While hiring the right people to begin with is the best way to reduce employee turnover, there are steps that you can take to start the process, even with the workforce that you already have.
Increased turnover means more money out the window and less in your bank account. According to specialists, it costs two times an employee’s salary to find, hire and train their replacement. What’s worse, finding the wrong employee can weaken the work environment as well.
Assess the needs of your organization and figure out what the current market value for your employees is. Because of the way that the economy is looking, chances are that even good, longtime employees might jump ship if there is an opportunity for better money elsewhere.
This brings about another important point about communication. If you want to know why your employee’s eyes are wandering, then you need to talk to them. Having quarterly meetings just isn’t enough, because they could be bidding you farewell by then. Arrange to have monthly staff meetings and let employees know that you have an open door policy and are available whenever they need you.
Surveying staff is another great way to figure out how to reduce employee turnover. By having a good handle on the workplace, they can make suggestions. For instance, one suggestion that came from a survey was to have a company retreat. The workplace (a medical clinic) was so busy that employees felt disconnected from management and from one another. Having the retreat rekindled the camaraderie with their peers and supervisors, and the end result ended up being an annual retreat for all staff!
Encouraging engagement through social interactions and regular functions is a great way not only for staff to talk to one another, but to foster a rewarding work environment that cultivates a culture of respect. Praise staff when they need it the most and they will take pride in their work that they do. This positive attitude is contagious in any workplace and you will soon find other employees taking note and participating as well.
Employers need to consider that just because a means of reducing employee turnover may mean an out of pocket expense, it should never be discounted. When you take into account the fact that you’ll be spending tens of thousands of dollars to replace an employee, doesn’t it make more sense to just put out a smaller amount of money to keep the staff that you have?