Ten Strategies To Reduce Employee Turnover - Recruitometry
Whether you're a business owner, executive, or HR manager, you know that employee turnover is an unavoidable part of any organization. While all organizations want to build and retain a good resource pool, sometimes it takes a bit of expert maneuvering to make it happen. It's a fact well known that retaining employees for the long-term is the key to a company's success and ensuring profitability. While the past few years have seen an unprecedented employee turnover rate, we must take it with a grain of salt since this trend can be partially attributed to the global pandemic, which has affected the job market to a great extent.
Read on for some effective strategies to slow down the pace of that revolving door at your company.
Hire the right resources
One should never hire a resource in the spur of the moment. Hiring requires meticulous planning and preparation to ensure the right fit for the project and the company in general. Define the role clearly - to yourself and your candidates to ensure that everyone’s expectations can be met. You must hire candidates who are a behavioral and cultural fit for your company. If the employees don't fit in the work culture, they will have difficulty bonding with their co-workers, adversely affecting the work environment. An efficient capacity planning solution identifies the skill gap and helps employers get the right fit well ahead of time. It maintains a quality resource pool and avoids last-minute hiring costs.
Offer competitive compensation (competitive ≠ market dictated)
While good pay is a must to cover everyday expenses, it also helps validate an employee's efforts and make them feel valued. Therefore, be sure that your employees are paid a fair wage and offer benefits. When deciding compensation, it is always advised to go beyond what the market dictates and focus on crucial factors like ROI and promoting employee satisfaction. Why? Employee satisfaction automatically induces higher ROI in the long term, and yes, this is backed by solid and extensive research. For example, Costco’s median pay is $25, whereas the market dictates $13. As a result, they maintain higher pay, thereby ensuring an above-average profit ratio!
Letting go of people who don't fit
Firing can be challenging for even the most seasoned, but it is always good to let employees go when necessary. An employee might be an excellent fit for the job they are hired for and still not fit into your company's culture. An employee that is a bad fit for your culture pushes your company into culture debt. They will cause more bad than good by damaging your company's environment.
Encourage gratitude and generosity
Employees need encouragement and recognition. Appreciate your employees when they do something good. If they finish a big project before the deadline, congratulate them. In addition to employee-employer relations, it's also a must to encourage pro-social behavior in your employees. The aim is to create a positive work environment. Employees are motivated to stay when they are acknowledged, respected and desired.
Allow flexibility where possible. Flexible work schedules pave the way for higher productivity as a burdened employee is an unproductive employee. Ideally, employees should have the opportunity to create a work-life balance for themselves. Flexible work schedules allow employees to pursue things beyond work, like taking care of their families or following hobbies and passion projects.
Create opportunities for development and growth
An employee with a growth mindset will place great value on development opportunities. A resource manager can help the employees by advising them on a career path, giving purpose and setting a direction. Managers should track the progress of a project and gauge the employee's strengths and weaknesses. Employees perform well when they feel that their goals and objectives are being considered.
Share regular feedback
Sharing constructive feedback regularly with employees enables them to see themselves from their employer's perspective. Acknowledging strengths and addressing their weaknesses also helps create an environment conducive to developmen tand motivates employees to grow. While giving feedback is essential, it is crucial to take feedback from employees on how you can lead better. Expressing gratitude for their work should be a part of the feedback sessions.
Provide an inclusive vision
It is essential to provide the employees with purpose and meaning. You should offer employees a strong vision and goals for their work, which will increase their loyalty and sense of belonging to your organization.
Convey the firm's goal
Employees should share a common goal and be aware of the direction the firm, and by extension, they are headed in. Setting goals helps employees assess and work towards short-term and long-term targets. Your company's goal should align with the employees' goal to achieve tangible results.
Identify key performers
Every business is sustained by a set of diligent workers. You need to nurture the top performers and reward them accordingly to grow your company. It boosts their morale and encourages them to put a little extra effort into their work.