by Jason Richmond, CEO and Chief Culture Officer at Ideal Outcomes, Inc.
Employee turnover is a significant problem for businesses. It’s costly, time-consuming, and can negatively impact morale. If you’re currently facing high turnover rates, you’re not alone.
Businesses everywhere are experiencing the effects of the Great Resignation and are faced with the challenge of losing employees and trying to fill multiple empty roles. Fortunately, there are several things you can do to keep your staff engaged and lessen your turnover rates. We’ll explore this in more detail below.
Why Is Employee Retention Important?
Before we look at how to reduce employee turnover, it’s important to understand why employee retention is so important. After all, turnover is inevitable, and it’s not always possible to keep everyone on your team happy. Why put so much emphasis on reducing turnover?
There are a few key reasons:
Turnover Is Expensive
Replacing an employee can cost up to 150% of their salary. Not only do you have to pay for things like recruiting and training, but you also lose out on productivity while the new hire gets up to speed. This is critical time and money that could be better spent elsewhere in your business.
Turnover Hurts Morale
When employees see their colleagues leaving, it can hurt morale. Those who choose to stay may be left to take on additional work until a new hire is in place.
Turnover Can Affect Company Culture
Your company culture is one of your most important assets. It’s what makes your business unique and attractive to prospective employees. When you have high turnover rates, it can be difficult to maintain a strong culture.
Turnover Can Impact Customer Service
A high turnover rate can impact the quality of your customer service. Your customers may regularly interact with new employees who are still learning the ropes or existing employees who are overwhelmed after taking on a former colleague’s workload.
Turnover Can Lead to a Skills Shortage
When team members leave, it can create a skills shortage within your company. This is especially problematic if those employees held critical positions within the company. When this happens, it can be difficult to find qualified replacements, and your business may suffer as a result.
It’s clear that keeping your existing employees happy in their role with your organization can save you time and money and protect critical customer relationships. Let’s take a look at some strategies for reducing employee turnover and keeping your staff engaged.
How to Reduce Employee Turnover and Keep Staff Engaged
Knowing how to reduce employee turnover can make the difference between a thriving business and one that’s constantly struggling to find—and keep—top talent.
Voluntary turnover rates in the U.S. are at 25%, according to the Bureau of Labor Statistics, which means that one in four employees are expected to leave their jobs. With numbers like these, it’s clear that reducing turnover should be a top priority for any business.
So, how can you keep your employees engaged and reduce turnover? Here are a few tips:
Keep Communications Open
Effective communication is key to fostering a healthy company culture and keeping employees engaged. Poor communication is one of the leading causes of employee dissatisfaction, so it’s important to ensure you’re always keeping your employees in the loop.
Consider hosting regular team meetings to update employees on company news and changes and encourage them to ask questions or provide feedback. An open-door policy can also be a great way to encourage your employees to come to you with any concerns or suggestions they have.
Offer Opportunities for Growth
No one wants to feel like they’re stuck in a dead-end job. Offering opportunities for growth and development is a great way to keep your employees engaged and motivated. Encourage your employees to take on new challenges, give them the opportunity to learn new skills, and promote from within whenever possible.
When employees feel like you genuinely care about them and their career development, they’re more likely to feel content in their roles and stay with your organization for the long haul.
Everyone likes to feel appreciated for their hard work. Showing your employees some appreciation is a great way to keep them happy and engaged. If you can’t offer promotions or raises, try offering other incentives, such as more paid vacation days, flexible work hours, or additional job-related benefits.
There are many other ways to show appreciation on a regular basis, such as giving verbal compliments, writing thank-you notes, or offering small rewards for a job well done. Regardless of your chosen method, ensure your employees know their efforts are being noticed and appreciated.
Make Sure You’re Hiring the Right People
Hiring the right employees from the start will go a long way in reducing turnover. Conduct thorough interviews and provide applicants with realistic job duties so they can fully understand the role they’re applying for.
It’s also important to take the time to find individuals who fit your company culture and align with your company’s overarching goals and values.
Offer Competitive Pay and Benefits
Another way to keep employees satisfied with your organization is to offer competitive compensation. Employees who feel like they’re being compensated fairly are more likely to be satisfied with their jobs and less likely to look for other opportunities.
Make sure you review your salary ranges regularly to ensure they remain competitive. Also, consider offering a benefits package that meets the needs of your employees.
Hold Regular Performance Reviews
Performance reviews are another meaningful way to keep employees engaged in their roles. These reviews give employees feedback on their work and help them understand their strengths and what they can do to improve.
Performance reviews are best when held regularly. Ensure you set up a system for conducting these reviews and communicate it throughout the organization.
Encourage a Healthy Work-Life Balance
Work-life balance is a critical factor for 72% of job seekers. When employees have a satisfying, functional work-life balance, they’re far less likely to suffer from burnout and will likely be more productive and happy at work.
There are many ways to encourage a healthy work-life balance. You might try offering flexible work hours, generous paid time off, or telecommuting options. Showing your employees that you value their personal time will go a long way in keeping them happy and engaged.
Make the Workplace Enjoyable
Adding some excitement to the workplace can help make it somewhere people want to be. This might mean offering perks and amenities like free food and drinks, on-site fitness facilities, or comfortable break rooms.
You can also make the workplace more enjoyable by fostering a positive work environment. Encourage employees to socialize and make sure they feel like they’re part of a team. A happy workplace is a productive workplace, so it’s worth taking the time to create an enjoyable environment for your employees.
Fostering a Positive Work Environment to Keep Employees Engaged
Employees are an essential element of your business, and high turnover rates can have detrimental effects on your bottom line. By fostering a positive company culture with strong communication, employee appreciation, growth opportunities, and other company perks, you can give your valued team members many reasons to stay.
At Ideal Outcomes, we help businesses create a competitive advantage and improve their business performance through culture evolution. We understand the challenges that come with turnover, and we have solutions to help you overcome them.
Are you ready to drive strategic culture change in your organization? Download the Culture Readiness Tool and learn where to start your culture journey.