According to Gallup, U.S. businesses lose a trillion dollars every year due to voluntary turnover. So, what can your organization do to keep the people you have and save money? Here are three best practices to retaining employees if your turnover rate is high.
Top Strategies to Reduce High Turnover
Identify Primary Causes
Some turnover is inevitable. People retire, relocate or decide to switch careers. You won’t be able to change these situations, but you can focus on other causes. Specifically, what are the top three preventable reasons workers choose to leave? It may be low pay, poor work/life balance, lack of professional development opportunities or a bad manager. Of course, you’ll uncover some problems during exit interviews, but at this point, you’ve already lost an employee. Therefore, keeping open lines of communication is a more sustainable tactic. If you see an individual is struggling, have a heart-to-heart conversation to find out what’s wrong. Or schedule regular one-on-one meetings with your workers to stay on top of potential issues.
Reduce Pain Points
Once you’ve identified the primary causes of turnover, you can work toward solutions. Keep in mind, often this isn’t easy. Many problems require a creative approach. For example, let’s say you’re losing talent to a competitor who is paying more. And unfortunately, you don’t have the resources to meet their rates. This doesn’t mean you’re stuck. However, you will need to explore innovative tactics. For instance, you could offer other perks such as flex time or remote work options in place of higher salaries. These benefits would cost your company less than raises, nevertheless, some people would consider them to be even more valuable. Other issues may require you to make tough decisions and/or investments. If workers are quitting because of a bad manager, should you let that manager go? Or if employees are complaining about a lack of professional development, are you ready to design a more robust program?
Build a Better Culture
What if people heard your company’s name and immediately thought, “Wow! I’ve heard that’s a fantastic place to work.” Chances are your turnover rate would be low. Again, developing this type of culture requires time and dedication. As business consultant Simon Sinek points out, you need to start with your purpose or WHY. “Why does your organization exist? And why should anyone care?” Employees who believe they are working toward something bigger than themselves are more engaged and less likely to leave. For more advice on improving your culture, check out 5 Tips to Creating a Company Culture That Attracts Talent.
Are You Trying to Assemble a More Loyal Team?
FirstStaff is here for you! Our recruiters place light industrial workers, administrative staff and other professionals in Conway, Arkansas and beyond. We can help you find people with the right skills who also fit well with the culture of your organization. Learn more about all the staffing services we offer today!