How to Reduce Your Employee Turnover Rates: Part One
Having high rates of employee turnover is an expensive problem. Some studies predict that replacing an employee can cost a business 6 to 9 months’ salary, and that’s just for hiring and training expenses.
It’s not just about the monetary costs either. Losing your employees could force your business to delay projects, due to a lack of essential knowledge and the staff needed to complete them.
Additionally, having a hard-working and well-liked staff member leave could send ripples across your entire business. Before you know it, your workforce could be experiencing loss after loss as staff continue to lose confidence in their employer.
Being able to retain talent/employees means that your business doesn’t have to suffer any of these consequences.
In this two-part series (the next part is out next week) we’re going to walk you through several ways your business can help keep your key team members, and stem the tide of staff turnover.
Hire the Right People
The most obvious piece of advice for reducing employee turnover is to make sure you hire the right person for the job in the first place. Choosing the right people for the right roles can help keep your workforce satisfied and loyal. It’s easier said than done, but with the right approach, you can significantly increase your chances of finding the right person to strengthen your team.
No matter how much foresight you may have, it’s impossible to entirely predict whether an employee is going to remain with the business or not. However, taking more care in your company’s recruitment process is never a bad thing.
Firstly, ensure that your job description is designed to appeal to excellent candidates; clearly outline what they can expect, and what you’re looking for in a suitable candidate. Doing this should help filter out applicants who may be unsure about working with you.
Make sure that your business uses a reference system when hiring new employees: asking past employers will give you’re a good idea as to whether your candidate is a good choice or not.
When conducting interviews, asking the right questions can help you identify the reliable candidates from the unreliable ones: do they take pride in the work they do? Will they fit in with your company culture? Where do they see themselves in a few years time?
As the modern workplace continues to evolve, so does the way people work. Some people may work better and be more willing to stay with your company, if you make allowances for more flexible working hours, working on the go, or remote working.
Employees could have responsibilities, such as young children, or could find it difficult to get into the office very often, have a long commute or could just prefer to work from home. If they feel like a company doesn’t offer them the work flexibility they want, they may go somewhere that will.
Obviously, certain roles require employees to be in the office or place of work, but there are options available to accommodate them. Redsquid is a firm believer in the benefits of the mobile office; we use solutions such as Voice over IP and Microsoft Office 365 to open-up new ways of working. This empowers our workforce to get the job done, no matter where they are.
Establish a Better Level of Communication
Good communication is probably the most important aspect of reducing turnover rates. Knowing whether an employee is unhappy, could mean the difference between them staying and leaving. Once you’re aware that someone is considering leaving, you can then take the necessary steps to encourage them to stay.
Scheduling monthly reviews with your employees could give you the chance to identify any issues they may be having. However, whether they’re willing to be honest in these reviews is a problem in of itself.
Some employees may be more inclined to air their views than others, but establishing a culture of honesty without repercussions could go a long way to getting genuine responses. No-one’s going to want to tell you that you’re not running your business properly if they’re afraid of being reprimanded.
Try encouraging these kinds of conversations outside of reviews as well. Casually inquire as to how a project is going, and they’ll appreciate you showing an interest in them, as well as provide some valuable insight. Not only will you receive the knowledge in a timely manner, but the relaxed atmosphere might also produce more genuine responses.
Be Aware of Employee Wellness
Employee welfare is more than just holiday pay and cups of coffee. Recognising that: firstly, your employees’ happiness is important, and secondly, that their happiness is affected by a number of different factors, is a significant step towards reducing turnover rates.
Obviously, every employee is different, but having a fundamental understanding of your workforce’s welfare is another crucial step to take. Having good communication with your employees does come into this, but knowing what to look for and ensuring that certain needs are met, is equally as important.
Try collecting surveys from each department asking what they feel they need to function effectively, and how your business can help cater to these needs. Introduce opportunities for employees to suggest improvements; for example, you could supply a suggestions box with a reward for ideas that get implemented.
Don’t Overwork People
Stress can have a seriously detrimental effect on your employees. It’s not just the act of worrying, but the physical, psychological, and emotional strain it can produce. All of this eventually does wear people down, and exhausted employees won’t do your company any good.
The damage that intense pressure or an unrelenting workload could have on your employees is not worth the benefits. So, consider encouraging a culture of regular breaks; whether to have a walk around the block or to grab a coffee, and discourage work habits like all-nighters or staff taking on too many roles.
Encourage the use of paid holiday, and create an environment where staff aren’t afraid to take time off for fear of everything collapsing.
Additionally, be sure to provide staff with project management tools designed to help them to effectively organise and complete tasks; such as Asana or Microsoft Outlook.
Click here for second part of this series.