Small Business Blog
How to Decrease Employee Turnover in Your Business
Each year, the number of employees who quit their jobs increases. Last year, 45 million Americans voluntarily quit — many of whom worked in the construction, hospitality and entertainment industries. Regardless of their reasons for leaving, this trend doesn’t bode well for businesses. Once an employee quits, companies must fill the vacant position — something easier said than done.
Luckily, retaining workers is relatively simple, as long as you know what’s making them leave in the first place. Below are a few areas where your business may be lacking and how you might improve, thereby decreasing turnover.
Offer Competitive Salaries and Benefits
While your employees may appreciate the workplace culture, atmosphere and the positions themselves, they’re ultimately there to earn money. Use this incentive to your advantage by offering a salary that will make your workers stay. Moreover, try to offer pay that’s just as good as or better than competitors. If the majority of your industry offers benefits packages, do so as well. These perks will minimize the chances of employees leaving to join other organizations.
Connect and Build Relationships
Another major culprit responsible for employee turnover is a lack of community or connection in the workplace. Money may retain employees for a bit, but a lack of camaraderie will eventually result in turnover. Therefore, it’s incredibly important to make yourself approachable. Get to know your employees. Then, focus on creating an inclusive, positive workplace culture. Host social events outside of office hours to give people more opportunities to develop relationships.
Try to Be Transparent
Be open and honest with your employees. Instead of asking yourself why you should tell your team something, ask yourself why you should keep it from them. Maintaining open lines of communication will show your staff that you prioritize transparency and value their opinions. Communication is especially important in industries where employees work independently, like trucking, construction and various contracting jobs. Being transparent tells your team you respect and trust them enough to involve them in decision-making processes.
Fairly Distribute Workload
Up to 50% of workplace turnover is due to employee burnout. Often, this burnout is a result of overworking. Luckily, it’s fairly easy to prevent this situation by fairly distributing workloads. Ask each employee how well they think you balance work assignments. An anonymous survey is a great way to understand how everyone feels about the subject. Moreover, meet with your team each week to discuss project progress and identify how you might better distribute tasks.
Provide Resources and Feedback
Prevent fatigue by ensuring your employees have the resources needed to accomplish their work. Make sure office technology functions correctly, and the internet speed doesn’t lag. You might also provide workers with opportunities to grow and improve their skill sets through online modules and challenges. Further, remember to give your team individualized feedback so that they know what they’re doing right and how they might improve.
Express Your Appreciation
Above all, employees long to feel appreciated. They want to know that what they’re doing matters and that they’re not just another cog in the machine. Therefore, it’s crucial to express your appreciation for them every chance you get. Verbally and publicly commend their successes. You might also reward them with bonuses or other incentives.
Analyze Turnover to Discover a Solution
The cause of turnover differs from one business to another. As a result, it’s essential to analyze your workplace to determine the reasons behind lost employees. Only then can you find and implement a solution.
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