A business is only as successful as its employees. If your employee turnover rate is high, your business will suffer. In addition to being very costly, high employee turnover negatively affects productivity, company culture and team morale. You need to make employee retention your priority. Use the solutions in this article to keep your best employees happy, motivated and in their jobs for a long time.
A high employee turnover rate can be a major problem for any business. Failure to retain employees can influence fellow employees, affect your finances, and impact your company’s overall success.
What is Employee Turnover?
Employee turnover is defined as the loss of talent in the workplace over time. It refers to any employee’s departure from a company including resignation, layoffs, termination, and retirement. Turnover is expected, but a high rate can be detrimental.
If your business has a high turnover rate, you will spend more money, time, and energy trying to maintain a functional team.
Turnover costs include advertising and posting a new position, time to recruit and interview candidates, and costs related to pre-employment screenings (opens in a new tab/window) and assessments. Turnover can also negatively impact a business’s reputation, employee productivity, company culture, and team morale.
Employee Retention Is Easier Than You Think
If your business is experiencing high turnover, it is in your best interest to implement strategies to ensure you retain more of your top employees. This article discusses creative solutions for employee retention.
1. Provide feedback
Image source: civictheatre(dot)ie
Feedback is essential in any workplace because employees want to know their work is valued. Feedback can have a positive impact on employee performance while also increasing motivation and productivity in the workplace.
In addition to formal feedback and performance reviews, make sure you offer praise and acknowledgment as often as possible. If an employee finishes a large, difficult project, make sure to show appreciation and congratulate them on a job well done.
A simple “thank you or “great job” can go a long way. The more an employee feels like their work is valued, the more they will want to stick around.
2. Allow for room to grow
Image source: hrdailyadvisor(dot)com
Most employees want to know they can learn new skills and advance in their careers. If your company does not offer room for advancement and growth, employees may feel stagnant and grow frustrated. Employees will believe they have no reason to stay at a job with no future and leave to go to a company offering career advancement.
Show your employees a projected career path so they can see where they can go from their current position. Having a goal to work towards will give them a sense of purpose.
In addition to offering them a career plan, allow employees the opportunity to learn new skills and put them into practice. Provide ongoing coaching and professional development opportunities to support their advancement. Encourage employees to take advantage of training and educational opportunities.
If you want to retain your employees’ long term, you need to allow a plan of growth. If employees see you are invested in their future, they are more likely to remain. If you are invested in your employee’s futures, they will be more inclined to stay and grow professionally.
3. Show mutual respect
Image source: smarthustle(dot)com
Respect is an important ingredient for a positive work environment. A lack of respect in the workplace can decrease employee engagement, leading to an increase in employee turnover
Remember the adage, “Always treat people the way you want to be treated.” If you want employees to show you respect, you need to demonstrate your respect for your employees.
To foster a culture of respect, you need to lead by example. Treat with courtesy, politeness, and kindness. Never insult, belittle or disparage an employee.
Listen to what employees say and encourage them to express ideas and opinions. Implement employee suggestions for improving the workplace. Let employees see they can make a difference. When you show your employees, they are valued and you care about their growth, they will show you the same respect.
4. Create a positive company culture
Image source: cio(dot)com
In a recent Glassdoor survey, more than half of U.S. employees (opens in a new tab/window) said company culture is more important than salary when it comes to being satisfied at work. In the same survey, 74% of employees said they would look for a position at another company if their current company’s culture deteriorated.
Positive company culture helps attract new employees, lowers workplace stress, improves productivity, boosts employee morale and facilitates collaboration. If an employee genuinely enjoys coming to work, they will be more likely to stay.
Placing an emphasis on a strong company culture helps not only with employee retention but with your company’s overall success
5. Offer competitive salary and perks
Image source: entrepreneur(dot)com
Money may not be everything, but it can be a huge contributing factor in employee retention. In one industry survey, 58% of workers (opens in a new tab/window) said money is the main driver in choosing their job, followed very closely by benefits and vacation packages.
Many employees equate their worth with the salary and benefits they receive from their employers. Offering a competitive salary helps individuals feel like their work and time match their pay.
If the salary you offer is not competitive enough, employees will easily find another position at a different company with higher pay. To ensure you are offering competitive employee salaries, do research on similar companies in your industry and location. Bureau of Labor statistics can also be helpful in determining if you are offering a fair compensation plan.
In addition to salary, offer attractive, comprehensive benefits including health insurance, retirement savings plans, life insurance, disability insurance, liberal vacation policies and flexible hours. Other benefits such as tuition reimbursement, gym benefits, and commuting subsidies are also helpful in making employees happy.
6. Promote a healthy work-life balance
Image source: nm(dot)org
Sometimes employees get so wrapped up in work, they don’t have time to devote to their personal life. Work-life balance has become increasingly important to employees especially Millennials and Gen Z.
Implementing flexible work hours, work from home days and PTO can help promote a healthy work-life balance. When your team can find a balance, they will perform at a higher rate and will be more satisfied in their role overall.
A work-life balance also has benefits for employees beyond increasing turnover. Overworked employees are more likely to suffer mental and physical health issues, which in turn impacts productivity, morale and drives up insurance costs.
Corey Doane is a contributing editor for 365 business tips. She has a B.S in Public Relations from San Jose State University and has experience in PR, marketing and communications.