Employee turnover results in significant costs to businesses, including anything from a severance package to the time spent hiring and training the new employee. Therefore, any reduction in turnover will greatly improve your long-term financial situation and success, no matter what industry you’re in. While there’s no perfect “fix” to completely eliminate the inevitability of turnover, we created a list with some of the best ways to reduce employee turnover. Take a look and start improving your retention!
9 of the Best Ways to Reduce Costly Employee Turnover
Hire Applicants Who Are a Good Fit
You can reduce employee turnover by starting at the beginning and analyzing your hiring process. People who are a good fit for your team and workplace culture are more likely to succeed and stay long-term. They’ll be happy and productive as part of your team. On the other hand, employees who don’t fit in well will not like working at your company and ultimately leave for another opportunity. Their low morale can also be contagious. While skills are important, the best hire could be an applicant with no industry experience but fits in well.
Quickly Fire People Who Don’t Fit
If you happen to hire someone who doesn’t fit well at the company and doesn’t meet expectations, it’s important to let them go early. A poor performer can be a drag on morale, slow down work processes, and negatively affect other team members. Avoid this from significantly impacting your business by quickly hiring someone else who will be a better fit.
Keep Wages and Benefits Current
It’s common and perfectly understandable for people to think about their income and benefits packages compared to what they could get at other companies. This is especially true in the digital age, with websites such as Glassdoor and Indeed facilitating comparisons. If your compensation isn’t adequate, your employees might quit and pursue positions with your competitors.
Recognize and Reward Employees
Work is often difficult and stressful. By recognizing outstanding employees and rewarding them, you increase morale and encourage a culture of meritocracy. The prizes do not have to be significant. A pair of movie tickets is sometimes enough. Also, a small trophy can mean a lot. It’s the thought and recognition that truly counts.
Offer Work Flexibility
With the health pandemic, many workers have experienced work flexibility for the first time. They will likely want to keep these new arrangements. Working from home is a huge benefit for employees. There’s no commute, which saves a considerable amount of time and gas. They can also provide childcare to their kids.
If properly implemented, many positions can be done remotely. And, even if one can’t be 100% remote, you could have occasional work-from-home days or offer flexible working hours. Your employees will be very grateful if you do your best in having workplace flexibility.
Promote Employee Engagement
Employee engagement and well-being can affect things in the workplace, like productivity and worker absenteeism. If morale is low, there are a multitude of things you can do. Try setting up a morale committee to come up with ideas. What can be implemented will vary from company to company. Hosting events like ice cream socials and pizza parties are inexpensive yet effective ways to show employees you appreciate them. Plus, it promotes communication and team-building among crew members.
Offer Career Development Opportunities
No one wants to be stagnant in their career. This is especially true for top performers who prioritize constant improvement. Perhaps some long-time employees should look into lateral moves. No matter the task, doing the same thing for years will eventually get old. By trying something new, they keep work fresh.
One of the most basic ways to drive employee development is to conduct monthly, quarterly, or annual reviews. Also, if your budget allows it, look into offering formal education opportunities or tuition reimbursement. Mentorship can also be a great growth opportunity. This pairs a seasoned executive with a junior employee. Both can benefit from the experience. Best of all, this program does not have to cost you a dime.
Conduct Quality Exit Interviews
Your human resources employee should be well trained in giving exit interviews. Hopefully, they’ll be able to identify why the employee is leaving. This interview can be an excellent source of information on why people leave your company. For example, if many people are leaving because of low income, then you know you should probably increase salaries.
Add Sprockets to Your Hiring Process
Last but not least, one of the best ways to reduce employee turnover is to hire the ideal applicants with Sprockets’ AI-powered hiring solution. Our platform creates a success profile based on your current top-performing employees and automatically assigns a “fit score” to applicants with sophisticated personality assessments. It ensures you hire the right fit for your team — every time.