Competitive salary and benefits, flexible schedule options, and tuition assistance are three basics in employee retention. Especially for millennial employees, these are the holy grail for recruitment and reducing employee turnover. But, employers can reduce employee turnover in many other ways. (If you think these read like the Golden Rule, you're right, they do.)
Tips for Reducing Employee Turnover
Reducing employee turnover is dependent on the total work environment you offer for employees. These recommendations about reducing employee turnover are also common-sense, basic and incredibly hard to find in organizations today.
- Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point.
- At the same time, don't neglect to hire people with the innate talent, ability, and smarts to work in almost any position even if you don't currently have the "best" match available. Hire the smartest people you can find to reduce employee turnover.
- Offer an attractive, competitive, comprehensive benefits package with components such as life insurance, disability insurance and flexible hours. I'll never forget a young employee whose stated reason for accepting our job offer was the availability of our 401(k). And, my research on millennials and money indicates that they do not want to repeat the mistakes of their parents. Better benefits = reduced employee turnover.
- Provide opportunities for people to share their knowledge on-the-job via training sessions, presentations, mentoring others and team assignments. Employees like to share what they know; the act of teaching others ensures the employee's own learning.
- Demonstrate respect for employees at all times. Listen to them deeply; use their ideas; never ridicule or shame them. Via your communication, share that you value them.
- Offer performance feedback and praise good efforts and results to reduce employee turnover.
- People want to enjoy their work. Make work fun. Engage and employ the special talents of each individual.
- Enable employees to balance work and life. Allow flexible starting times, core business hours and flexible ending times. (Yes, his son's soccer game is as important as work.)
- Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible. Involve them in the discussion about company vision, mission, values, and goals. This strategic framework will never "live" for them or become "owned" by them if they merely read it in email or hanging on the wall.
- Recognize excellent performance, and especially, link pay to performance to reduce employee turnover. Your key employees are motivated when their above-average efforts are recognized and rewarded.
- Base the upside of bonus potential on the success of both the employee and the company and make it limitless within company parameters. (As an example, pay 10% of corporate profits to employees.)
- Recognize and celebrate success. Mark their passage as important goals are achieved.
- Staff adequately so overtime is minimized for those who don't want it and people don't wear themselves out.
- Nurture and celebrate organization traditions. Have a costume party every Halloween. Run a food collection drive every November. Pick a monthly charity to help. Have an annual company dinner at a fancy hotel.
- Provide opportunities within the company for cross-training and career progression. People like to know that they have room for career movement. This is a serious deterrent to employee turnover.
- Provide the opportunity for career and personal growth through training and education, challenging assignments and more responsibility.
- Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd.
- According to research by the Gallup organization, encourage employees to have good, even best, friends, at work.
Now that you have the list that will reduce employee turnover, why not work to make your organization one of the few, the best, that truly honors and appreciates employees. If you treat your employees wonderfully, you will seriously reduce employee turnover and employee complaints.