Top Tips to Reduce Your Company’s Staff Turnover Rate

Written by chicceo Published in

Whether you run a large company, work as a solopreneur, or have a business that sits somewhere in between, you’ll likely always be on the lookout for ways to save money in the workplace. From buying in bulk to reducing tax costs or finding the best loan options, there are plenty of financial tips for businesses that you can make use of.

However, one of the ways to cut costs that many entrepreneurs don’t think about, and that can often seem hidden, is reducing employee turnover levels. Although it’s difficult to get hard and fast numbers, many estimates show that it costs a company thousands of dollars each time a staff member quits. This amount can even add up to double the employee’s salary in the costs involved in finding and training an adequate replacement.

High employee turnover rates can hurt the profit levels of a business in many ways. Apart from being quite expensive to hire new staff in regards to recruitment costs and time spent screening and interviewing potential hires, there’s also the lost productivity to consider. In addition, a high staff turnover rate can also have a swift and negative impact on morale within a business.

Considering that it’s difficult to even know if a new candidate will work out in a role, it’s plain to see that it’s better to reduce employee turnover and to keep existing team members motivated, happy in their jobs, and productive at work. If you’re keen to keep your staff retention rates as high as possible, read on for five ways you can go about it.

Communication Is Key

One of the best ways to keep your staff from wanting to leave is communicating well with them. Make sure that all managers are open and honest in their dealings with employees, and also have the ability to listen well to staff concerns, issues or suggestions.

If staff feel that they’re being kept in the dark about the company’s direction, or feel like they have to second guess their role in the workplace, they will often quickly start looking for a new job. As a result, it’s important to foster a culture of clear communication within the business, as well as to keep employees apprised of important company developments as soon as possible.

In addition, wherever you can, get staff members involved in the decision-making process with leaders. This will keep them more engaged and committed to their work and, as an added bonus, they will often be the ones to contribute fantastic ideas! Remember that employees appreciate being informed and involved at work, and will always be much more likely to remain loyal to a company if they feel part of a team.

Create a Good Company Culture

In a similar vein, creating a positive, happy culture in the workplace is also a major key to retaining staff. Many business leaders overlook the importance of a good working environment for their team members.

To create a beneficial and productive culture in your firm, it pays to lead by example. You’ll see retention levels rise, along with innovation and productivity, if you don’t encourage gossip, criticism, pettiness, unrealistically long work hours, or any other type of negativity on the job.

Have a Clear Career Path for Staff

Staff members also need to see that they have a clear career path and growth plan in their workplace. Employees want to know that there will be opportunities for them to develop and move within the company, as well as the way in which they might go about doing so.

It helps to show your team that you’re looking out for their interests and aspirations too, not just the company’s. To do so, consider setting up a specific program of monthly reviews, or at least annual reviews. These will give employees and their managers a chance to check in on the progress of set goals, and to discuss ways for the staff member to advance within the firm’s ranks.

Acknowledge and Reward Staff Contribution

In addition, one of the best ways to reduce your company’s staff turnover rate is by acknowledging and rewarding the contributions of your employees. While many managers don’t take the time or make the effort to praise staff members for a job well done, it’s something that studies show is vitally important to workers.

Thank the team for their contributions by way of verbal recognition, an email, a thank you note, or even a ceremony in front of peers. Employees can also be acknowledged with awards, bonuses, trips, vouchers, bottles of wine, and the like — anything that shows them you have noticed their efforts and appreciate them.

 

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