It's Cheaper To Keep Them
Training a new employee cost a company a lot of money, so it's better to keep the employees they have--in a happy place. Not just because it's cheaper to keep them, but having employees with a long tenure means they probably have a sense of loyalty to the company. One of the biggest issues faced by employers is how to find and keep good employees. However, it is very hard to attract new applicants if a high turnover rate at a company is common knowledge. No good employee wants his time or money wasted, so a high turnover rate would immediately send up his red flag to seek employment elsewhere. High turnover interrupts the inner workings of any operation, it can also make managing harder, and the costs are outrageous. Remaining employees sometimes have it harder than the company. Employee morale will be extremely low and the productivity will be next to nothing. The motivation at the company will be hindered because remaining employees are forced to pick up the slack for the employees who either quit or were terminated. They also have to deal with the stress of welcoming new people in only to lose them a few weeks later.
Having some room to grow is always an incentive for employees and so is a little employee appreciation. Praising employees when they do a good job goes a long way. Some managers become drunk with power, and will only focus on what an employee is doing wrong, so this is definitely something a company should be cognizant of. Also, having an open door policy helps companies keep turnover rates down. While it's never ok to be friends with all of your employees, they should be able to go to a specific person to vent about certain issues. It is very important that the integrity of the company is never compromised. Always being honest and up front with employees will build respect.
Employees revolve the doors of restaurants almost as often as the customers. Restaurant turnover rate is one of the highest, hence the reason most dining establishments are always hiring. Some restaurants lose up to 40% of its employees within the first two-weeks of employment. The reason, most of them do not want to partake in the unorganized chaos. In addition, new employees feel as if they are being set up for failure instead of success. Some restaurants do not even have training implemented or outlined, they just throw the new people to the wolves. The first impression given to potential employees is a very lasting one, so if they do not feel as if they are being treated as an asset, they will go some place were they will be.
Aces in Place
If a good employee knows her worth, she wants to know that her employer has all of his aces in place, as well. High turnover rate should be a sign to a company that his employees are either unhappy with compensation, with working conditions, or with something else, but ignoring the problem will not make it go away, but it will cause your employees to do exactly that.