If your most recent employee’s two weeks notice was longer in duration than his tenure at your company then you already know you have a turnover issue.
High employee turnover is not a problem to take lightly. According to studies, replacing an employee can cost as much as 2 times his salary and the harm it can do to your remaining workforce’s morale is immeasurable. So how do you solve this costly dilemma? Here are 5 tips to help reduce your high turnover conundrum.
- Solve the problem before it occurs
Hire the right person right from the start. Yes sure this sounds easier in theory than in practice but investing in the hiring process can save you money in the long run. Do a thorough background check on prospective employees and, at bare minimum, get a grasp on what makes him tick before extending an offer.
- Provide fair compensation
You don’t have to overpay but make sure you are providing your employees with fair compensation. Nothing will inspire a job change quite like subpar pay. Use current average salaries in your industry to determine what fair really is. If you can afford it, pay a little more for a candidate that is exceptional. Again, in the long run this will pad your bottom line.
- Invest in your employees’ future
Show your employees that you care about their career growth. Provide them with a path to management and beyond. Even if this means procuring their talent to the point of leaving your company. It’s better to have a good employee for a short period of time than a bad employee that you know you will have to replace sooner than later.
- Take a close look at your work environment
Is your work environment positive? Is it the kind of workplace employees enjoy arriving to on a daily basis? If you can’t honestly say yes to both of those questions, it’s time for a change. Ensure that your employees are positively reinforced, only criticized in a constructive manner and their offices or cubicles are comfortable. Make your work environment a home away from home. Celebrate even small wins.
- Promote a healthy work-life balance
Don’t overwork your employees. In many cases working beyond 40 hours per week becomes counterproductive. Offer perks like a flexible work schedule so your employees can tend to family matters. Foster positive employee-to-employee and management-to-employee relationships by hosting events outside of the workplace. Care about your employees lives and they will reward you with loyalty.