Published on October 19th, 2019 | by Bibhuranjan0
Four Practices to Decrease Employee Turnover Rates
One of the most difficult aspects of running a business is finding well-qualified employees that are hardworking, reliable, and knowledgeable in their field. Much of the time, companies have to sort through hundreds of resumes and interview dozens of applicants just to come up with a handful of people to cover their open positions.
This process takes a lot of time and is quite expensive – even more so if the employees have to be replaced all the time. However, there are four simple ways to reduce high turnover rates.
Each company will develop its own unique strategy based on factors like the industry, size, age of employees, etc. A good place to start is determining the turnover rate you’re working with. From here, you can learn when, why, and how your employees are leaving most.
These four practices are a good place to start for anyone wanting better retention rates.
Employ the Right People
Because certain job positions are key to a company’s operations, they must be filled quickly to ensure all departments can work together efficiently. However, sticking an unqualified applicant into a slot that they are not really suited for usually just results in them having to be replaced sooner rather than later.
Therefore, it is important to slow down and take the time to get the right person for the job. Otherwise, it will end up leading to a toxic work environment that reduces productivity. In order to get the best employees possible, there are three different methods a company can use.
The first one is an intensive interview process where applicants are asked in-depth questions about their work experience and education. This is very important because it is impossible to tell much about someone in a short period of time.
Next, do a thorough background check and call their references. This allows you to see whether or not they really have the experience and education that they say that they do.
Lastly, consider having all of the applicants answer a series of questions about how they would handle certain challenges that they might face in the position they are applying for. This test is often one of the most important parts of the hiring process. This is because it offers a better glimpse of how well someone can use their problem-solving skills.
Keep Up With Pay and Benefits
Low-paying positions often attract applicants that have very little skills or education. Everyone needs to start somewhere, and everyone needs a job, so this isn’t always a bad thing. However, it’s important to keep in mind that people who are willing to accept such meager pay, in the beginning, will switch to a better-paying job as soon as they get the chance.
One way to prevent this from happening is to offer competitive pay and benefits that are commensurate with the level of work that the position will require. This will be worth it in the long run as it’s better to increase employee development with one person, than train and turn over multiple.
For example, say a company wants someone with a graduate degree and a minimum of ten years of experience. This is a tall order, and they will need to offer those who can meet these requirements more than what other companies in order to win them over.
Show Advancement Opportunities
When an employee does their job well, it may be tempting to keep them in the same position for as long as possible. However, this can lead to them feeling bored and unappreciated especially if they see other people who they work with moving up the ladder.
One way around this is to offer them special training and advancement opportunities that can increase their physical and emotional investment in the company. When they can see themselves moving up in the future, they will stick around and work harder, giving you a retention and productivity boost all in one.
Seminars, educational courses, and promotions are all helpful. These will increase motivation by offering a glimpse of future advancements while allowing them to increase their current skills and knowledge.
Allow Flexible Schedules
Acknowledging that employees have families and other interests outside of the workplace is necessary. By offering them flexible schedules and work-at-home opportunities, you give them ample allowance to maintain a healthy work-life balance.
After all, who wouldn’t want to be able to occasionally skip their daily commute if they can still get their job done? Work-at-home positions and flexible schedules have become especially popular with parents who have young children as they often feel torn between work and family time.
They are also considered highly desirable to those who are trying to advance their education by going to school part-time.
Retention is a Good Investment
As you can see, these four ways of reducing employee turnover rates are easy to apply to nearly any business. There might be a few initial adjustments that have to be made to get them started, but they will help save money and increase productivity in the long-run.
The main reason that they are all so effective is they acknowledge the emotional, physical, and financial needs of employees who often feel forgotten and taken for granted. This makes a company more appealing to work for and fosters long-term loyalty.