M Employee retention strategies play an integral role in the success of your business. Click here to learn how to reduce employee turnover.

A Complete Guide: How to Reduce Employee Turnover

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Did you know that in 2018, around 41.4 million employees in the US resigned from their jobs to work for another organization? Surprising, isn’t it? Even with a saturated job market, hiring and retaining employees isn’t as easy and affordable as everyone thinks. As a result, companies are consistently looking for ways to reduce employee turnover and ensure that the best talent stays.

So, if you have recently lost a valuable employee and are dragging your feet through a pile of thousands of dollars to find a replacement, you have come to the right place. This article will teach you how to reduce employee turnover by practicing seven employee retention strategies.

1.    Hire the Right People

Retaining employees starts with hiring employees who understand the vision of your business, from the working arrangement to the production goals. During the interview, provide the candidate with different scenarios and ask them how they would react in certain situations. Asking behavioral questions is an effective technique to test the candidate’s work psychology and ethics. Also, discuss the job description and expectations to be sure that you and your future employee are on the same page.

While conducting a lengthy job interview might seem like an extra step, it will help you in hiring the right employee and the candidate in understanding if they relate to your company.

2.    Pay Good Salaries

Offering a good salary is one of the most effective employee retention strategies. The only reason an employee leaves their bed and comfort and comes to work for a third party is that they are getting a competitive salary. Ironically, a higher salary from another company is also why an employee decides to quit. Therefore, you need to ensure that the salary package you offer covers everyday expenses, including utilities, housing, and food.

Start by doing thorough market research to make sure that you are offering an attractive salary package to employees. Note that salaries might vary depending on the current economic situation and your location.

3.    Promote a Creative Workplace Environment

No two employees are the same. While some might enjoy the social environment and corporate culture, others might prefer working in silence, sitting on their favorite chair. Therefore, provide your employees with the flexibility to work however they like in the office.

Whether it means crafting personalized working stations or creating a silent room with drawable blinds and shut doors, or a social room for gossiping and snacking, offer your employees the comfort of choice. Although a simple step, promoting a creative work environment is one of the smartest ways to reduce employee turnover and increase productivity.

4.    Reward Your Employees

Would you rather work for an employer who insults you or ignores your efforts or for someone who praises every contract that you seal, deadline you meet, and order that you compete? Obviously, the latter.

Everyone likes to be recognized, appreciated, and encouraged to work better. So when an employee does something right, reward them. The easiest way to do this is by giving them a certificate to highlight the milestone or raise their salary. Even a pat on the back will show them that you appreciate their work and consider them a significant part of your organization. This will not only help in reducing employee turnover but will also create a positive environment that bolsters employee satisfaction, happiness, creativity, and hard work.

5.    Give Competitive Benefits

From medical insurance to transportation and educational benefits, employees want companies to provide them with benefits other than a laptop and a good salary. They want to feel special and smart about their decision. The best way to do this is by providing competitive benefits.

You can start by doing market research to learn what your competitors are offering. Once you have a list, either offer the same perks to attract hardworking employees or introduce customized benefits. A personalized competitive salary package will allow employees to select a handful of perks, making them feel valued and ensuring they stay.

6.    Show a Clear Career Path

When employees feel stagnated in one job with no increments for too long, they will start looking for a job elsewhere. The reason that they accepted your job offer was that they saw a good opportunity. Thus, it is your responsibility to provide them with new learning opportunities and career growth. You can give them new projects or organize workshops to improve their skill set.

7.    Conduct an Exit Interview

The harsh reality of all the employee retention strategies is that the employee will leave one day no matter how well you do. Over the years, you train and polish an employee to become a better professional, but sooner or later, they might come across a better opportunity elsewhere; a position that you are currently not in the state to offer.

Therefore, your job here is to conduct an exit interview and wish them good luck. During the exit interview, ask the employee questions about their work experience, highs and lows, pain points, other employees they connected with, and most importantly, recommendations for improvement. Understand that every employee will have a different experience in your organization, so their suggestions would differ from others. Listen to the recommendations and use them to improve your work culture.

Final Words – Pay More Attention!

When it comes to employee retention strategies, there’s a misconception that offering high salaries is the best way to retain employees. However, because reducing employee turnover is a never-ending process, as a business owner, you can not eliminate the risk entirely.

Implement the aforementioned employee retention strategies to reduce the employee turnover rate in your company and to promote a positive and creative working environment. Remember that employees start searching for other opportunities when they feel they aren’t appreciated enough, or there’s no room for growth. Therefore, it is your responsibility to understand the needs of your employees and connect with them to make them feel involved in your company’s success.