Employee turnover can be one of the most expensive issues that any organisation has to deal with, and subsequently minimising it can result in a number of benefits.
By reducing employee turnover you will not only save money for your organisation, but you will build a strong sense of community and motivation amongst your employees. Happy and motivated employees deliver consistently better results.
A common mistake made by employers is to emphasize financial benefits and pay rises, thinking that these benefits are all that is required to maintain an employee’s interest and reduce turnover. However, the modern employee cares about much more than just money. Even if their true desires are hidden underneath.
Finding non-monetary benefits for your employees to reduce turnover rates will not only keep them happy and motivated, but also improve your bottom line.
With that in mind, here are five powerful tips that will help you reduce employee turnover without spending more money.
Find the right people in the first place
When you want to create a team that is the most beneficial for your company, you need to take the proper amount of time right off the bat to find and hire the right professionals.
Many companies use internships as a testing period to see if an employee is going to be a good fit for the organisation. However, when you are trying to build your team quickly and do not have the time for internship programs, or are hiring for a more experienced position, it is very important to look at all of your potential employee's critical hiring characteristics. This will give you a good idea of the character of the professional you are thinking of adding to your team.
One of the biggest characteristics you should look for in a new team member is their willingness to buy into your organisation's vision. If they have conflicting views or goals, it will be very difficult to work together to create the vision you have in your mind and heart.
Ask yourself these questions - Do their references check out? Will they be a cultural fit for your organisation? Do they have the skills and experience to deliver the outcomes you are looking for?
Hire and grow leaders
There is nothing like a great leadership structure in an organisation to help deliver outstanding results. No matter how big or small your company is, you need to make sure that you are hiring leaders that will be able to influence your corporate culture in a positive way.
Having your employees attend leadership programs and use other educational tools will help to grow them into leaders that can take your business to the next level. When you work hard to create leaders in your organisation, you are making an investment that has a snowball effect - resulting in more leaders being developed from within.
Make work fun
No one is going to be passionate about a job that is boring and unexciting. Your employees need to feel like going to work every day is an adventure. Get into the minds of your employees and organise activities that will resonate with each of them.
A pool table or old arcade machine in your break room could make a huge difference on the entire culture inside your office. Or while some industries require strict dress codes, if you are part of a more creative and liberal field, let your employees express their style by dressing the way they want. Planning company activities like corporate getaways or golf tournaments can also be a fun way to give your employees something exciting to look forward to. Also, an open office space is another fun way to create an environment where employees can talk, joke, and get to know one another while getting all of their work done.
When work is fun, employees will be more excited to come in and work hard.
Offer attractive benefits
Every full-time employee is going to expect some form of benefits. However, there are certain benefits that can keep your employees very loyal to your company.
Corporate ski and golf passes are a great idea if your employees are adventurous and sporty. Or you could pay for your employees' gym memberships. Not only will they be happy with this new benefit but they will also be more alert and active at work due to their healthy lifestyle.
A nice new laptop could be an expensive yet attractive benefit for someone who loves tech, or a couple of extra days holiday during the year might be a low-cost way to motivate the avid travellers and family oriented employees in your company.
Just remember, if you are taking care of your employees, they will take care of your company. Offering these innovative benefits will cost much less than the amount of money you will earn through the devotion of your happy employees.
Don't rely on outdated performance reviews
In the 90's, there was a corporate culture that was obsessed with numbers and performance reviews. However, since that time, companies have found that this type of scrutinization on employees hurts the company more than it helps it. Running a fine-tooth comb over all of your employees' numbers and reviews will leave them anxious and full of contempt toward you as an employer.
These type of fear-based reviews never work as well as other types of positive reinforcement. Instead of focusing on all of the hard numbers from your employees, focus more on their accomplishments, goals and values alignment - the soft stuff. Use a regular cadence, such as every quarter, to encourage employees to set their own goals and measure their performance in collaboration with a manager. These self-set goals will increase the likelihood of action.
Treating your employees as equals is always a better idea than trying to intimidate them with performance reviews that really don't make that big of a difference in the long run.
People leave organisations for a number of different reasons. So no matter what organisation you operate, employee turnover is going to be something you have to deal with.
But if you can focus on finding great talent, making work fun, offering attractive non-monetary benefits, and empowering your employees to make decisions, you will be able to minimise its effects.
What do you do to reduce employee turnover in your business?