Employee turnover refers to the loss of talent in the form of workers of an organization over time. It’s the percentage of workers who leave are replaced by new employees. This includes layoffs, retirements, resignations, location transfers, and even death.
Even the best of companies struggle with high employee turnover or low retention rates, which can significantly impact their trajectory. Data suggests that the industrial sector’s average turnover rate is around 14%, whereas these rates are far higher in the service sector, where the average is more than 29%.
Here are a few tips on ways to slow down the revolving door at your company and inspire long-term loyalty in your most valued employees.
#1: Hire The Right People And Fire The Ones Who Don’t Fit
One of the easiest ways to ensure workers don’t leave is to ensure you hire the right ones in the first place. It’s crucial to define the job description and their roles clearly so that you and the candidates both know who will fit well with the company’s culture.
#2: Encourage Gratitude And Generosity
Studies reveal that when humans are given the opportunity to thrive in pro-social behavior and encouraged to connect with other employees through acts of gratitude and expressions of generosity, it curates an overall healthier, happier environment. They also gain a sense of ownership to the company, heightening their sense of loyalty, making it less likely that they will fly the coop.
#3: Offer Flexibility To Enhance Work/Life Balance
Millennials are known to crave flexible routines so that they can maintain a healthy work-life balance. Research reveals that 78% of the managers and 83% of employees accepted that flexible work arrangements, such as the ability to have slight ease around the location or working hours, results in them feeling optimistic about the company, hence improving retention rates.
#4: Cultivate A Respective And Inclusive Culture
Experts suggest that one of the key factors of retaining employees is to give them a sense of purpose and meaning. Employee appreciation letters are another great way to engage them and increase their sense of belonging and loyalty to the company.
Another vital thing to remember if companies want to cultivate a magnetic culture is to nurture respect in the workplace and work with employees who have a solid vision to reach their future goals.
#5: Give Them Opportunities To Grow And Develop
Workers today thrive for growth! In fact, a recent study drew a direct connection between high turnover rates and the number of development opportunities provided to them. If the company isn’t investing in its employees, it’s quite natural that they won’t want to stay with the company as it may give them the impression that the company doesn’t care about its workers’ journey to self-actualization.
Involve them in employee performance improvement plans and share a performance improvement plan template to help them track their growth.
Whether you’re looking for ways to kick start performance improvement for small businesses or are curious about ways to improve a company’s turnover rate, let us help you!
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