Employee turnover is a major concern for all businesses. No one prefers to work in a place where people leave frequently. High employee turnover results in a number of problems such as low morale, increased recruitment expenses, increased training costs, shortage of trained personnel, low efficiency and reduced credibility. If you are in human resources or a business owner, here are some things that can reduce employee turnover.
1. Hire the right people
While recruiting for a position, you will normally look for a person who is a good fit for the job in terms of qualifications, skills, experience and ability. These are the basic requirements, but ensure that the selected candidate is also a good fit for your organization and its culture. It is important to understand the person’s goals and career ambitions. You can then judge if the person will be happy with the role and growth path that you are offering. Sometimes, selecting the most qualified candidate may not be the best decision.
2. Get the compensation right
You will find it very difficult to retain people if your compensation package is way below the market for the role. If your package doesn’t compare well with the competition, you may find yourself running a sort of training center. People join, get trained and then leave for better pay.
If you are a small business, you may not be able to compete with large corporations, but you should ensure that you don’t lose people to businesses of your size.
3. Offer employee benefits
An attractive benefits package and employee perks can sometimes compensate for lower pay. It is important to review your benefits package and non-medical insurance offerings periodically to ensure that it stays competitive.
4. Recognize and reward good work
Recognize people who go beyond the call of duty to achieve goals, meet deadlines and improve customer satisfaction. Acknowledgement from superiors, a certificate to record the efforts and a small monetary reward will do wonders to the morale of all the employees. At the least, a letter of appreciation is required.
5. Give plenty of opportunity for career growth
Before starting the recruitment process, check if there are existing employees suitable for the position in question. Offering jobs to existing employees saves time and it is also an opportunity to reward people who consistently perform well and are capable of bigger responsibilities. It also conveys the message that the company cares about its employees and their growth.
The career growth path for every employee should be communicated to them during recruitment and performance reviews so that people know where they are headed and how they can get there.
6. Offer flexibility
Sometimes, a lower pay can be compensated by offering flexible working hours or other facilities. Allow limited work at home days. Offer facilities like daycare or tie up with a nearby daycare facility.
7. Avoid overloading people
If you frequently demand more from your employees than what they can do in normal working hours, you will lose them quickly. It will also adversely affect their productivity and motivation. You may also invite other problems like increased sick days and absenteeism.
8. Keep the work environment friendly and cheerful
People spend most of their day at work and want it to be happy and cheerful. A tense, stressful and depressing work culture can turn off the best people even if you offer the best pay.
In some organizations, even a minor problem triggers a hunt for the guilty. This just spoils relationships between people and makes them fearful, overcautious and defensive. It keeps the work environment tense and kills innovation. A work culture that is more forgiving encourages people to try new things.
9. Delegate and encourage others to do so
Have faith in your subordinates and occasionally make them part of your decision making process. Delegate responsibilities so that people feel important and take ownership for their work and behavior. It also prepares them for roles higher up in the organization.
10. Conduct periodic performance reviews
A review gives employees a formal opportunity to explain difficulties, discuss their performance with managers and gives them feedback about their performance. It also provides a basis for hiking salaries and identifying problem areas. It is also an opportunity to prepare people who have outgrown their current roles for more demanding roles.
11. Fix problem areas
When multiple employees in a particular department or reporting to the same person are complaining, you know that something has to be fixed. This could be an issue with the person in charge or something entirely unrelated to people. Investigate and fix whatever is wrong.
12. Manage toxic employees
Some employees frequently engage in toxic behaviors like complaining without good reason, talking behind people’s back and revolting against authority. Toxic behavior should be nipped in the bud. If it is not corrected, it will poison the work environment and spread to other employees. Identify the causes of such behavior and solve the problem. You can fix whatever is wrong with the jobs of the people involved or ask them to change their behavior. If they don’t, show them the door.
13. Manage poor performers
Some people don’t perform well in their roles. They frequently make careless mistakes, miss deadlines and fail to take responsibility seriously. In the process, they slow down their teammates and increase others’ workloads. This could be due to a lack of required skills or an attitude problem. Lack of skills can be corrected by training or by demoting the person into a less demanding role that he or she can handle easily. If the person has the right skills, but does not want to work, dismissal is usually the only option.
14. Encourage team work
Recognize and reward team accomplishments. Working towards a common goal and having a stake in the success of the team increases bonding and understanding between employees.
15. Conduct exit interviews
Exit interviews help you understand why people are leaving and give you a better understanding of employee problems. This will help you correct the situation if necessary and prevent more people from leaving for similar reasons.
Successful businesses regard their employees as one of their biggest assets. As an employer, you are constantly investing in your people. If you do the right things, you can reduce employee turnover and get the most out of this investment.