4 ways to reduce employee turnover
In today's competitive job market, it's all too easy to lose valued employees. But high worker turnover can quickly become a problem for your company for a number of reasons.
First, it's often costly. It takes money to recruit and onboard new talent, and the more resources you're forced to sink into replacing workers who leave, the less you'll have available to invest in the business or use for other purposes. Additionally, high employee turnover can impact worker morale. And too much turnover can lead to a disruption in workflow, thereby limiting your output and revenue.
All in all, it's best to avoid employee turnover to the greatest extent that you can. Here's how.
1. Make sure your compensation stacks up
Though money isn't the only thing that drives workers to seek new job opportunities, it's a big one. It therefore pays to do some research and see how well-compensated your employees are based on industry averages. If the salaries you pay leave much to be desired, you may need to rethink your compensation strategy and shift resources around to pay your workers what they're really worth.
2. Improve your benefits package
Workplace benefits are a huge motivator in getting employees to stay put. If your current package isn't all that stellar, take a look at what other companies are offering and aim to match some of those perks. You might, for example, start offering free lunches twice a week, onsite fitness classes, and time off for charity work. You might also offer a better retirement plan match, or a higher subsidy for your workers' health insurance premiums. In fact, it pays to survey your workers and ask them what benefits they're looking for, because if you're going to invest in them, you might as well put your money where it counts the most.
3. Be more flexible
These days, a growing number of businesses are granting their workers more flexibility on the job. In some cases, that means getting to work remotely, at least on a partial basis. In other scenarios, it means letting employees set their own hours or compress their workweeks to extend their weekends. No matter how you choose to be flexible with your team, the key is to grant your workers the leeway they probably expect by now.
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4. Focus on career development
The last thing your employees want to feel is that they're stuck in dead-end jobs. If you value your workers, ask yourself when your most important players last got promoted, or were given more responsibility on the job. If you can't remember, take it as a sign that you need to do a better job of helping your employees progress in their careers. You can do so by taking the time to help your workers map out specific career paths and giving them the onsite tools and resources needed to be successful. You can also offer education subsidies so that your employees can work on growing their skills outside the office.
In today's healthy job market, you can't afford to be lax on the employee retention front. If turnover is becoming an issue at your company, take the above steps -- before another resignation letter lands on your desk.
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