January 28, 2020
Boca Raton, FL, 01.28.2020 – Employees are the foundation of any business. The success or failure of any business depends on the ability to hire and retain strong talent. High employee turnover can cause a crack in the foundation and stall business growth.
While all businesses face turnover, today’s tight labor market (unemployment is at a 50-year low, according to the Bureau of Labor Statistics) makes it extremely challenging for employers to recruit, hire and retain good talent.
How Turnover Impacts Your Business
When employees leave, it’s costly for your business. According to the Society for Human Resource Management (SHRM), the average replacement cost for a salaried employee is estimated to range from six to nine months of the position’s salary. For an employee earning $60,000 per year, recruiting and training costs would total about $30,000 – $45,000.
Increased employee turnover can also have a negative impact on those who stay behind. Turnover can damage your company morale, ruin trust in company leadership, delay critical projects and crush productivity. An extremely high turnover rate can also make it difficult to hire and keep talent. Prospective employees may wonder why your business seems to have a revolving door.
Why Employees Leave
Employees leave their job for many reasons including feeling burned out, believing the job no longer meets their needs, poor benefits, and little room for advancement. When an employee grows tired of their role within a company, they often start looking for a better opportunity elsewhere.
How to Reduce High Turnover
How can you decrease your turnover rate? Businesses spend money to attract the right people, but they often don’t invest in retaining their employees. Here are six steps you can take to lower the potential for high employee turnover:
2. Provide a workplace environment that is enjoyable
If your employees are excited to come to work every day, they will remain engaged and motivated. Invest in your employee’s happiness.
● Offer up little perks that make a difference
● Host happy hours and team building events so stressed employees have something to look forward to
● Make employees feel special on their birthdays and work anniversaries
Those in positions of power have the ability to make an especially positive impact on their peers. If you want your employees to enjoy their time at work, treat them with respect and dignity, regardless of their role. Sacha Ferrandi, a real estate expert claims “Whether you are a head of a sales team, managing property managers or guiding medical interns, you should be making an effort to connect with and make a positive impression on those below you.” This will make them feel appreciated and valued while also and motivating them to become positive leaders in the future.
2. Promote incentives
It’s important to show your employees their work is valued. Employees who don’t feel their contributions are recognized are much more likely to search for another job. In fact, 79% of employees who left their jobs cited “lack of appreciation as the reason. If employees feel respected, acknowledged and motivated, they are more likely to remain in their roles. Some ways to recognize employees include:
● Congratulate employees as important goals are achieved
● Give employees raises for their hard work to keep them motivated
● Reward employees who go above and beyond
3. Ensure no one is overworked
Wesley Ward, marketing manager of an online faucet supplier reminds us, “Burnout and feeling overworked are often listed as reasons why employees leave their jobs. Be cognizant of your employees’ workload. In order to do everything, look for ways you can relieve employees of a heavy work burden”.
This might include:
● Helping people delegate out tasks to avoid them from every feeling burnt out
● Challenging employees to step and help where they can
● Sharing the workload among the team to avoid panic when projects are due
4. Hire people who are in it to win it
If you want employees who are excited about your company and their job, you need to hire them. The applicant with the most experience may not always be the best person for the job. You want employees who are driven to succeed.
5. Don’t be afraid to get rid of people are not a fit
While it might seem counterintuitive to fire an employee when you’re trying to decrease turnover, having a strong and positive team is more important. Sometimes, as much as you try, an employee can just not be the right fit. Employees who perform poorly or have a negative attitude can hold your company back and upset other employees who may have to pull extra weight.
● If there are any bad eggs, give them the chance to turn themselves around
● Keep a positive influence to keep your team’s momentum going
6. Offer flexibility
Today’s employees crave flexibility and work/life balance. In one survey, 73% of employees said their job satisfaction increased if their employer allowed flexible work arrangements. Allow employees to find a healthy balance between work and home life.
● Give the option to work from home when needed
● Allow employees to set their own schedules as appropriate
● If the team successfully reaches their goals, reward everyone with an extra day, typically around a holiday
With the job market as competitive as ever, businesses need to do everything possible to retain their best employees. Apply best practice advice listed in this article to keep employees happy and engaged. Preventing a high turnover rate can boost employee morale, foster productivity, reduce overhead costs of acquiring talent, and spur business growth.
– Written by Samantha Rupp
Distinctive Workforce Solutions is a global managed service company responsible for revolutionizing Vendor Management Technology in the temp staffing industry through the advent of ManageRight software. Since its founding in 1983, DWS has promoted a unified environment which encourages creativity and innovation, inspiring its employees to form healthy lifestyles, relationships, and strive to make a difference in the world. Today, DWS members span across the US, proudly supporting over 150 global brands with its excellent service.
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