Employee turnover can be expensive, not to mention time-consuming and detrimental to productivity overall. One 2017 study published in the Academy of Management journal, found that it costs businesses six to nine months of an employee’s salary to locate and train a replacement. When you have a revolving door with high employee turnover, that can add up quickly, causing significant harm to not only company culture but to the bottom line.
Improving Your Hiring Decisions
The Harvard Business Review, as reported by LinkedIn, found that 80% of employee turnover is due to bad hiring decisions. Selecting the right candidate in the first place should be done through in-depth interviews, ideally not with just one person in your company, but several, from the direct hiring manager to co-workers the candidate would potentially work with. It’s important to determine whether the person will be a good fit within your culture, in addition to the usual qualities such as their experience, skills and education. The cultural fit is just as essential to making a good hire, and perhaps even more so for ensuring the candidate will stay over the long-term.
Offer Good Compensation
Unfair compensation is one of the primary reasons an employee decides to leave a company. One of the most important things you can do is to offer a competitive compensation and benefits package. While you may not want money to be the only consideration an employee factors in his or her decision to take the job, they need to be able to cover their living expenses and have some left over for extras too. Do some market research to find out what your competitors are paying for similar jobs in your local area. If you don’t pay a decent wage, at least the market average, they’ll find another company that will.
Having a wellness program that includes options that encourage fitness and health, as well as providing special perks like office snack delivery, not only keeps employees happier to prevent turnover, but having nutritious fuel to keep them focused on those projects means productivity is improved as well.
It’s important to regularly praise good efforts and special achievements, in fact it may be one of the most powerful things you can do to reduce turnover – people want to know that their work is making a difference. Your key employees will always be more motivated when efforts to go above-and-beyond are recognized and rewarded.
Celebrate success among teams and/or departments too by bringing in breakfast or lunch when goals or certain milestones are reached.
More Flexible Work Schedules
If it’s possible, allow for some flexibility with work schedules so that employees can create a better work-life balance. It can be anything from flexible lunch times or flexible starting and ending times to occasionally allowing for remote work. When employees are allowed to live their personal lives outside of work, they’ll be more satisfied and less likely to look for a job elsewhere.