How to Decrease Employee Turnover
Employee turnover can be costly to employers. When a new worker is hired, the company typically provides training, benefits and other things that help the employee settle into the job. Once the employee has had several months of experience on the job, the company recoups that money through the employee's productivity. If the employee leaves, especially if it is shortly after completing the training phase of the job, the company suffers a financial loss and also has to pay to train the next employee hired. Reducing employee turnover can save the company time and money.
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Instructions
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Select employees carefully. An employee who is happy in the job and with his co-workers enjoys coming to work and will be less apt to leave. The interview process should include ascertaining the candidate's experience and training, and also what type of personality he has. Matching attitudes and personalities in a department encourages employee retention because it reduces potential stress between and among co-workers.
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Pay competitive wages. Researching area standards will help you choose a wage that will encourage employees to stay with the company. The same strategy applies to insurance and retirement benefits. Employees who are well compensated and have good benefits won't want to leave them behind to go to another company. Benefits cost money, but so does having to retrain if there is a constant exodus of employees due to low pay and no benefits.
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Grow a company culture. Making employees feel that they are part of a team, a working family, will encourage them to remain at the company. Holding monthly birthday gatherings for all employee birthdays each month, having holiday parties and providing lunchrooms conducive to employee socializing will help employees feel connected to one another and the company.
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Offer education. Employees who want to further their education will stay with a company that offers education benefits. Whether the company reimburses college expenses or brings a variety of training seminars in house, when employees can improve their lives through education, they will value working at the company that provides it.
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Remain flexible. Employees have changing family and life needs. Offering a flexible schedule, the opportunity to telecommute and other options help the employee maintain productivity while allowing her to take care of other obligations.
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Provide encouragement. Employees who feel they are valued by their managers will often go the extra mile on the job. Emails of recognition, awards dinners and gift cards for a job well done draw the employees into the fold and encourage retention.
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Implement an open-door policy. Placing suggestion boxes throughout the company and providing an open-door policy if an employee wants to discuss a concern lets the employees know they are valued.
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References
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