How to Minimize Employee Turnover
One of the biggest challenges for almost every business is to retain its top talent. Research has shown that companies with low employee turnover outperform their peers with a higheremployee turnover.
Employee turnover is the proportion of employees who leave a company as compared to the number of new employees joining an organization. These departures may take the form of dismissals, voluntary resignations, non-certifications, retirements, retrenchments, redundancies, and a hunt for greener pastures, among others.
Calculations of turnover can be confusing. Some companies categorize employee turnover as voluntary turnover, involuntary turnover, desirable turnover, and undesirable turnover.
Desirable vs. Undesirable Turnover
A little bit of turnover may not be that bad for a company. A low-performanceemployee being replacedwith a more competent person is beneficial for a company. And infusion of new people can bring in new ideas and learnings from other companies.
Undesirable turnover is when your top talent leaves your company. Thiscan be difficult for any organization as it drains its talented workforce.
Let’s explore some approaches that can be adoptedto reduce employee turnover and retain top talent.
#1 Hire Right
One of the biggest reasons for high employee turnover is not hiring right. You want employees who don’t just have the skills but also can fit into your company culture and are integratedinto the value systems of the company.
The biggest problem can be employees who have the skills but do not align with the value systems and culture of the company.
#2 Set Expectations Right from the Beginning
Employers are good at setting expectations for their employees. But employees have expectations, too. Unfortunately, most job seekers are not good at communicating their expectations. Hiring managers need to figure out the expectations of job seekers and determine if the company can fulfillthose expectations before hiring them.
A bad hire is someone who is good for the job but has such high expectations that it’s almost impossible for the company to keep him or her happy.
#3 Lead from the Front
Many employees leave an organization because of the way they are treated. Red tape, poor work environment, lack of learning opportunities, and not being able to get along with a supervisor are some of the reasons employees leave.
The biggest challenge for a growing organization is leadership. Quality people want to work for strong leaders. Try to be the best leader you can be, and make nurturing and creating leaders your top priority.
#4 Offer Competitive Pay
Pay is often a big reason employees leave. It’s an important factor. Make sure your company offers above-average pay in comparison with market rates. Also, figure out what else motivates your employees—health insurance, house allowance, overtime?
You may want to revise your employee perks frequently to stay on top of market conditions and stop employees from leaving for greener pastures.
#5 Show Appreciation
Many employees leave because they feel their work is not appreciated. Supervisors don’t realize the importance of appreciating the work of their subordinates. One employee who left his company of four years said, “My supervisor was always free to point out my mistakes, but not once did he bother to appreciate the long hours we put in during those difficult days. That was one of the reasons I quit my previous company even though the pay was good.”
#6 Allow Flexible Work Schedules
Work-lifebalance is an important part of every employee’s life. People need space to pursue activities other than work that matter to them. These include tending to their families, raising their children, managing sicknesses, and so on. If your company cannot offer a competitive pay package, then flexibility can be a differentiating factor to attract and keep the best talent in your industry.
#7 Create a Reward System
Just like verbal appreciation, employees also cherish material rewards. That’s why you should consider putting in place a reward system that aims to acknowledge employees and reward them appropriately for their effort in furthering the organization’s objectives.
#8 Create Opportunities for Career Advancement
Apart from better pay, most employees who leave an organization voluntarily often will do so with the aim of advancing their careers. To forestall such a trend, it’s important to create opportunities for career advancement and growth within your organization.
#9 Give Enough Room for Rest and Relaxation
Quite a few employees opt to quit their current employment due to a busy lifestyle. Several high-performance people work long hours for several years before they finally burn out and quit. Burnout is a major concern in the corporate world. So employers should consider providing enough room for rest and relaxation. This could be in the form of paid vacations, days off, and leaving work early.
#10 Encourage Suggestions and Ideas
Allow your employees to contribute ideas to your organization. Allow them to express themselves freely without any fear. Sometimes, employees feel their ideas are not appreciated. Sharing information about the business freely with your employees and being open to ideas and suggestions can make your employees feel emotionally invested in the decision-making process.
#11 Provide Job Training
If employees are not performing to expected standards, find out why. Is it because they don’t have the skill, or is it because they are not committed? Most employees want to do a good job. But sometimes, they do not have the skill to do a good job.
Training improves the skill of your employees and gives them the confidence to do their job to the best of their ability. Some companies even finance the further studies of an employee either in part or in full.
Employee turnover is one of the biggest challenges for an organization. If the top 10 percent of your talent is leaving every year, it’s a crisis. Proactively taking steps to reduce employee turnover can have a significant effecton the bottom line of your business.
Maria Espie Vidal writes for TimeDoctor.com, a software designed for tracking hours and optimizing productivity for remote workers and remote teams.