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Running a business can be difficult, and there can be many different aspects of running a business that you need to stay on top of at all times. One of these is your employee turnover rate. If you have a high employee turnover rate, it can be highly detrimental to your business overall. Not only does important time have to be dedicated to continually hiring and training new employees, but it is often more difficult for your business to make forward progress when there is no continuity on big projects due to a constantly changing employee base. If you're struggling with a high employee turnover rate and want to get your business back on track, here are some things to consider.
Assess What You Offer
If you are experiencing a high turnover rate that is beginning to effect your business and business metrics one of the first things you should do is assess what you are truly offering your employees. There can be many reasons for a high turnover rate, so you need to troubleshoot to make sure that you know what your primary cause is. One of the most common reasons why employees leave a job quickly is because they aren't being compensated adequately for the work that they are expected to do. Not only can inadequate compensation lead employees to leave quickly, but it can also make it harder for you to find employees in the first place.
To make sure that this is not the issue, you need to speak to employees about how they feel about their compensation, as well as do some research about what businesses similar to yours are offering employees. Although it may seem more expensive to offer higher wages at first, it can actually save you money and stress in the long run, as having to regularly hire new employees can put a huge strain on company resources.
Offer More Time Off
Another one of the top reasons that some companies experience high turnover rates is that they do not allow their employees to have enough time off. Sometimes, having employees work overtime or come in early or late to finish projects is understandable, and sometimes necessary when you are experiencing staffing issues. However, it can hurt your company's morale, and ultimately cause your employees to leave and seek out a job where they can have a better work-life balance.
By looking at your policies and also taking into account how many hours you ask the average employee to work in a week, you can get a sense of whether or not you are requiring too much. Beyond that, it can also be beneficial to assess your call off policies, and how many sick or vacation days you allow your employees each year. Even though it may seem as if less work will get done if you allow your employees to have more days off, the reality is that if they have more time to relax and have a better work-life balance then they will tend to be more productive during work hours.
Make Good Communication a Priority
Other than inadequate compensation and too many hours of work, the top reason that employees leave jobs is that there is poor communication, and poor interpersonal relationships. When there is a lack of proper, healthy communication at a workplace, it can lead to misunderstandings, hurt feelings, and higher levels of stress all around. Not only that, but if there is a lack of good communication between staff and management, it can lead to employees feeling under-appreciated very quickly. To ensure that this isn't the issue that's driving your poor employee retention, it can be beneficial to educate yourself and your employees about what good communication skills are.
So often, many will talk but not listen as well as they should. By making sure that you are teaching employees not only the importance of listening, but also how to use active listening to build better communication you can help them to create stronger bonds with each other, and with you as well. Not only that, but when there is better communication it also often improves the quality of work that gets done, as well. Some key things that are important when practicing active listening are making good eye contact, as well as repeating phrases back to the speaker occasionally, to show that you are absorbing what they are telling you.
Hire From Within
Another way to help reduce employee turnover rates is to show them that you are willing to invest in them, and that you can allow them the opportunity to grow at your business. One of the best ways to do this is to hire from within when you need to fill important positions. When you hire from your existing employees for important roles within the business, you can show them that you want to help them advance their careers, and that you are willing to help them reach their career goals. This can not only help them feel more loyal to your business, but also excited about the opportunities that they can have with you, and more willing to go the extra mile at work.
Offer Career Opportunities and Education
Along with hiring from within for important roles, offering career advancing opportunities like tuition reimbursement can be another great way to show your employees that you are ready and willing to invest in them and their future. Educating your employees in fields that are related to the work that your company does can be a great way to make sure that you are not only investing in your employee's futures, but also that you will get the best possible candidates for the jobs within your company. By offering things like training courses and tuition reimbursement you can show them that you value them and see their potential, and will have a much easier time retaining quality employees.
Know That You Set the Primary Example
When it comes to employee turnover rates, there can be many causes for a high one. However, what many don't realize is that management has a direct impact on turnover, and employee attitudes towards the company as a whole. The behavior of management not only has a lot to do with how employees feel towards them, but also how employees choose to act.
Managers may not always realize that employees will frequently model their behaviors and attitudes towards the business and work being done. Because of this, it is essential to be aware of the fact that you are setting an example for all employees. By being respectful, working hard and taking other's complaints and issues seriously, you can help ensure that you are setting the right example and inspiring others to be kind to each other and work hard, too.
Some Last Thoughts
There can be many things to juggle when running a business, and because of this it can be possible to lose sight of some aspects of your business even if they are important, like keeping your turnover rate down. While dealing with a high turnover rate may be stressful, the good news is that there are many things that can be done to improve your turnover rates and turn your business around.
Related: Helpful Tips to Encourage Your Team to Become More Self-Sufficient