Imagine a loyal and dedicated workforce that is committed to staying and growing with you? Sounds like a charm, right? However, as any HR leader and decision maker would know, retaining employees is certainly not an easy task.
Especially with the rise in competition and the range of options that employees have today, they are more likely to quit on you for a better opportunity. This will most likely translate to higher costs of hiring and absenteeism for you. So, is there a way out?
The answer to that is most definitely a yes! While one can never ensure 100% retention within the workforce, companies can surely slow down the exit rates amongst employees. How to reduce the employee turnover rate is a pertinent question today, one which we have covered below.
What Causes Employee Turnover?
Organizations across the globe are trying hard to tackle one important question: how to reduce employee turnover and absenteeism? However, to devise ways for reducing employee turnover, it is important to understand what causes it in the first place.
There are many reasons employees quit organizations. Poor hiring strategies, lack of professional development opportunities, a toxic working environment, bad managers, and little to no work-life balance are all known to increase employee turnover rates. Let’s understand strategies to counter this:
How To Reduce Employee Turnover?
While it is necessary to understand the causes of high employee turnover, delving into it aimlessly is of no good. Instead, companies can take positive steps towards reducing turnover rates and markers that negatively impact employee engagement. Here are 10 innovative strategies that you can employ:
1) Hire the right people
The best way to ensure that employees don’t leave is to hire the right ones. Clearly define the job description and role and hire only the ones who fit the bill – both in terms of skill expectations and company culture.
2) Take care of employees
A golden formula for reducing the turnover of employees is to build a happy and healthy workforce. Ensure this by extending preventive health care and adequate coverage for physical and mental health ailments. Loop enables you to do this with a host of customized insurance schemes.
3) Offer a competitive salary
Poor pay scales are one of the biggest reasons employees quit. Try to make sure you are paying employees as per competitive market rates. Add in monetary benefits linked to performance to further boost their morale.
4) Reward and recognize employees
Not receiving appreciation for one’s efforts can deter employees from staying loyal. When you have a robust employee reward and recognition program in place, you can avoid this. Inculcate positive reinforcements, and critical feedback to further improve retention rates.
Interested in recognition? Learn more about 3 steps to build an employee recognition program that works
5) Offer flexible working
One of the biggest trends since the pandemic is flexible working. Instead of tying employees to the desk for long work hours, introduce virtual, flexible working systems. This will enable employees to work comfortably and thereby perform better.
6) Provide development opportunities
Another big reason employees leave is stagnancy. To avoid this, enable your workforce to amply learn and grow at work. This will help the organization in return as well as help you tackle high retention rates.
7) Focus on onboarding
First impressions are the last impressions they say! While not entirely true, how you welcome employees to work can do wonders. Have a structured onboarding process that enables new joiners to know all that the company does and how they fit in. This will prevent them from feeling lost and connecting better with the company’s vision.
Take it one step further with a workplace buddy.
8) Check the quality of managers
Bad managers are one of the biggest reasons employees leave. Train your managerial staff on people management. Inculcate the values of empathy and understanding in them. This will promote a healthy ‘pass down’ of company culture and arrest turnover rates.
9) Cultivate a sense of belonging
Purpose and belonging play a big part in employee experience at the workplace. Ensure that employees are connected and have avenues to speak their minds and have their concerns addressed. Being heard can help them feel at home and ensure better loyalty.
10) Foster inclusivity
An inclusive work culture displays that the company truly cares and functions without bias. Being associated with a responsible employer can enhance the sense of conscience in employees and help companies decrease employee turnover favorably.
5 Advantages Of Reducing Employee Turnover And Absenteeism
The above strategies can help you reduce employee turnover and absenteeism effectively. However, it also comes with allied advantages, such as the below:
1) Reduced costs
There are heavy costs and effort associated with high employee turnover rates. Once you build a loyal and steady workforce, you can eliminate the outlays related to it by a large margin.
2) Lesser time spent on talent acquisition
In addition to the costs included, it takes time to hire employees in place of the ones who left. This causes an added burden on HR and can also cause temporary downtimes or anomalies in the work processes. This can be avoided by lowering employee turnover.
3) Reduced training expenditure
Training new joiners entail huge expenditure. From onboarding to expectations setting, and then giving them the time to adjust to the work could mean reduced efficiency (although for the short term) and added costs for the organization. Again, you can tackle this via decreased turnover rates.
4) High employee engagement
The efforts a company takes to reduce the turnover of employees can have a positive impact on employee engagement. It can help the workforce feel motivated and taken care of, and thereby help them perform better at tasks.
5) Positive company image
Creating an employee-oriented workplace can also help organizations improve their market perception. This, in turn, can help in attracting the right talent and building a positive company image,
Check out Loop’s Employee-centric Offerings
Now that you know about the causes of employee turnover and strategies to reduce it, it’s time to crack it.
As the first step, you can check out Loop’s employee-centric packages that include 24/7 doctor consults, free mental health counseling sessions, and more. Our offerings also include preventive health care provisions and wellness sessions that can help your employees stay fit and happy at work!
Tackle employee turnover with the help of our employee-centric health packages today! To know more, get in touch with us