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.