of you might not be aware of in your company. You will need to look closely at your business to see if any of the following are happening:
Burnout
Monotonous work
Fear of layoffs
Inadequate recognition
Poor work-life balance
Lack of career development opportunities
Unsupportive or ineffective management
Insufficient benefits or pay
Bad company culture
By determining the likely cause of your employee turnover, you can effectively implement changes to help reduce employee turnover and improve the happiness and job satisfaction of your current employees.
7 Tips To Reduce High Turnover Of Staff
No matter the reason for your high turnover, there are several things you can do to improve turnover and create job satisfaction for your employees. We have listed seven tips that will help you reduce high turnover, help all employees feel valued and supported, and encourage them to remain in your business. Let's dive in.
Recruit The Right Talent
First, spend some time considering your hiring process. The main goal of any hiring process is to be thoughtful and selective. Employees can often leave a company quickly if they are not told the true nature of the role during an interview or if the role changes between the interview and their first few days.
While you want to attract talent to your company, you don't want to be dishonest about the culture or the role's requirements. Use the hiring process to set clear expectations about the role helps you attract the right person for the role. But to do this, you and hiring managers need to be clear on the skills needed for the role. You want someone who has the skills for the role but also to help with the company's goals.
In many cases, you might have the perfect candidate in your company already. We recommend interviewing internal candidates alongside external candidates. Not only does it allow you to promote internal candidates, but it also helps external candidates learn more about the company culture, helping you to find the right person for the role. Some businesses might require the help of headhunters to help them attract the right person for the role.
Reward And Recognise Employees
A fantastic way to reduce turnover is to recognise and reward employees. Not only is this an excellent way to incentivise your team and boost morale, but it helps every employee feel recognised and valued for their hard work. While you might recognise hard work at end-of-year reviews or other performance reviews, frequent recognitions and rewards will go a long way to create a culture of recognition.
This does not need to be a formal recognition but the moment or peer-to-peer acknowledgment. A reward scheme can also be a great way to improve company culture, rewarding employees for their hard work, hitting targets, or going above and beyond their role. These don't necessarily need to be monetary rewards, but additional leave, free lunch, or other rewards are an excellent way to improve employee satisfaction and reduce turnover. Employees want to feel recognised for their hard work and will often leave for other companies if they are not recognised in their current role.
Create Career Growth
Many employees want to progress in their careers and will leave for other companies if they do not see career growth in their current roles. You can avoid this by creating a clear career path for your employees to strive for. This career path should include some high-level responsibilities, better compensation, and a more prestigious title.
You can implement regular meetings with staff to discuss their career goals and opportunities and create a plan to help them progress. Some employees might not be aware of the options they can use to expand their skills, but with your guidance, you can help them achieve their goals. When there isn't a clear career path in place, employees are more likely to leave for other companies where they can explore new career paths.
Encourage Work-Life Balance
A healthy work-life balance is vital to employees, but it can mean different things to different employees. For some, it means a flexible work schedule so they can take care of personal issues; for others, it is clear start and end times that stop them from responding to emails at 3am, and some want more vacation time. At its core, a healthy work-life balance means reducing work stress.
Employees want more time with their family and friends and to enjoy their life without feeling burnt out and exhausted. By offering a better work-life balance, not only are you improving their well-being and reducing your turnover rate, but you are also gaining more productive employees. Employees that are well rested and have enjoyed time to switch off between their shifts are likely to have more energy during their working hours, increasing your output witot exhausting your staff.
You can look to integrate a healthy work-life balance into your company culture. This will look different for every company, but you could include hybrid or remote working, flexible work schedules, a generous vacation policy, or limits on after-hours work requirements. Just a few small changes can have a huge impact on your staff.
Create Learning Opportunities
Employees who have access to personalised learning and development are more likely to remain in your organisation. It shows staff that you are committed to helping them achieve their goals, which can increase satisfaction. But there are benefits for you too. It allows your employees to strengthen or gain skills that will help your company, increasing your success.
Creating learning opportunities doesn't need to be difficult, either. You can set aside a job-related education reimbursement or a budget for in-person conferences. You should also consider offering different types of training to suit everyone's learning needs, including in-person and virtual training sessions.
These learning opportunities can save your business money in the long term, too, as you don't need to train or hire new staff; you can simply move reskilled existing workers to fill any existing gaps. When creating these opportunities, though, be sure they are tailored to the individual. You need to consider their aspirations, skills, and projects they are focused on to guide them to the right development opportunities.
Pay The Market Rate (Or Higher)
It goes without saying that compensation is one of the most common reasons people will accept a job offer. Pay and benefits will also drive employees to new companies, especially if they feel they are not getting a fair wage in their current role. You will want to look at what your competitors are paying to ensure you offer a competitive compensation package.
You will also want to consider regular raises and bonuses to keep your existing staff. This helps employees feel appreciated for the role, too, increasing their productivity. We think it's worth investing in your employees outside of their pay, with healthcare, wellness programs, memberships, learning opportunities, and other benefits that can attract and retain them.
Learn From Past Turnover
Finally, we recommend that you spend some time considering your past turnover rates and evaluating why employees left. Do you have exit interviews recorded that you can use to analyse why some employees are leaving? By considering what went wrong in the past, you can make changes that will help your employees valued and committed to your company.
Reducing Employee Turnover
Being tasked with reducing your employee turnover rate can seem daunting, but it doesn't need to be! By incorporating the tips we have given you today, you can create a positive workplace culture that celebrates and recognises employees, committed to helping them grow and reach their goals. Which tips will you implement today?
Employee Turnover FAQs
Can turnover be a good thing?
Some employee turnover is healthy, as it shows the success of your company. As your business evolves, employees can either meet the new challenges or feel a disconnect. It can sometimes be better to let these employees go and find a more suitable role than pressure them to fit into a new culture or vision.
How much does employee turnover cost?
Employee turnover costs vary depending on your company and the roles you are filling. It can range from half to twice an employee's annual salary, making it very expensive to continue recruiting and filling roles. Aside from the financial cost, you also need to consider the lower morale, higher burnout, lost business, knowledge, and damage to a reputation that can
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