Reduce Your Employee Turnover Rate

There are a few obvious and a few not-so-obvious ways to reduce your employee turnover rate. One of the most natural strategies to continue offering your workers extra incentives to stay put. This may take the form of regular raises, promotions, or simply greater day-to-day responsibilities. One of the keys to reducing turnover is understanding what motivates your staff.

A less obvious way to reduce your employee turnover rate is to ensure that your hires are well suited to their jobs. This can prove tricky since it generally takes some time to observe how a new worker is performing and whether or not he or she is a good overall fit. It may turn out that your instincts were entirely wrong about the candidate you interviewed. Some applicants are terrific actors. Others rise to the occasion for an interview, then lapse into their "normal" selves. Either way, this can wind up costing you loads of money.

Why It's Critical To Reduce Your Employee Turnover Rate

The principal reason to reduce your employee turnover rate is savings. Not only will you save the money it takes to hire and train replacement employees, you'll also save money in productivity. Every time a worker leaves it means another worker must do that job in the interim, which means the quality of both jobs diminishes. Ask your accountant to cover for a lost receptionist, and you're likely to find poorly answered phones and wonky balance sheets.

Another reason that retaining employees is so critical is privacy. The more workers you bring in, train, and let go, the greater the odds that one of your dearly departed will "accidentally" disclose company secrets to future employers. This is the case no matter what the terms of your non-disclosure and non-compete clauses may say.