Reducing Turnover

Even though a small company may pay above-average wages to its employees, it can still have a high turnover rate, especially in the areas of accounting, administration, and customer service. If this is your company's situation, below are some ways to reduce turnover.

A company's policy of compensating above the industry standard is wise in this competitive job market. Compensation may lure a candidate who is considering other offers. However, compensation alone may not necessarily create a loyal, productive employee.

Examine the environment. How is your company's vision communicated? Do employees feel valued, heard, and invested in the company's future? Are reward systems in place, and do managers recognize employees for a job well done? When an employee needs to improve his or her performance, do managers provide feedback in an effective and respectful way? Do employees see clear career paths? Is the company fun and flexible?

Take a look at your hiring process. Is your company making effective hiring and placement decisions? Do your hiring managers know how to identify candidates who are the best match for your company? If not, this mismatch may be a source of discontent to both the employer and the employees.

Think about your benefits. Are they as competitive as your salaries? Take a look at these issues with your employees to see what can be improved. You should see a decrease in turnover rates.