Turnover is a reality of every business. While periodic change can be beneficial to growth, unexpected or constant turnover is a serious problem. As a company leader, it’s your responsibility to help mitigate this issue. Today, we’ll explore three ways to help cut down on turnover and examine how they can bolster your bottom line.
Meet staff demands for new benefits
Improving employee retention helps you reduce the costs associated with hiring new employees. Benefits play a major role in attracting new employees as well as retaining top talent. In fact, a survey conducted by Harris Poll on behalf of the American Institute of CPAs found that most respondents (80%) would choose a job with a benefits package over one without it even if the job with no benefits offered a 30% greater salary.
Taking another look at the benefits you offer to make sure they are competitive with those offered by similar companies of your size and industry is a key first step to reduce the chance of losing your best performers to your competitors. According to a study conducted by Clutch, 56% of the small-business owners surveyed said they planned to offer new benefits to workers in 2019. Of the companies committed to such initiatives, almost one-third of them (30%) said they were broadening the scope of their benefit offerings to honor employee requests .
Deploy promotions carefully
More engaged employees perform better, eventually contributing to production and revenue gains. High turnover threatens employee morale – it’s difficult to offer adequate training or growth opportunities if managers and co-workers don’t stick around for long.
A well-deserved promotion can help increase retention – workers whose job titles change more rapidly are more likely to stay with the same company, according to the Harvard Business Review. Remember, promotions can come in a variety of forms. For example, initiatives like mentorship programs or partial tuition reimbursement for post-secondary students can show your commitment to professional development. Structuring this strategy so that it’s not about one person’s ascension but greater reinforcement as a team shows how much you care about your team and can strengthen their engagement.
Obtain the insight needed to address high turnover
The Bureau of Labor Statistics identified the March 2019 U.S. monthly turnover rate as 3.7%. According to WorldatWork, the annual promotion rate was 9.3% in 2016 (the most recent year for which data was available). A number of workforce-dependent demographics drive these numbers: tenure, average promotion rate, industry conditions and wage growth, among numerous others.
In a nutshell: You can’t look at just one or two of those factors and expect to instantly understand why turnover is high and know how to address it. But you do need to know what each of those factors are for your company. Armed with that insight, you will be better able to identify problem areas and develop strategies to turn them around.