In 2017, the Bureau of Labor Statistics reported that the average employee turnover rate was 3.7% across the U.S. workforce. If you’re planning your company’s HR budget, you’ll need to carve out a significant amount for recruiting to account for the loss of previous employees alone. In fact, according to the Bureau of National Affairs, employee turnover costs U.S. companies more than $11 billion dollars each year.
However, this time-consuming and financially painful cost can often be reduced with proper and pre-emptive investments in employee retention efforts.
Here are 5 straightforward ways you can reduce employee turnover on your team today:
1. Place people in the right roles
The easiest way to ensure that everyone feels engaged with their work and happy in their position is to focus on hiring candidates with skills and passion. It’s easy to find someone with the right experience, but if that person doesn’t enjoy the work, there’s not much you can do to prevent their inevitable departure. By choosing candidates that align with a role’s expectations, both in skill and in personality, you can ensure that employees stay with the company longer.
2. Improve your company culture
To commit to a job long-term, employees need to feel like they’re a part of something bigger than themselves. A 2017 survey by Hays revealed that nearly 47% percent of people actively looking for a new job are doing so due to company culture.
Creating a culture of “working for the job” tends to be ineffective at retaining employees. Instead, work on building a culture that encourages active collaboration and empathetic communication. By intentionally establishing company culture and expectations with your team, including making sure everyone is on the same page regularly, you can improve employee satisfaction and decrease unnecessary turnover.
3. Prioritize employee learning and development
According to the 2018 Millenials at Work Report by Udemy, 42% of millennial respondents saw Learning and Development as the most important benefit, behind salary, when choosing a job. Since Millennials are the largest generation in the U.S. workforce, it’s incredibly important to make an effort to further employees’ careers through professional development.
Showing interest in employees’ career growth is an excellent way to help them feel valued. Without access to development or growth, employees are likely to grow bored and look for opportunities elsewhere. By giving employees plenty of learning opportunities, like trainings, workshops, and more, as well as long-term goals to work toward, you’re showing that you’re invested in them for the long-run, and are more likely to receive a similar commitment in return.
4. Regularly hold check-in in meetings
Meetings are necessary for communication within an organization. Without open dialogue between managers and employees, problems can sit idle for far too long and build into unresolvable tension.
Harvard Business Review found that employees who receive 2x the number of one-on-one meetings with their managers 67% less likely to be disengaged from their work compared to their peers.
Setting aside time to connect with everyone will help you deal with issues before they become more significant. Take the time to understand where employees are coming from when they express frustrations. In the long run, you could be preventing more than just one person from leaving; if one employee is frustrated by something, chances are other people feel the same way and just aren’t expressing it.
5. Recognize and incentivize hard work
When employees aren’t recognized or rewarded for the effort they put into their work, it’s easy for them to become unmotivated. However, the Incentive Research Foundation found that upon implementing incentive programs, employee productivity increased by nearly 27% when asked to work toward a goal. This increase in productivity shows an improvement in employee engagement, which ultimately helps keep the best employees around.
Start highlighting hard work and offering rewards for reaching or exceeding certain standards. Something as simple as giving annual bonuses or providing new benefits can make a measurable difference in your team’s motivation and commitment.
Maintain Your Team
Stop wasting time and money in an ongoing effort to replace employees as they leave and start investing energy into employee retention. By practicing our 5 tips to reduce turnover, you can help maintain a strong and dedicated team at your company.