Apply these 3 practices to reduce worker turnover, saving time and money

In business, turnover is a four-letter word—and for good reason. High employee turnover wastes time and money.

A study from Employee Benefit News found it costs 30-50 percent of a worker’s salary to hire a replacement —and this percentage can rise as high as 400 percent depending upon the level of the position.

But there’s good news. After analyzing 240,000 exit and employee interviews, the Work Institute found that 75 percent of the reasons employees left could have been prevented by the employer. The three most prevalent reasons for leaving are also some of the easier and less costly issues to tackle: career development, work-life balance and management behavior.

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3 tips to avoid the setbacks involved with employee turnover:

  • 1. Show employees they’re valued: Emphasize career development growth opportunities and employee achievements.

When an organization invests in employee development and training, what it’s actually investing in is the people. Rather than force employees to seek out and pay for training on their own in order to keep up with ever-changing technology, business laws, or new systems, offering training shows employees that they are valued—and that can lead to greater job satisfaction.

While training requires a monetary investment by the employer, recognizing employee achievements does not. And it can have a similar affect on employee feelings about job satisfaction and their role within the organization. A simple email or handwritten note of appreciation can go a long way.

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Creating a clear path for career advancement can also help create a workplace where employees feel secure in their jobs and motivated to improve performance. To do this, consider implementing a mentorship program and spending time on succession planning.

  • 2. Make sure managers have the right skills.

We’re not talking about technical or project management skills. Managers need to have excellent people skills in order to effectively engage and motivate their teams. Managers with short tempers, poor listening skills, and other bad boss behaviors can create toxic work environments that can crush employee morale or push workers out the door. Hiring the right people for management positions and providing leadership training will have positive impacts across the organization.

  • 3. Realize that compensation isn’t all about the salary.

Competitive compensation packages require good salaries, yes, but flexible scheduling is becoming increasingly important when it comes to recruiting and retaining top talent. While some managers are still leery of letting employees work from home or set their own schedules, companies that offer flexible work hours report benefits such as improved morale, lower stress and burnout among employees, and increased productivity.

A FlexJobs survey of 1,500 professionals found that 82 percent of those queried would be more willing to stay with their employer if they were offered flexible scheduling. And 39 percent reported rejecting a promotion, hiring offer, or quitting a job because it didn’t allow for flexible scheduling. Improved work-life balance also helps improve employee health and lowers absenteeism according to a study from the University of Minnesota.


Employee turnover impacts the bottom line. Organizations that make employee satisfaction a priority are more competitive and better suited for success, plain and simple.

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Many businesses turn to Ulliance experts every year to help create positive work environments through Training, Wellness, Employee Assistance, and other programs. How can we help you? Visit www.ulliance.com, or call 866-648-8326.