3 Strategies to Reduce Employee Turnover in Small Businesses
Losing an employee equals losing a valuable talent that can hinder the company’s productivity, disrupt operations, and increase costs. Every firm looks for the best talent, and once captured, it strives to retain it. However, in the fast-paced world where better opportunities can pop up anytime, anywhere, what can a firm do if employee retention isn’t up to the mark? In this write-up, we’ll discuss the top three strategies to reduce employee turnover rate.
We have also shared statistics that prove how these strategies helped other companies decrease employee turnover.
Reducing Employee Turnover: Strategies
Adding new team members is a long and expensive journey. Glassdoor survey shares that an average US-based employee spends 4,000 dollars on hiring an employee. On top of that, it takes about 24 days to do so! That’s massive, especially for small businesses! So, retaining current workers is always a desirable option. Let’s discuss how to do it;
The pandemic of 2020 has shown us another side of the world – the remote world. Many may argue that remote work doesn’t provide the kind of productivity level on-site work provides. The data have shown that when employees are offered the choice of a hybrid workspace, it reduces the turnover rate. Recent research by Officernd showed that a hybrid workspace helped reduce employee turnover by 12%.
By incorporating such strategies to reduce employee turnover rate, companies can retain their existing employees and attract more talent.
Listen to Your Workers
No workplace is ideal. Every office houses people from different mindsets and thoughts. Even all like-minded people are destined to face certain issues at some point. So, always ensure that your employees feel heard, welcomed, and respected. This means taking into account their concerns and resolving them accordingly. This would create an environment where employees come forward with their problems rather than quitting their jobs.
A study by Quantum Workplace showed that 90% of the engaged employees continued working for the next year as well. It indicates that if workers feel welcomed, they are more likely to stay longer!
Identify Key Performers
When discussing strategies to reduce employee turnover, the key performers are the primary aspect to consider. A study shows that 27% of employees leave work because they feel unappreciated.
How to reduce the turnover rate in this case?
Every business needs to have a regular feedback system. Firstly, it involves identifying and appreciating diligent employees. On the other hand, motivating and pushing the underperforming employees.
Offer rewards and visible appreciation to the best workers to motivate them to work even harder. Additionally, portray them as role models for those below average to strive for excellence.
Starting a new business can be challenging; however, there’s no more significant challenge than retaining an employee. There’re a number of strategies to reduce employee turnover rate, but they can’t be implemented at once.
When looking for ways how to reduce the turnover rate, these three mentioned strategies can be a good kickstart to the journey. These serve as a great way to reduce turnover. Moreover, these also pave the way to increase productivity and employee satisfaction and to build a loyal and robust workforce. Remember, employees are what makes or breaks any business – a good employee base equals a good company.