Employee retention can have a huge impact on the success of your business. Not only can it affect the quality of service you offer, but poor retention can cost as much as 25% of an employee’s salary. For the most part, companies should aim for a turnover rate of 10% or less. However, if your business has a turnover rate that is higher than that, you may have a problem.
So how can you reduce employee turnover in your company? Read on to find out!
Top 4 Ways to Reduce Turnover in Your Company
1. Optimize the Hiring Process
One of the most important things you can do to reduce turnover is simply hiring the right people. How? You have to ensure employees are talented and a good cultural fit before hiring. Sadly, this is easier said than done.
Luckily, by improving your hiring process, you can more easily flesh out the more potentially unsuccessful employees from the ones who are more likely to succeed at your company.
Basically, successful employees are those who not only have the qualifications and know-how to perform their job well. They are also fit culturally within your company. But how can you adequately measure these qualities in a candidate?
One way is by giving them personality tests and exercises that measure their ability to complete certain tasks. For example, do you prefer employees who value communication, have a friendly attitude, and are tolerant? These qualities aren’t always easy to determine in a simple interview. However, a quick personality test may show you whether or not the applicant will be a good cultural fit in your company. Likewise, if you need an employee who is a good typist, why not have them perform a words-per-minute typing test?
On the other hand, you may want to perform more than one interview conducted by different employees in your company. Don’t just have the hiring manager conduct an interview. Why not also involve another experienced employee who works in the same or similar position as the job opening. This can help you find employees that are sure to fit their role.
2. Provide Great Benefits
Studies show that high morale equals high retention rates. When your employees are happy, their loyalty to your business will grow. One of the best ways to improve morale is to provide benefits that go above and beyond. For example, could you offer flex-time for employees, remote work, pay for public transportation, offer unlimited vacation, generous maternity and paternity leave, company discounts, or something else?
Another example includes covering work expenses, such as job training. Companies like The Lash Professional offer flexible lash training for their clients. When you cover job training costs, it also shows that businesses want to give their employees good resources. In short, benefits like these show your employees you care about a variety of needs they may have.
Additionally, when you go the extra mile for your employees, they are more likely to go the extra mile for your business. In other words, if you make your employees happy at their job, they will be less likely to leave their job.
3. Demonstrate Respect
Another way to improve employee morale is to find ways to show your employees you respect them. There are many ways to do this. One major way is to create an open line of regular communication and really listen to your employees. Never ridicule or shame them for poor performance or unconventional ideas. Rather, offer regular performance feedback and praise good efforts. Moreover, try to incorporate their good ideas into your business as much as possible.
When you encourage employees, show them respect, and treat them as valuable assets, morale will increase. As mentioned, when morale increases, turnover decreases.
4. Promote Individual Growth
Last but not least, promote personal growth within your company. How can you do this?
If possible, offer training programs that range across departments. Studies show that if an employee feels they can’t grow within a company, they are more likely to consider leaving it. That being said, you can offer personal and career growth through training programs, challenging assignments, and increased responsibility.
Start Increasing Retention Today!
If you start implementing these four simple practices, your employee turnover rate will ultimately decrease. There’s no better time than the present to start improving your business!