What are some tips for improving employee turnover?

Before you can improve employee turnover, you must identify the reasons behind it. Based on the problems you identify, you can implement any (or all) of the following strategies to improve employee retention.

Tip: You can manage and optimize the following tips by using one of the best HR software solutions. To learn more about some of our favorite HR platforms, see our Gusto review and our Rippling review.

Prioritize your recruitment strategy.

The first step in developing a great company culture with low employee turnover is to ensure you are hiring the right employees for the job. Create accurate job descriptions, and pay attention to your recruitment process.

“If you have a significant number of new hires that ‘wash out’ quickly after training (or don’t make it through training), this is a sign you’re not choosing the best candidates for the position,” Erhard said. “Lowering turnover starts with hiring qualified employees who fit your company’s values, then creating a culture that makes employees want to stick around for the long haul.” 

Invest in onboarding new staff.

After you’ve hired the right candidates, you need to train them properly. Andrews said the first few weeks for new staff may determine whether they turn into long-term employees or leave as soon as they find an alternative.

“Invest time and resources in making sure they get a really thorough induction and are well supported in these early days,” she said. “If they feel wanted and valued from day one, they are more likely to start to develop loyalty toward the company and want to stay with you, even in more challenging times.”

Elicit and respond to employee feedback.

An important element of every successful business is great communication. Facilitate a company culture that thrives on open communication. In addition to giving employees feedback, you should ask them for it. Use meetings and employee surveys to gain insight into staff needs and concerns.

“Every company will have different challenges in this regard, but all the commonly cited reasons for quitting (e.g., poor work-life balance, workplace or management conflicts, lack of advancement opportunities, etc.) can be addressed by listening to the concerns of your employees and adjusting your policies and procedures accordingly,” Erhard said.

Engage and recognize your team.

It is important to make sure your current employees feel engaged, motivated and valued. Encourage them to take on new projects, offer training and career advancement opportunities and recognize employees for good performance. Employees who feel stimulated, valued and appreciated are more likely to stick around.

Regularly review pay and benefits.

Although employee compensation partly depends on your company’s budget, review and modify employee benefits and salaries as often as you can. The longer an employee works for your company, the more they can hone their skills and expertise – and they should be rewarded for that. Offering competitive pay and benefits can make employees feel appreciated and keep them from seeking employment elsewhere.

“It’s essential to keep your pay and benefits under review to make sure you’re offering staff a competitive reward package,” Andrews said. “If staff feel you are failing to recognize their worth and true market value, then you face the risk of them leaving you for a competitor who is willing to invest in them.”

Turn over a new leaf for your team

Most people prefer stability to constant change. When you improve your work environment, you provide that stability. A better time at work means a longer time in the role, and that means lower employee turnover. Plus, by reducing your employee turnover rate, you’ll also cut down on costs associated with labor, training, recruitment and other HR functions. Listen to what your team wants and needs, act accordingly and watch as conditions improve for both your team and your company.

By Max Freedman