A company with a high staff turnover is not a successful company.
In fact, it’s thought that every time an employee leaves their job, it costs a business around $15,000 just to hire someone new, and that’s on top of their salary for the year.
You might be wondering why it costs so much – surely all you need to do is interview a new person and fill the open role, and that doesn’t cost thousands of dollars, does it?
Well, it does.
A lot of businesses employ recruitment specialists to find them suitable candidates to interview.
This is because generic job adverts can attract a lot of time-wasters, and sifting out their resumes from those who are actually suitable for the role can take days, or even weeks in some cases as hundreds of people submit an application.
Most employers don’t have time for this, hence why they pay someone else to do it for them.
The problem with this?
Recruiters tend to work on commission, and some of them demand a large payout (usually a salary percentage) if someone they find gets hired, and that’s why it costs so much to hire a new person.
That’s not to mention the time needed to train each new recruit – time that often impedes on the every day running of a business and that can have a negative impact on work that needs to be done.
So, with all this in mind, keeping hold of the staff you do have is essential, but how exactly do you minimize a high staff turnover?
1. Benefits and Perks
For some people, a salary comes secondary to the culture of a workplace and the benefits it offers.
More and more people are realizing the value of doing a job they enjoy and having a good time whilst they’re doing it.
If you don’t already, it’s well worth implementing a comprehensive benefits package that makes your business a place that people like to work and want to stay at.
Healthcare is top of the list.
COVID-19 has shown how quickly things can turn, and having support in place is vital if something goes wrong.
Employees take comfort in knowing should they become ill, they’re protected financially and their families won’t suffer as a result.
If you don’t already offer healthcare, it’s high time you thought about it.
There are many different types of healthcare packages out there, with many employees valuing dental care, GP appointment access, vaccinations like the flu jab and family friendly plans.
In addition to this, offering employees paid sick leave has been proven to reduce absenteeism and have an overall positive effect on staff (plus, less staff will get sick if those who are infected stay away until they’re no longer contagious).
Not only this, offering paid sick leave will – by default – reduce presenteeism which is when an employee is at work, but their productivity is extremely low.
This could be due to a range of reasons such as personal life stressors, but a lot of the time it’s caused by being sick.
Offering paid sick leave as a benefit your employees can take advantage of will help them recover from an illness faster and enable them to return to normal quicker.
If you don’t, they may feel like they’re expected to turn up when they’re sick and work at the same pace as when they’re healthy.
Doing this could cause tension between employees who don’t want to get sick and those who feel like they have to turn up to avoid getting berated by management – all of which may be reasons someone might seek employment elsewhere.
Other perks include above-standard annual leave, flexible working hours, a comprehensive wellness program, bonuses and even free coffee.
No one wants to be coddled like a child, but likewise, never getting acknowledged for hard work is just as unpleasant.
Staff reward and recognition fit into the positive reinforcement category, and this is a proven way to boost morale and encourage people to stay.
Something as simple as highlighting a small achievement through a pat on the back or a supportive message, giving shoutouts once a month at the office-wide meeting, or offering employee rewards such as an employee of the month prize are all things that encourage staff to try harder and improve the quality of their work.
Positive reinforcement works the same way for adults as it does for children.
Not only will your staff feel like you care about what they’re doing, it shows them that you’re taking note and willing to congratulate them for their achievements, therefore making them feel valued.
Valued employees stay put; go figure.
Career progression is important; very important.
LinkedIn reported that 94% of employees would be more inclined to stay at a company if they felt like their employer was investing in their career.
That means almost all of your employees are likely to leave if you don’t offer them the chance to progress.
Sure, a pay rise is part of it, but most employees look for more responsibility and the opportunity to learn a new skill that will be beneficial to their career in the long term.
As an employer, making sure your employees feel like they have somewhere else to go beyond their current role is essential to keeping your staff working for you.
Whether it’s putting them on frequent training courses, drip-feeding them more responsibility over time, or promoting them to a new position – giving them hope of being better and showing them you recognize their life goals is key to preventing them from leaving.
If you’ve noticed a high staff turnover at your business, it could be because you’re not offering your employees what they really want.
Remember, if you don’t look after them, someone else will, so make sure you invest in them.
Failure to do so will result in them leaving, and that will cost you a lot of money in the long run.