Is employee turnover costing your business and your employees?

Published: 09/07/2019 | Last Updated: 06/04/2020

Is employee turnover costing your business and your employees?

In a perfect world, employees would be unfailingly loyal, but we don’t live in a perfect world and the workplace is more competitive today than it ever has been. In such a landscape, employees coming and going is an inevitability and onboarding new employees can be almost as costly as losing the experienced old hands. So, how could your business save money and heartache by reducing employee turnover?

Getting it right – The first step is obvious – make sure you’re hiring the right people. If the staff you’re hiring are not the right fit from the get-go, it’s unlikely they will stick around for the long-term and you’ll have wasted precious resources on a lost cause. Take your time during the hiring process and make sure your interview questions are perfectly tailored to suit not only the business but the available position. Environment and company culture is also crucial, so always take that into account when scouting for young blood.

Benefits – Aside from their standard living costs, employees will be much happier if they are compensated enough for their efforts that they will be able to enjoy the finer things in life. Offer a competitive salary based on similar jobs in your general area alongside competitive benefits. This will not only make them feel more valued (and thus likely to stay) but will incentivise them to work harder too.

Be flexible – In such a busy world, that work/life balance can appear unobtainable on a standard 9-5 work week, particularly for those with long commutes. That’s why offering flexible work schedules can provide such a boost to many modern workplaces. Remote working, for example, is that much more feasible today, so maybe consider giving your staff a work from home day once a week. Allow them more flexibility to live their lives outside of work and they are more likely to bring their best selves to the office.

Financial security – The mental and physical wellbeing of your employees is, of course, incredibly important, but their financial wellbeing is equally important. They are, at the end of the day, at work to make a living. That’s why it’s important to offer salary-linked employee benefits and allow your employees to be more financially resilient and independent.

Be kind – In any business, there has to be a certain balance between “the carrot and the stick,” so it’s just as important to celebrate an employee when they succeed as it is to point them in the right direction when they fail. That way they will feel respected, acknowledged and more confident in their roles. Be careful to portion out your praise, however, as it is possible to go too far.

Of course, no matter what you do there will always be employees that wish to leave either for opportunities you can’t offer them or because they fancy a fresh start. So, whilst staff turnover can’t be eliminated, it can be reduced as long as you cultivate an environment that people actually want to call home for 8 hours a day, 5 days a week.