How Can You Reduce Employee Turnover?

If you want your business to be successful, it is important for you to find talented employees. Unfortunately, it can be very hard to find good help these days. You spend a lot of time interviewing numerous candidates, trying to find the right people for the job. Then, once you find the right employees to help you, you need to make sure they stick with your business. You need to reduce employee turnover.

Employee turnover is a serious issue, and there are lots of companies looking for ways to reduce it. What should you do if you want to reduce your rate of employee turnover and increase your retention rate?

1. Pay a Competitive Salary

There is no way around it. If you want your employees to stick around, you need to pay them a competitive salary. Even though your overhead expenses are probably going up, keep in mind that your employees are incurring a lot of additional expenses as well. If you want your employees to stay with you, you need to make sure they are not under a significant amount of financial pressure. One of the reasons why your employees start looking for other opportunities is that they feel like they can make more money elsewhere. If you pay them a competitive salary, they will be more likely to stick around, and your business will make more money.

2. Ask Your Employees for Feedback

People want to work at a company where they feel like their opinions are valued. Therefore, make sure you collect feedback from your employees on a regular basis. There are plenty of ways you can do this. For example, you might be thinking about putting a suggestion box in the lobby where people can give feedback anonymously. Or, you might be looking for something a bit more formal. For example, you might be looking for a pulse survey for your employees that you can pass out from time to time. If you collect feedback from your employees, you let them know that they have an impact on their workplace. As a result, they will be more likely to stay with the company.

3. Increase Vacation Time

People are under more pressure today than they ever have been in the past. Therefore, it is important for you to encourage your employees to strike a good work-life balance. Even though you can tell them this is a good idea, it is more important for you to show them just how important this is to you. One of the ways to do that is to offer your employees more vacation time. Do you really think your business would take a significant hit if you gave your employees an extra day off? If not, consider increasing their vacation time. They will thank you for it by sticking around.

4. Offer Volunteer Days

People want to work for a company that has a positive impact on the community. Therefore, you might want to give your employees volunteer days. These are not necessarily vacation days, but they are days your employees can use to volunteer instead of spending time in the office. If your employees do good work in the community, they will feel good about themselves when they go home at night. This will improve their morale, improving your retention rates. Furthermore, it will act as positive marketing for your business, as people will see that your company is doing good work in the local area.

5. Target Student Loans

Finally, consider paying off student loans for some of your employees. Student loans are an albatross around the neck of the younger generation. Many people feel like they will never be financially stable enough to hit some of the major milestones that their parents accomplished years ago. If you really want to show your employees that you care about them, you may want to create a student loan repayment program. This might be tied to the number of years people work for the business. The longer people stay with the company, the more of their loans you pay off. This can dramatically improve your retention rates.

Reduce Your Employee Turnover Rates

Clearly, there are a lot of steps you should take if you want to reduce your employee turnover rates. Continuity matters and the business world is more competitive today than it has ever been in the past. If you want to maintain an edge over the competition, you need to make sure you have the right employees to help you. One of the ways to do that is to reduce your employee turnover rates, ensuring that you have experienced employees who stick around. Even though it might be a challenge to retain good talent, if you are proactive about this, you will have an easier time encouraging your employees to stick with your company.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan