It goes without saying that you’re always working to reduce turnover at your company. It’s costly: typically 1.5 to 2 times the amount of an existing employee’s salary. It takes a heavy toll not only on your company’s bottom line, but also on morale, engagement and productivity.
According to a recent LinkedIn survey, the average annual employee turnover rate is approximately 11 percent. How does your organization compare? And what actionable steps can you take to stop the revolving door of exiting team members? Here are some ideas:
Hire the right employees to begin with.
Define each role and craft each corresponding job description clearly, so candidates fully understand your expectations. Don’t cut corners in your hiring process – including such steps as pre-screening and reference and background checks. Be sure a potential hire is the right fit, not just for job qualifications, but also for your company culture. Set the same high standards for new hire onboarding, so you set new employees up for long-term success.
Make the hard choices when you must.
Even if an employee is effective at getting the job done, if they aren’t a culture match, they may be doing more harm than good at your company. Don’t make rash decisions, but avoid such “cultural debt” by making the decision to replace people when necessary. When all is said and done, it will be better for everyone.
Offer competitive salaries and benefits.
Provide your employees with a fair wage, or better. In addition, tailor benefit packages to their individual wants and needs. There are no one-size-fits-all formulas.
Recognize and reward high performers.
Offer authentic, thoughtful employee recognition to celebrate people’s specific efforts, achievements and milestones. Research has repeatedly reinforced the value of creating a culture of recognition.
Provide work/life balance.
More than three-quarters of managers and 80 percent of employees surveyed for a Boston College Center for Work & Family study noted that flexible work schedules had a positive effect on employee retention. Make it happen for your most valued team members by offering remote and hybrid options whenever feasible, as well as as much flexibility in scheduling as possible.
Focus on employee growth and development.
Invest in your employees’ futures by providing ongoing learning and growth opportunities. In addition to on-site programs, provide resources for self-directed development for those who want to go the extra mile. Support your best performers as they work towards certifications, attend helpful conferences, and participate in professional organizations to build their skill sets.
It all comes down to respect.
When you respect your employees – as individuals as well as valuable team members – it all comes together. Find ways to cultivate respect every day in your workplace, and it will pay off in spades.
For additional insight on reducing employee turnover, contact PrideStaff Modesto today. We can help you successfully manage workflow changes, even in the face of today’s uber-competitive talent market. We look forward to partnering with you to build and retain your winning workforce.