Reducing Turnover: Strategies for Employee Retention
According to Gallup research, over half of U.S. employees are open to leaving their current employers and are actively seeking a new role. Turnover, which can be defined as the rate at which employees depart a company and are replaced by new hires, has been on an upward trajectory since 2018, when the average turnover rate was nearly 10% lower than it is today.
Unfortunately, voluntary turnover costs U.S. businesses a collective $1 trillion yearly. Experts estimate that replacing just one employee can cost as much as 1.5 to two times their annual salary. This figure may not even factor in the cost of the knowledge and innovative ideas lost when an experienced employee leaves.
When your organization becomes a revolving door, it can threaten workforce stability and the ability to meet key goals and objectives. Human resources professionals must strategically focus on reducing turnover to avoid the high cost it presents. If you’re wondering how to retain top talent, consider these concrete strategies you can implement today to improve employee retention across your organization.
Key Strategies for Reducing Turnover
Although tackling turnover can be daunting, the good news is it’s entirely possible. Gallup estimates that 42% of employees who have left their jobs say that something could have been done to prevent their departure. Here are four actions your team can take to start increasing employee loyalty and retention today.
Creating a Positive Work Environment
One crucial aspect of creating a positive and supportive workplace is acknowledging employees for their hard work. Workers who receive authentic and personalized recognition are 45% less likely to leave their jobs, underscoring the importance of ensuring that they feel appreciated.
Additionally, you may want to work on building a more inclusive culture where everyone feels welcomed and accepted. This can involve promoting employee resource groups, celebrating cultural holidays, or offering training to help your staff recognize and manage their unconscious biases.
Offering Competitive Benefits
Some 30% of employees say additional benefits may have kept them from leaving their employers. Though compensation can help raise employees’ satisfaction levels across the board, HR professionals need to evaluate their total rewards, which describes the value of financial and non-financial pay, incentives, and benefits.
For example, many employees appreciate wellness benefits, such as gym memberships and meditation rooms. Others may enjoy more flexibility in their work hours or locations. It’s important to find out what benefits your employees would prefer and offer those that fit within your budget.
Providing Career Development Opportunities
Offering learning and career development opportunities can help your company stand out and make working for you more appealing to candidates. Data shows that among Gen Z college graduates who have recently entered the workforce, 63% say that developing advanced skills is essential to their definition of career success.
There are several ways you can apply this knowledge in your organization. Before offering development opportunities, take the time to map out clear career paths for each position in your company and communicate them to employees. This will help them see they can have a future in your organization and may inspire greater commitment.
Additionally, identify and communicate the skills employees need to obtain promotions and progress along their paths. Consider offering mentorship programs and training opportunities with more experienced staff or outside experts to help them acquire and hone those skills.
Enhancing Manager-Employee Relationships
When asked what their companies could have done to prevent them from leaving their jobs, 21% of employees said they needed more positive interpersonal interactions with their managers.
To encourage these kinds of interactions, you must focus on building a culture of trust and open communication where employees feel comfortable sharing their honest thoughts and ideas with higher-ups.
If you currently use a yearly review model, consider having managers offer more frequent and regular feedback through weekly or monthly coaching sessions. These sit-downs can foster positive interactions as managers recognize employees for a job well done and talk through any roadblocks they may face.
Practical Steps to Implement Retention Strategies
Employee turnover is a complex issue, and knowing where to start your improvement efforts can be difficult. Some practical steps you can take toward building a talent retention strategy to reduce costly turnover in your organization include:
Starting Small
Getting quick wins, such as improving onboarding or recognizing employees, can boost morale in significant ways and motivate you to keep going
Leveraging Data
Using data to inform long-term policies and measure the success of initiatives can help keep you moving in the right direction
Building the Right Culture
Fostering a culture of continuous feedback can help you adapt strategies as employee needs evolve
By taking these important steps, you can right the ship and improve your talent retention.