How to Lower Your Employee Turnover Rate
Do you know how much employee turnover is costing your business? One organizational psychology expert did the math and found it costs an average of $72,000 to replace six entry level employees.
Employee turnover isn’t just a hassle; it’s costly to your business. Lost productivity eats away at your bottom line. The more people you lose, the more your business’s profitability suffers.
How can you stop the bleeding? Here are a few ways to lower your employee turnover rate:
Hire Based on Attitude
It’s easy to fudge your way through a resume and interview. It’s harder to fake a positive, motivated attitude.
When you’re making your next hire, focus more on the way a person reacts to certain situations. Will she fit in with your company culture? No matter how qualified a person is on paper, if she has a cynical outlook, she probably won’t stick around. Hire your employees based on their attitude toward work over their experience in the industry.
Increase Their Pay
On average, employees receive a 3 percent pay raises. That’s pretty low considering the average pay raise was 5 percent not too long ago. Factor in inflation, and your employees are looking at around 1 percent pay increases if they stay with your company for ten years.
Your employees are aware of this sobering reality, perhaps more than you realize. When another enticing offer comes their way, they’ll flee your company. To get your best employees to stick around, you have to make it worth their while. Greasing their pocketbooks by rewarding top performers for a job well done is one way to do that.
Consider Their Personal Needs
No dollar figure is high enough to ask an employee to perpetually sacrifice life outside of work. Your employee’s health, his family, his friends all matter just as much (if not more) as his career.
To keep your employees from handing in a two-week notice, give them flexibility to tend to their personal needs. Telecommuting, fair scheduling, day care assistance, or fitness benefits are some of the easiest ways to help your employees balance their work and personal responsibilities.
Create a Social Workplace
People need social interaction. No matter how introverted your team is, having a social workplace will bring people together to work harder and better. Hold team lunches, take your team out for happy hour once in awhile, and encourage social interactions.
Creating a social, positive workplace goes a long way toward keeping employees engaged and on board with your company. To reduce turnover, make your office place and company culture inviting for your team.
