10 Ways to Reduce Employee Turnover in Your Business

10 Ways to Reduce Employee Turnover in Your Business
October 16, 2017 Toohey Reid

There’s no doubt about it. Retaining employees and reducing turnover is better for your business and your budget. Of course, you can’t prevent employees leaving to change career paths, but you can look at ways to provide the kind of workplace that people will want to spend time in. Here are top tips for keeping your staff happy.

1. What makes your top employees happy?

Successful employees that are happy in their daily work life are less likely to leave, so analysing the attributes of your top performing staff can be a useful exercise. What is it about their roles that make them productive? Do they use flexitime or have the option to telecommute? If you can come up with a few answers, you might be able to implement these changes for other staff too.

2. Know your staff turnover rate

It’s important to figure out your staff turnover rate so you can see if you do have an employee retention problem. Is it above or below the industry rate? What you may think is a high staff turnover could actually be the norm.

3. Hire the right staff

Hiring staff quickly, getting them trained up and working from day one can seem like the best option to keep costs down. But if you overlook what set of skills and behaviours are needed for the job, you could find yourself advertising for the position again a few months down the track. Take the time to make sure you get the right person for the job during the hiring process.

4. Consider the workplace environment

Workplace culture is often overlooked as a reason why people leave, but this can be a strong driver to find another job. When hiring, be sure to tell candidates about your workplace environment and ask questions to determine their social behaviours. If they’re social, they won’t be happy in a workplace where people just do their work and go home. Likewise, if they’re not very social, they won’t enjoy feeling peer pressured into Friday afternoon drinks.

Do your employees like a creative workplace with freedom and flexibility, or a structured workplace with clear routines and systems to follow? Find out what they like and then amplify it.

5. Provide post hire training

If you’re going to invest time in hiring and training, it makes sense to have onboard training and practices in place to support them when they start work. For example, having computers and phones set up for them from day one ensures a smooth transition into the workplace. Setting up progress meetings can let them know if they’re meeting your expectations.

However, it’s also important to keep training your employees after they’re out of the ‘newbie’ phase. Many employees leave their workplace because they feel like they’ve hit the ceiling or that they could learn more by working for someone else. Make sure your employees feel like they’re constantly leveling up and that you’re providing them with strong mentoring by offering ongoing training and staff workshops.

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6. Keep employees interested

Bored, disinterested staff are more likely to leave than ones that are interested and engaged in their work. Look at ways you can increase staff engagement. Not only will you reduce the likelihood of staff leaving, but you’ll also increase productivity and foster a sense of purpose and accountability. Do a charity event together or start a sports team, so that your employees feel part of something bigger.

7. Conduct salary reviews and offer perks

Another way to increase staff retention is to review salaries, so they’re comparable with what your competitors are paying. Benefits and job perks, such bonuses, health insurance, pension funding and flexitime can also make a job more attractive to people and help you to retain staff.

8. Show your appreciation

Fostering an environment of encouragement and recognition will help to make staff members feel respected and acknowledged for the work they do. You don’t have to praise them on an everyday basis but sending an email of appreciation for the completion of a difficult project or meeting a deadline doesn’t take much effort and it’s free.

9. Increase their skills and knowledge with more study

A staff member who can’t see a future with your company and who is stagnant in their job is more likely to leave than one who can see a clear career path. Being aware of this will help you to let them know of ways they can advance within the company with extra curricular training or hands-on coaching. Could you subsidise part or all of a Tafe Certificate they can study while working for you? Can you take your team to industry conferences and events? What about hiring a speaker or industry expert to come to your office once a month to teach?

10. Be flexible

Offering a flexible work schedule is an attractive benefit for many employees as it means a better work-life balance. Having the freedom to work from home or adjust hours as needed around family or appointments can markedly increase work satisfaction and productivity.

Looking for more business advice? Want strategies to improve your business growth and reduce employee turnover? Get in touch today!

General Advice Disclaimer

General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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