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Employee turnover and retention is a significant priority for businesses, with high turnover rates leading to increased costs, reduced productivity, and decreased morale.
That’s why having a successful retention strategy in place is just as important as finding top talent. So, how can an employer implement strategies on how to reduce employee turnover?
Employee Turnover Meaning
Employee turnover, in technical terms, refers to the rate at which employees leave an organisation and are replaced by new hires. It’s an important metric that is prioritised by HR teams because it reflects the happiness and productivity of its staff, which in turn indicates the stability and long-term sustainability of a company’s workplace.
Employee Turnover Calculation
Calculating the turnover rate involves first taking a measure of how many employees leave a company in a given period, usually a year. Turnover is then calculated by dividing the number of employees who left in that period by the average number of employees in that time. When you have that figure, multiply it by 100 to show the percentage.
Employee Turnover and Retention
Employee turnover rate and retention both play a crucial role in shaping the success of an organisation. By prioritising staff retention, HR teams can build a loyal workplace with increased productivity and a positive impact on the company’s overall performance. It’s important to make sure there’s a balance between managing the turnover and implementing successful retention initiatives. When the balance is right, employers can expect productive, thriving employees who are fulfilled and excited about contributing to the long-term success of the business.
How To Reduce Employee Turnover
Reducing employee turnover requires a proactive approach that supports the longevity of your employees.
1. Source the Right Talent
Candidate Sourcing is a crucial process for an organisation looking to build a high-performing workplace.
Finding the right employees starts with clearly defining the job requirements, writing a comprehensive job description that outlines the necessary qualifications, skills and experience needed for the role, and posting an attractive job advert that appeals to a diverse range of people.
Having a job description that is as detailed as possible will go a long way to managing the expectations of your potential hire, to ensure that they don’t later realise that the role is different from what they had anticipated.
2. Successful Onboarding
A successful onboarding process is vital for ensuring new employees feel welcomed during what can be an uncertain time. Successful onboarding goes much further than administrative tasks and paperwork, to ensure that the new employee is given as positive start as possible.
If you don’t have an HR team or dedicated person who can help with this, use your office manager to help with onboarding. The process should start before their first day, and can include a welcome message alongside a pack on what they can expect in their first week or month. Supporting the social aspect of your company ahead of their start date can be beneficial. For example, a coffee or drinks could be organised with your new hire and the rest of the team so that they see some familiar faces on their first day.
Throughout the onboarding period, ongoing training and support should be provided to help the employee grow within their role in the first few months. Setting the foundation early will go a long way to supporting their long-term success and positive contribution to the business.
3. Recognition For Employees
Employee recognition supports fostering a positive and motivated workplace which involves recognising employees for their hard work and achievements. Recognition can take various forms, whether that’s simple verbal praises or formal awards and incentives. Additionally, public recognition will be well-received by some, such as acknowledgement during team and companywide meetings.
When people feel valued for their hard work and can see how it fits into the bigger picture of the business’ success, they are more likely to continue their enthusiasm for the role in the long term.
4. Clear Career Paths
In our latest Salary and Benefits Review which surveyed over 500 employees, a lack of career progression was cited as the reason a third (31%) of people left their previous roles. Having a clear career path is beneficial for employees as they provide a sense of direction, purpose and growth opportunities. When people have a clear understanding of the potential career growth plan within the organisation, they will be more motivated and engaged within their roles.
5. Encourage Healthy Work-Life Balance
Encouraging employees’ work-life balance goes a long way to supporting their wellbeing and overall happiness. From the top down, by promoting a culture that values the importance of personal time, employers and leadership teams will find that that staff are more energised and productive when at work.
There are a number of ways that HR teams can implement this, with one of the easiest being flexible arrangements such as remote work options and flexi-hours. Importantly, managers should also set realistic workload expectations to avoid excessive overtime and prevent burnout.
Leading by example and promoting self-care, offering resources for stress management and wellbeing initiatives will further demonstrate the business’ commitment to supporting a healthy balance between work and personal life.
6. Learning and Development Programs
Tiger Recruitment’s above-mentioned survey revealed that the third most common (21%) reason people leave their jobs can be attributed to a lack of training and development. Having personal development initiatives in place provide employees with the necessary knowledge and support to excel in their role. By investing in continuous learning opportunities, employers are demonstrating the ways that they value their staff, prioritise their growth and offer opportunities for career advancement.
Looking To Hire?
If you’re looking to recruit or looking for support on reducing employee turnover, get in touch with us today.
Frequently asked questions
How can staff turnover be reduced?
Reducing staff turnover is an important priority for employers who want to minimise the number of people who resign from the business. When staff leave, they take with them their IP and all the knowledge they have acquired; it can also negatively impact the stability of teams they leave behind. There are a number of ways that HR teams and business leaders can encourage employee retention and minimise turnover. These include: optimising the onboarding process, offering competitive compensation and benefits, supporting initiatives that encourage positive morale, implementing development opportunities and encouraging work-life balance.
What helps reduce employee turnover and absenteeism?
Reducing employee turnover and absenteeism relies heavily on enhancing employee satisfaction and engagement. Effective strategies include offering a competitive compensation and benefits package, providing a supportive onboarding process and delivering clear development opportunities.
Why do we reduce employee turnover?
Reducing employee turnover is a crucial goal for any organisation. By retaining employees, employers can save time and money associated with finding and onboarding new talent. A lower employee turnover rate also creates a more stable and experienced workplace, which in turn improves the overall morale, productivity and efficiency of staff.
What is the main cause of employee turnover?
People leave a company for a multitude of reasons. In Tiger Recruitment’s latest employee survey of over 500 people, it was revealed that the top three reasons people left their previous role were because:
- There was no room for progression
- They wanted a salary increase
- There was a lack of training and development
These were closely followed by a desire for better flexible working options and a feeling of burnout.