In my last blog, I wrote about the hidden costs of employee turnover. Unfortunately, there is no way to completely eliminate employee turnover, but there are ways to significantly reduce it. Here are 5 tips to reduce employee turnover:
1. People – I’m going to break this up into two parts:
- Hire the right people – If you follow my blogs, you’ll recall that I’ve mentioned this concept on many occasions. It’s quite simple – if you hire the right person to begin with, you won’t have to worry about finding a replacement. Define the role clearly and make sure both yourself and the candidate understand it. Keep in mind that the most qualified person for the job may not be the best cultural fit within your office. You may need to compromise and settle for the candidate with the 2nd best work experience if they are a better cultural fit with your existing staff. If not, you may not only force this person out in a short period of time, but your existing employees may start to look elsewhere if they get frustrated enough.
- Move on from the people who don’t fit – Sometimes you just have to know when to cut your losses. We all make mistakes and that’s OK. Once you realize you’ve made a mistake, you can’t just settle and let that person continue to work. You need to make a decision and show action. An employee who doesn’t fit can make a significant impact in the office – they could be “poisoning the well” and bringing down the morale of everyone around them. For example, if you have an employee who is constantly late and never receives any type of repercussions, other folks may get annoyed with that employee and eventually you for your lack of action. If you have an employee that sits at their desk watching videos or playing games on the computer instead of working, others will pick up on that and their work/effort will decline.
2. Compensation – If you’re trying to be cheap and aren’t paying a fair wage to your employees, can you really blame them for leaving you? Many companies offer very low raises (if any) and after a while, that employee is going to realize they can make much more money elsewhere. Review pay trends and stay up to date or you’ll lose some good people.
3. Recognize & Reward – You need to show your staff that you appreciate and value them. Some people are happy with a simple pat on the back or a verbal “way to go!”. Others may want cash. Find out what motivates your employees so you can properly reward them for a job well done. For example, I work with an avid golfer. Instead of a cash bonus, I may take him out for a round of golf at my expense. Another coworker of mine goes out to lunch every single day instead of bringing a lunch. For him, a gift card to one of his frequently visited restaurants may be a good idea.
4. Flexibility – This refers to work/life balance. If you don’t give your employees down time and expect them to work around the clock for you, you’re going to push people away. Family time is important and if you don’t allow your employees to have some time to focus on themselves, you’re going to burn them out. Employees understand that sometimes a little extra work is needed and they’ll put in the time and effort, but if you’re a micro-manager who expects your team to be available at all hours of the night and on weekends, you better start looking for replacements.
5. Development & Growth – Most employees look to develop their skills and improve on their work experience. If you’re not placing an emphasis on developing your staff, chances are they’ll start looking elsewhere. Also, most employees will want to advance in the company. If you won’t promote internally and always look to hire someone new from outside of your company, you’re sending a message to your team that they aren’t qualified or that you don’t care.
Use these tips to help build the right culture in your organization and keep the employee turnover rates down. By doing so, you’ll see your best employees stay and your business will be productive for many years.