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Tips for Minimizing Turnover and Retaining Employees

Successful employers listen to their employees and understand why employees leave to pursue careers with other companies. However, there are many misconceptions that employees only leave companies to obtain higher pay. Educating managers and management about why employees leave companies can dramatically reduce turnover rates.

 

The following are some of the top reasons why employees leave companies:

  • Employees sometimes do not feel a connection with their jobs.
  • Employees sometimes feel the workplace or the job simply were not what they expected.
  • There is little feedback or coaching.
  • Employees felt unrecognized and devalued for their work.
  • There are not enough advancement and growth opportunities.
  • The employee does not have the confidence to trust his/her senior management leaders.
  • Employees feel over-stressed from working too much or not spending enough time on their personal lives.

Turnover costs companies money. Estimates show that it takes nearly three times an employee’s salary to replace him/her. These costs include lost opportunities, recruitment, lost productivity and severance payments.

Here are some other mind-boggling statistics to share with your management team:

 

  • Nearly 50% of people that are recruited into a company leave within two years.
  • 70% of companies report that turnover costs them money recruiting, hiring and training replacement employees, in addition to having current employees work overtime until the vacant position is filled with a qualified employee.
  • 1 in 4 new hires leave a company within six months.
  • 50% of companies experience regular issues that relate directly to employee retention.
  • 70% of companies report having problems replacing staff.

 

To help boost retention rates, companies should consider implementing one or all of the following methods:

 

  • Training – Train employees and help reinforce their sense of worth and value. Well-trained employees are likely to feel more successful as they achieve their goals.
  • Mentoring – By implementing a mentoring program, companies can offer employees a goal-oriented feedback system. By pairing an experienced employee with a new employee, companies can help boost competencies, feedback and provide an individualized career development plan.
  • Positive Culture – If a company focuses on incorporating a positive culture, employee turnover decreases.
  • Communication – Every employer should focus on having employees build their communication, offer their opinions and suggestions and understand that management values feedback.
  • Compensation and Benefits – Employees appreciate companies that show them they care by offering healthy compensation and benefits packages.
  • Referrals and Recruitment – Have current employees offer referrals and hire from within the organization.
  • Growth Opportunities – Companies should offer software, workshops and other tools to help boost employees’ performance and confidence in themselves. Employees also require some job challenges to help them expand their knowledge within the field. Employees are likely to stay with a company longer if the organization invests in their future and career development.
  • Coaching and Feedback – Companies should regularly give employees coaching and feedback, which ensures that employees align with company goals and meet expectations.
  • Value Employees – Employees that feel companies value them go the extra mile with completing their job responsibilities.
  • Work and Life Balance – Help employees create a work and life balance by accommodating telecommuting, flextime, extra holidays, etc. Employees that are happy and healthy are more productive.

 

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