Your company is as good as your employees, and a high employee turnover rate can prove to be a disaster to your company’s success. Approximately 60% to 70% of all employee turnover is voluntary.
This mainly has to do with inadequate recruitment decisions and not following the right strategies to reduce employee turnover.
Higher employee retention means higher productivity, customer retention, and higher morale among all the employees. Moreover, since hiring good candidates in today’s competitive age is challenging, retaining high-performing employees becomes even more crucial.
This article discusses in detail the causes of employee turnover and strategies to reduce it.
Strategies to Reduce Employee Turnover
1. Hire the right people
Hiring the right talent is the first and foremost high employee turnover solution for your organization. Recruiting the right people in your company will do wonders for its growth and ensure low employee turnover.
In addition, it will save you time and money, create a positive work environment, improve customer retention, and increase work efficiency and accuracy.
Soft, hard, and technical skills are similarly significant for an employee. Some soft skills to look for are a good personality, positive attitude, problem-solving capabilities, co-operation, reliability, and willingness to learn.
However, the key to successful hiring is finding a person who suits the job requirements and is a right fit for your company’s culture.
Ensure that the conversation between you and the employee is clear and utterly transparent during the hiring process. Close to 24% of employees are likely to stay longer when they can clearly explain their roles and responsibilities to the human resources manager.
Therefore, it’s essential to discuss expectations and the required skills and help them shape their future by tracking their growth.
2. Prioritize employee referrals
Using employee referrals for hiring is an underrated answer of how to reduce employee turnover for your company. Data indicates that employee referral programs have reduced hiring time by nearly 50%, which is incredible. No one understands the company’s culture and work recruitment better than its employees.
The chances are that the people they mention carry the exact skills required for the job. If you analyze deeply, you will realize that referrals are like having an unfair advantage to your brand.
Statistics prove that hiring referred candidates is faster and cheaper, and referred candidates stay longer.
3. Offer competitive pay
Adequate compensation is cited as the primary solution to decreasing employee turnover or reducing turnover rate. However, approximately 20% of employees quit their jobs within the first 40 days of recruitment, which has a lot to do with inadequate compensation.
On an estimate, the expense of replacing an individual worker can go from one-half to two times the representative’s yearly compensation. A report showed that employee turnovers cost companies almost $30 billion annually in the United States. One cause of high employee turnover is that it costs money.
Additionally, it is a severe drain on your company’s productivity and goals. Therefore, preparing a better salary strategy accounts for vital recruitment practices for reducing employee turnover rate. Offer your applicants reasonable pay and upgrade consistently to reflect their significance to your association.
4. Smooth onboarding experience
A good onboarding experience is one way that organizations use to reduce or avoid employee turnover. Research conducted by Glassdoor concluded that an effective onboarding process could increase employee retention by almost 80% and boost productivity by over 70%.
Surprisingly, most organizations don’t get it right, as reported that only 12% of employees were satisfied with their onboarding experience. In addition, HCl announced that over 55% of companies’ onboarding procedure is only processes and paperwork centric.
A study in the book, The ROI of Human Capital, clearly states an interconnection between employee onboarding and retention. The whole process can provide a brief to the recruits about the culture and work environment of the company.
5. Right work environment and regular feedback
Never underestimate the impact of a work environment on job satisfaction. It is one of the top reasons for employee turnover. A pleasing work environment is highly critical for an employee’s physical and mental health.
The right work environment doesn’t signify beautiful offices or other aesthetics alone. It has much to do with employees’ comfort levels working in your company.
Building a cooperative environment, where failure is looked at as the stepping stone to success and not something to be looked down on, can do wonders for your employee retention rate. Employees will start emulating trust in their managers and will feel secure. Their performance will automatically increase because now the risk of losing their job has decreased.
Moreover, establishing clear communication and regular feedback networks do have value.
Regular feedback from the managers is essential for employees to map their performance and shape their careers for growth.
In today’s competitive scenario, employee turnover is a genuine threat to all your recruitment efforts and resources. Reduced employee turnover meaning a threat to the organization. There are numerous benefits of low staff turnover. As you approach your recruitment process, take the time to consider whether the applicants you are selecting will stay with the organization.
It’s to your most significant advantage to draw in the right people, screen for cultural fit, offer competitive remuneration, and create outstanding onboarding experiences. Doing so will ensure that your recruitment process is centered around building a fantastic team that will stay long-term with you.