July 8th, 2015. Ben Lloyd
How to: Reduce Employee Turnover
Image via Alan Cleaver under CC
If you’re looking for ways to reduce employee turnover then you’ve come to the right place. Here you can find out how to hold on to your most remarkable employees.
A high employee turnover is not good. Experts estimate that it can cost companies twice an employee’s salary to find and train a replacement. And not only is it bad for a business, it can lower the morale of existing employees. To prevent high turnover from occurring in your workplace, follow these tips:
Hire the Right People from the Onset
Whilst this may seem easier said than done, it’s important to really vet candidates carefully during the interview process. This is not only to check if they have the required skills, but to ensure that they will fit in well with the company and potential colleagues.
Be sure to define the role clearly to the candidates and be 100% sure that the candidate is right for the role and the company before employing him or her. Hiring the right people from the start is the single best way to reduce employee turnover.
Offer an Attractive Compensation and Benefits Package
This is really important to employees. If they don’t believe they are being offered a decent package, they will soon start to look for a job elsewhere. Offer competitive benefits that keep up with an employee’s development in terms of salary; no one wants to be doing a job that they’re underpaid for.
Be sure to incorporate life insurance as well as flexible working hours and bonus structures into the package, and review compensation and benefits packages at least annually. Pay attention to trends in the marketplace as employees will be doing just that.
Recognise Accomplishments and Reward Employees
If employees are putting in all the hours under the sun, or are going that extra mile, then they’ll need some form of recognition in order to feel appreciated. If not, they’ll either work the bare minimum or look for another job.
Show your employees that they are valued by dishing out praise and offering rewards. Not only will they see that you have recognised their best efforts, a rewards scheme is an incentive for employees to work harder.
Provide Opportunities for Growth
Employees won’t want to stay with you if there’s no room for development. Why would they stick around if you aren’t investing in them? Employees want to see how they can progress and what they need to do to get there. A lack of development opportunities can result in a high turnover.
So, what can you do? Offer goals and give them something they can work towards; be it a promotion, taking on a new project or training a junior. Outline clear career paths. Annual reviews or midyear check-ins should take place so that your team have the chance to ask questions regarding their role as well as other topics they may wish to discuss with you.
Follow these simple tips and you’ll no doubt maintain a team of employees that are loyal to your company.
Now you know how to reduce your employee turnover, but do you need more advice regarding your business? If so then be sure to read about health and safely in the office to protect your company and staff. Or, for tips on how to get it right first time, take a look at our SME start-up checklist.
Article By Ben Lloyd
July 8th, 2015
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben