Things your business can do to help reduce staff turnover

Whatever kind of business you run; your staff are likely to be the lynchpin of it. They are what keeps your wheels turning, and so it is important to keep hold of them in order to be successful.

Recruiting for new staff and training them up takes time and money, and you do not want this to be wasted if they soon decide to move onto pastures new.

That is why reducing staff turnover can be very important. It can save you money, ensures your business is more consistent and allows you to hold on to the great talent that can help to drive your business forwards. In this article, Workplace Refreshments take a look at the factors that can affect staff turnover and find ways in which you can try to reduce it.

Calculating staff turnover

To understand whether your staff turnover is a problem, you first need to know what it is. This can be done by adding together the number of employees that you had at the start of the year and the number that you have at the end. Then divide this figure in half to find the average number of employees in a year.

You should then divide the total number of leavers over that year by the average number of employees in a year and then multiply the number by 100.

The final total is your yearly staff turnover in percentage form. According to benchmarking studies, the average turnover rate is around 18%, which gives you an idea of whether your figure is particularly high or low. Once you are aware of the rates, you can look at the things that you can do to improve them and re-calculate 12 months later to see what impact has been made.

Development opportunities

One of the main reasons that employees leave a business is because they do not feel that they have room to grow. Most people want to develop their skills, move on to new challenges and climb the corporate ladder, but if they feel that there is something stopping them from doing this in your business, they are likely to move on to another business where they feel there might be more opportunities.

It is therefore important to find new ways in which you can allow employees to develop, even if there may not be new vacancies to move into. This could be through additional training courses, new responsibilities and transparent policies.

If, on closer inspection, you feel as though there are many employees that have had their prospects limited, it may be a sign that it is time to restructure your organisation to allow more growth.

Rewards and recognition

We are all in need of a pat on the back from time to time, but this is often something which is neglected at work. Whether it is on an individual basis or as a group, it can be very important to recognise a job well done in order to avoid demotivating people. There are many different ways that you can reward people, such as ‘employee of the month’ awards, early finishes or maybe a celebratory lunch for a team that has smashed their targets.

Something like a free meal or party can feel more meaningful for many staff, as it can appear that more effort has been put into the reward, which has a direct link to how appreciated staff members feel. Having a sense of value within a firm can directly impact motivation levels, productivity and loyalty, so a buffet in the boardroom may not seem like much to you, but it can be huge to those that it is saying thank you to.

Staff perks

Many business owners’ shudder at the thought of staff perks as it often sounds expensive, but it doesn’t have to be. The automatic assumption is that it needs to take the form of a pay rise or bonus, but many studies have shown that staff would value smaller, regular perks than grand gestures.

That means something as simple as taking Friday afternoon off, or having a party at the end of the quarter can do just as much good when it comes to keeping people in the business.

Company culture

No matter what work or pay you offer, if people do not like the culture of a company, they are not likely to stay there for very long. People need to feel happy at work given the amount of time that they spend there, and so negative atmospheres and people it is difficult to build relationships with can all contribute to a high staff turnover.

One way to overcome this is to try and create situations where people are able to feel open and relaxed and where relationships can be forged. Bringing in cakes to celebrate the end of the week or organising a staff breakfast can help to bring people together and create a healthy and collaborative atmosphere that people will want to remain a part of.

Listen to your employees

The best people to help you understand your employee turnover rates are your employees themselves. Provide them with the opportunity to give you feedback on what it is like to work within the business, focusing on both the positive and the negative.

This should be done on a regular basis to help you identify trends and give you the opportunity to deal with anything that might be an issue. If employees are able to provide feedback anonymously, they are more likely to be honest, and you can get a clearer picture of what is happening without anyone fearing recriminations.

When staff leave, you not only need to find a replacement, but you also need to cover the gap that they leave and spend time training a new staff member up to their level. This is not an easy task, especially if the person you have lost is a valuable member of your team, so it is vital that you spend time looking at ways to make your business an attractive place to work.