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Five Simple Steps to Reduce Employee Turnover

High employee turnover has become a global phenomenon that unnerves employees and employers. Employers hire good employees and want to retain them to achieve their business goals. At the same time, employees feeling burnt out eventually quit their job.

Employee turnover costs employers in different ways and gives a reason to reduce in every organization. Here are five effective ways to reduce employee turnover within your company.​

Schedule Regular Meetings

After an employee is hired, it starts reporting to one immediate supervisor. Employee performance is also measured after months, and the supervisors’ assessment highly influences it. However, supervisors are not encouraged to create a professional understanding when hiring.

Employees should be provided regular meetings with the supervisors to talk about retention. HR managers should also conduct regular meetings with the employees regarding their job experience.

Schedule Regular Meetings

To keep the dialogue open and honest, the employee should be encouraged to share if they are not happy about their current role.

Regular meetings help to solve problems at the early stage and improve employees’ motivation. Moreover, random meetings also reinforce employees’ positive behavior and improve innovation and creativity.

Review Your Entire Work Environment

HR managers should refrain from assuming that they know what it will take to retain their best teammates. The equation of work has changed dramatically in the past few years. The drivers for retention today are often different from what they were in the past few years.

It’s well known in the HR industry that a significant reason for resignation is the pursuit of a better work-life balance. Employees want to feel appreciated for their contribution to the organization’s success. The pandemic proved a huge wake-up for millions of people

who reassessed the quality of their lives, and if companies want to reduce employee turnover, then they need to work on their work environment. 

Employees should be offered more flexibility with work hours and should be encouraged to take care of their families. Hybrid work environments allow employees to work remotely whenever it is required.

Pay your employees well

Below-average pay rates can have a dramatic negative impact on employees’ morale, productivity, and retention. Salaries and compensation can strongly affect job satisfaction, work performance, and retention. Pay is one of the most important factors in employee turnover. 

It is proven through many studies that “higher pay” is the most frequently cited reason for high employee turnover. By proactively increasing salaries, employee turnover can be significantly decreased.

Pay your employees well

With inflation at an all-time high and a historic labor shortage, offering competitive cash compensation is currently paramount in reducing employee turnover. Employees are stressed about opportunities with competitive pay. If employers cannot keep up, they will bleed talent.

While evaluating compensation programs, employers should ask themselves: Are they paying employees a living wage? What about a competitive wage? If they can’t afford to offer a competitive wage, are there other benefits or perks (e.g., flexible or remote work, reduced schedule, etc.) that could bridge the gap?

Employers should ensure to pay competitive salaries and full utilization of perks and benefits. The overall salary package includes base pay, commission, bonus pay, equity packages, and other monetary and non-monetary compensation.

More engaged employees mean happier employees, and happier employees mean higher productivity, the better quality of work, and less burnout.

Improvement of the hiring process.

Good employees are hard to find and even harder to retain. Employee turnover is fast becoming the primary concern for companies around the globe. A higher annual turnover rate has become a pain point for many companies. Hiring quality talent can be expensive, tiresome, and stressful. Subsequently, when the talented employee chooses to leave the company, things become complicated.

Improvement of the hiring process.

The latest method of acquiring talent warrants the use of Realistic Job Previews. This method gives candidates a 360 view of the role upfront – with both the opportunities and challenges so that they can make an informed decision about their suitability for the job.

A virtual job simulation and spotlight of real, human experiences from current employees gives candidates a true picture of the job. From the very first touchpoints with candidates and alignment with the day-to-day realities of the job to reduce first-year turnover.

Use an employee recognition platform

Employees want to feel seen and recognized within their organization. One way is to be recognized and appreciated for their day-to-day efforts at work. Gratitude helps people be more engaged and reduces their turnover. Top management and supervisors can’t do this alone, so they should empower every employee with a peer-to-peer recognition platform. Gratitude and recognition are important in helping people feel seen, and to stay at their job longer.

Employee recognition software like BRAVO is an easy, effective, and economical way to boost employee motivation and reduce turnover. This software motivates employees through public recognition. Point system of recognition software provides a quantitative

Use an employee recognition platform

way of recognizing employees’ efforts; every employee can give points to other employees to acknowledge their efforts, hard work, behavior, and results.

Recognition software is socially connected to every employee. Employees are rewarded with monetary and non-monetary things like shopping vouchers, gifts, and public appreciation. Recognition software provides peer-to-peer recognition and creates a culture of connectivity and social welfare. This software is good for improving employee recognition, engagement, and retention.

Conclusion

About 78% of business leaders rank employee retention as a critical business need. Managing employee turnover is still one of the biggest challenges for many organizations. High employee turnover inevitably leads to a whole new phase of recruitment, which is expensive and time-consuming.

As per SHRM, the entire process of recruitment, boarding, training, and lost productivity can cost a business anywhere between 90% to 200% of the old employee’s annual salary. Employee turnover, an expensive affair, can also affect the morale of existing employees.

The use of employee recognition software like BRAVO, reasonable salaries, a healthy work environment, and a good hiring process can help any company to reduce its employee turnover. Book a free DEMO to learn how BRAVO can improve your employees’ motivation and engagement.

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