7 Strategies for Reducing Turnover

By Unemployment Tracker

Every time a skilled worker leaves a company, it costs the company about 30 percent of that employee's salary to replace them.1 When a company loses several employees in a short period of time, that figure can add up to a very significant expense. An organization that takes steps to retain its best employees can save a considerable amount of money -- and enjoy a much healthier bottom line. The following strategies can be implemented right away, won't cost an arm and a leg, and will almost undoubtedly improve a company's retention rates.

Hire the right people in the first place.

In exit interviews, employees often declare that they would have stayed longer if they'd had a better idea about what their role in the company was expected to be. Hiring managers should be sure to accurately describe the requirements for any open position and be clear about what's expected from each individual employee. If they leave out any of the important details about a position just to fill an opening, they may find themselves back at square one very soon. Finding the right fit for a candidate involves being as transparent as possible about what the job entails, as well as what skills are necessary to do the job effectively.

Prepare a good onboarding process.

After explaining the role and its responsibilities, managers should also inform their new hires about the company's culture, mission, and vision, and about how the employee will fit into those overall objectives and goals. Expectations about their performance should be clearly stated, along with an accurate picture of what the first few months of their employment will be like. To prevent a new employee from being overwhelmed by the details of an entirely new position, they should have access to appropriate personnel who can address any questions or issues that arise.

Offer useful training.

In order to be successful on the job, any employee needs to possess the knowledge and skills required by their position. It may be necessary for the organization to provide a combination of online training, classroom training, and hands-on opportunities in order to convey its policies and procedures clearly. An employee who is well informed about what's expected of them and equipped with the appropriate tools to succeed will have a better chance of making a good contribution to the company; therefore, managers should continue training until a new hire demonstrates mastery of their essential skills. Once that point is reached, employees should have opportunities for professional development so that they can continue to learn and grow.

Provide appropriate compensation.

Employees often leave a company because they don't feel they're being compensated fairly or because a competitor is offering a significantly better salary. (Of course, it's not salary alone that keeps an employee in place: health care, insurance, and other elements of the compensation package can be major factors as well.) The compensation a company offers to its employees should at least be in line with what other companies in the same field are providing. If its pay scale is below that of other organizations in the area, a company should either increase its wages or offer other compensation to make up the difference.

Monitor manager performance.

When disgruntled employees are asked why they left their companies, one common reason they give is an inability to get along with certain managers. A bad manager can be the cause of employee turnover (just as a really good manager can help with retention). Because managers who don't deal well with people can push away great employees, it's vital not to assume that all managers are carrying out their responsibilities in the most effective ways -- and to keep an especially close eye on managers whose personalities may seem likely to cause friction.

Recognize achievements.

Many people like to be recognized when they achieve something exceptional, and employees are certainly included in this group. In fact, feeling unappreciated (or underappreciated) is one big reason why employees leave organizations. By taking the time to celebrate whenever someone has performed far beyond expectations, companies not only demonstrate their gratitude for superior performance but also show other employees that they, too, can receive public recognition for excellence.

Make employees proud of their company.

Organizations can significantly increase employee job satisfaction by finding ways to make their team members proud to be part of the workforce. More than at any time in the past, employees want to know that they're working for a company that is a positive force are more likely to stay at such a place. For example, because many of today's workers are motivated by a desire to contribute to positive solutions, a company could appeal to employees by become a major contributor to charities and other worthy organizations. Establishing a family-oriented workplace, too, could make employees feel very comfortable and satisfied with their employment there.

Staffing remains one of the major areas of concern for companies today. As organizations struggle to keep their positions filled with skilled talent, it's more important than ever for them to focus on retention. By following strategies that increase employee satisfaction and prioritize giving workers the information and skills they need to succeed, companies can improve the chances that their employees will stick around.


About the author:

Unemployment Tracker is a software company dedicated to providing unemployment cost-management software solutions to organizations of all sizes and types. For more information, visit unemploymenttracker.com.