How Do I Reduce Employee Turnover?

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  • Written By: G. Wiesen
  • Edited By: Heather Bailey
  • Last Modified Date: 03 November 2019
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There are a number of ways in which you can reduce employee turnover, and you should consider different options to find the methods that best suit your company. You can begin with the hiring process itself and ensure that you hire candidates who are a good fit with the overall philosophy and culture of your company and ensure they are properly trained and in the right position. Benefits for employees are also important, and this can include anything from salary and work hours to health care benefits and non-financial rewards and bonuses. You can also reduce employee turnover by listening to your employees and ensuring they are as happy as possible in the workplace.

Employee turnover refers to the rate at which employees enter and then leave a company. This rate can be determined most easily by dividing the number of employees who leave a company each year by the average total number of employees working for that company. While no business can ever achieve a zero employee turnover rate, which would not necessarily be advantageous, a low turnover rate is often considered the mark of an effective company.


One of the best ways to reduce employee turnover is at the beginning of the employment process, when you hire a new employee. You should be sure you use the application and interview process to determine the strengths and values of a candidate, and ensure you hire people who will fit into your company. While you may not find the perfect candidate, you should at least ensure you hire someone who shares the company's values. You should also get to know your new employees to ensure you have placed them in the best position possible for their skills and interests, to keep them happy and engaged with their work.

Employee turnover can also be reduced through the pay and benefits you offer your employees. You should ensure you offer competitive salaries and compensation for your employees. You should also provide competitive health care benefits and other rewards and bonuses to reduce employee turnover. This can include financial incentives and bonuses, such as raises and profit-sharing, as well as rewards and bonuses that are non-financial, like company trips and prizes for achieving company goals.

It is also typically easier to prevent employee turnover with employees who are happy. While you cannot make everyone happy all of the time, you should at least make an effort to listen to the needs and concerns of your employees and address them as realistically as possible. If you are losing productivity due to child care issues, it may be easier to offer office child care or help pay for child care at a nearby business than to replace your employees. This may seem expensive at first, but the cost of training a new employee can be far more costly then ensuring employees are happy and loyal to you and your company.


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Post 2

While it is certainly true that making employees happy will go a long way to reduce a company's employee turnover rate, businesses need to be careful about how much leeway they give employees for child care and other personal time.

Some employees, not all, of course, will start to feel that they can come and go as they please if flexible scheduling goes too far. This can hurt the employee's productivity and, as a result, the overall performance of the company.

Post 1

In some industries, like fast food and retail sales, turnover is a fact of life and can't really be avoided.

A lot of these jobs are filled by high school or college students trying to earn some spending money or help out with education costs.

Those who need a second job to pay unexpected bills or make ends meet may also turn to these sorts of jobs because the hours are often flexible and allow the person to also work another full-time job.

Owners and managers in these industries must take into account in the hiring process that most everyone they hire will move on to a different job if or when given the opportunity.

The good thing for management is that, for the most part, there will always be people looking for fast food or retail jobs to fill those positions.

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