5 Ways to Reduce Employee Turnover in Your Company
The last thing any company should want is revolving door syndrome, better known as employee turnover. According to the Bureau of Labor Statistics, the national turnover average is 20%, which is very high. Turnover is a major problem, because not only does it show you your employees are leaving for better opportunities, but frequent turnover can be insanely expensive. Much research suggests the cost of turnover is about 30% of the employees compensation when they leave. The company must find a way to keep up with the loss of the employee, while also posting jobs, interviewing, hiring, etc., all which cost money.
Although turnover is financially expensive, the greatest cost is lost productivity. With employees constantly leaving your company, there is a loss of morale. There will be constant training which is beneficial, but not when the door is constantly revolving. The trainings are taking up the time that employees could be working.
If you are experiencing high turnover in your company, it is time to reevaluate how your business functions. If you don’t know where to start, this blog is for you. Here are five helpful tips to reduce employee turnover:
Have a Well Defined Intensional Culture
Hire well to obtain the people you need that will be ideal for the job. Instantly connect them to the culture through an onboarding process. This includes trainings and meetings where you get to know them more on a personal level, and find out how well they fit within the company. During the process, establish the mission of the company and connect with them, even before the I9 and W2 paperwork is filled out.
It is important to provide both positive and critical feedback about their progress. This should happen regularly, at least once a month if not more. Make it a priority to schedule a touch base to let them know how they are doing and what you are pleased with, and give them a few things they can work on.
Keeping your employee in the loop of how they are doing is beneficial. You never want them to be surprised. Annual reviews may leave them in shock about their performance if you only report to them during this time. Doing this gives them no time to “hit the mark” during the year. Frequent reviews will help employee correct themselves.
Invest in Development
You want to make it known to your employees that you want them to grow and succeed as professionals. You can do this by letting your employees go to conferences, hold discussion groups, let them join associations, etc.
The other half of how we invest in learning is to give them opportunities to learn new skills through hands on work. You can do this by training them on a new software, or helping them learn a new trade, such as photography, if it is beneficial to their occupation.These are all good examples of growth and development.
Value Their Opinions
Give employees opportunities to be involved and to voice their opinions. Some employers struggle with this, but we have to remember to utilize peoples experience. Their experience and expertise is why they were hired in the first place. They should feel confident to speak up about certain things that would be beneficial for the company. Maybe they have a suggestion for a new software or piece of equipment that would make jobs easier. This lets your employees know you value them, and there aren't just leaders making all of the decisions inside a “vacuum.”
Set Clear Expectations, and Hold People Accountable for Them
Make sure people know their roles and their goals. Your employees should never have to guess what their job is. Establish what responsibilities are theirs right away, and do not change them unless they are properly notified. People want to be held accountable for their actions so they know what they need to get done. You can do this through deadlines, product quantity goals, money goals, etc.
While you are trying to reduce employee turnover in your company, it is important to keep the 10 Keys in mind, specifically Keys 1, 4, and 5.
1. Supporting Growth—Providing support for employees’ personal and professional development.
4. Expecting Excellence—Setting high expectations for employees.
5. Requiring Accountability—Upholding and reinforcing individual responsibility to the organization.
By using these 5 tips and the 10 Keys, it will be easier for you to lower your employee turnover rate. You can now better understand the things that make employees want to stay in a company, so you can cure the revolving door syndrome once and for all!