Reduce Employee Turnover and Save

It should be obvious that high employee turnover is bad for business. The costs associated with employee turnover have been discussed time and time again – lower productivity, recruitment and training costs, overworked employees and lost knowledge. These are just some of the ways that losing great employees can damage an organisation. But while you know the cost of employee turnover, do you know what you should be doing to reduce it?

Hire the Right People 

By taking time at the recruitment stage to ensure that you are hiring the right people you will have less employees leaving when they realise the job was not what they wanted. Don’t hire out of desperation – spending a bit more time looking for the best person may cost more now but it will save you money in the long run. This will give you more time to find the ideal candidate, who is going to stick around. When recruiting you should make sure you look for someone who will fit in well in the organisation and will be able to change with the business, not just someone who has the skills needed at the moment. Of course, when doing this it is important that you offer the right pay and compensation to attract and keep the employees you want.

Challenge Employees

One big reason why employees leave is that they are bored with their work. Once they are bored, they get unmotivated and unengaged, and start looking for something new. Keep people challenged and they will be much happier. People like the chance to learn and move up in the organisation. They will feel like they are contributing more to the company’s goals, which makes employees happier. Employees are more satisfied if they feel like they are valued and what they are doing is having a positive impact on the company. By keeping the work challenging as they learn, you will show them that you trust them and value their role at their company, making them much more engaged and less likely to leave.

Flexibility

A lot of people think that the best way to keep employees happy is to give them more money, but this is not always the case. Except in situations where the employee is earning very little, more money will not actually make them more committed to their job. What really does make an impact is giving them greater flexibility. Allow employees to telecommute if they choose, set their own hours, anything that gives them the freedom to work in the way that is best for them. As long as they get all their work done, allowing employees to work the way they want helps everyone. Employees are more committed and motivated and the company can save money. Not everyone works in the same way so learn about employees personal needs and try your best to facilitate them. It might seem like a lot of work but it will be worth it when you have highly productive and committed staff.

Positive Work Environment

No one wants to work in an environment that is stuffy and boring, where everyone is miserable. So create a positive work environment that encourages social interaction and regular praise and recognition for good work. It is one of the easiest ways of keeping a happy workforce. Encouraging employees to interact and get to know each other makes them more engaged. You are much less likely to leave your job if you have lots of friends there and enjoy spending time with them at work. An environment that encourages frequent praise and rewards also allows people to feel more valued. One thing that definitely makes people eager to leave a job is feeling unappreciated, so stop that from happening by giving praise to all those that deserve it. Positive feedback is hugely important to people, especially if it is public or in front of higher ups. This makes it even more meaningful than just a private email. They will feel more respected and committed to their job as a result.

Review Sessions

Meeting regularly with employees allows you to get updates on progress, hear about successes and connect with employees. Employees are going to feel more involved in the organisation. They will also understand better the goals of the company and what they are doing to contribute to them. As I’ve mentioned, this is sure to make them more engaged. This is also a good time to ensure that everyone is happy, find out what people what from their jobs and figure out ways to give them more responsibility or move up in the company if they want. This will help staff feel more committed again as they will have an outlet to ask questions and set a career path they want. Having open lines of communication throughout the company is a great way to make employees feel more engaged and want to stay with the company longer.

Exit Interviews

Of course, no matter what you do, you will always have people leaving your company. You won’t be able, and shouldn’t try, to stop this completely (some employee turnover is good for a company). But it is important that you understand why people are leaving. Some may be leaving because they got a better offer, they are moving, they want a change. There is little you can do about this. The ones you really want to know about are the ones who are leaving because they are unhappy. Understanding the problems exiting employees had with the company and what they are looking for can help you pinpoint issues you need to deal with. You will them be able to reduce employee turnover by addressing and fixing these problems.

These are just some ways to improve employee turnover. To retain great employees in your business you need to figure out why they are leaving and address the specific issues. Once you have done that you can use some of these tips to keep your employees happy and engaged.

Have you had problems with high employee turnover? How have you dealt with them? Let us know in the comments below.

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