Turnover is a reality of every business. Even if you could retain the core workforce with which you got the business off the ground, you probably wouldn’t want to (at least not entirely), as periodic change can be beneficial to growth.
However, unexpected, undesired turnover is a major problem. Whether it’s quality employees jumping ship due to disillusionment, pursuit of a better salary and benefits package elsewhere or forced layoffs to save the business, it’s always ugly. As a company leader, it’s your responsibility to mitigate this issue. Today, we’ll explore three major ways to help cut down on turnover and examine how they can bolster your bottom line.
Meet staff demands for new benefits
Benefits represent an excellent method through which to reduce the likelihood of turnover.Improving employee retention helps you eliminate expenses associated with new recruitment. Benefits play major roles in attracting new employees as well as retaining individuals currently on payroll. In fact, a survey carried out 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 benefits-lacking job had 30% greater salary.
Revamping your existing benefit offerings to be even more appealing can be quite effective in nipping turnover in the bud. 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 requests from their staff.
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 staff adequate training or opportunities for growth if managers and co-workers don’t stick around for long.
A promotion helps increase the likelihood of retention – workers whose job titles change more rapidly are more likely to stay with the same company, according to the Harvard Business Review. Combat the specter of turnover by eschewing standard definitions of promotion: Initiatives like mentorship programs or partial tuition reimbursement for post-secondary students can symbolize your commitment to workers’ 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 staff and can strengthen their engagement.
Stay focused on the bigger picture
When an employee leaves, other staff may temporarily need to take up the slack – taking time away from their own core responsibilities. Plus, a new hire will likely need a few months to learn the ropes before they reach peak efficiency. Retaining more employees for longer lets you avoid productivity declines that can harm revenue in the long run.
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.
PeopleStrategy’s bundled HR solution is perfect for such a situation. Through the combination of our agile eHCM platform and directly brokered comprehensive benefits services, we’ll be the partner you need to best maintain the integrity of your workforce. By increasing overall efficiency and directly providing employee benefits without the expense of a broker, the PS bundle can facilitate considerable savings.