The Watercooler

Workforce Stability: Strategies for Reducing Turnover and Retaining Talent

Turnover is the rate at which employees leave their jobs. Retention measures how successful a company is at keeping employees.

Employee turnover and retention impact a business’s products, services, and customer relationships:

  • Employers lose time and money when roles remain vacant.
  • Productivity, employee engagement, and morale decrease while remaining team members pick up the slack.
  • Hiring, onboarding, and training new hires require more resources than retaining employees.

Employers must understand the factors causing employee turnover and take action to increase retention and stay competitive. The following information can help.

Common Causes of Employee Turnover
The following factors can contribute to employee turnover:

  • Unattractive workplace culture
  • Increased work demands
  • Poor management

Common Factors Impacting Employee Retention
Three main factors influencing employee retention include:

  1. The economy: A good economy generally means there are plenty of jobs available for employees to find new opportunities. In contrast, employees tend to remain in their roles during economic uncertainty, when fewer jobs are available.
  2. The company: Workplace culture, compensation, colleague and manager relationships, job duties and responsibilities, and growth opportunities affect how long employees might remain.
  3. The employees: Employees might leave to go back to school, change careers, relocate, or travel the world.

Benefits of Employee Retention
Employee retention provides the following benefits:

  • Stronger employee engagement
  • Increased productivity
  • Greater employee morale
  • Preservation of institutional knowledge
  • Positive customer relationships
  • Cost control

Tips to Uncover the Causes of Turnover
Consider the following questions to help uncover the potential causes of employee turnover:

  • Has there been a significant organizational disruption, such as a merger, acquisition, or change in leadership?
  • Are there economic conditions that could be affecting employee decisions?
  • Have there been significant changes in policies or procedures that might influence an employee’s work environment?
  • How do employees feel about the company and their role in it?
  • Are employees experiencing challenges or opportunities outside of work?

Answering these questions can provide insight into employee engagement, what employees are saying about the company, and what competitors might be doing differently to reduce turnover.

Tips to Strengthen Employee Retention
Focus on what matters most to your employees to increase retention:

  • Competitive compensation: Offer income and benefits slightly above the market average.
  • Equity: Provide fair compensation.
    Challenging work: Offer opportunities for skill enhancement and growth.
  • Employer-employee relationships: Show that employees are valued and supported.
  • Flexibility: Let employees modify their schedules to accommodate their personal lives while finishing tasks on time.
  • Professional development: Provide mentorship programs, job shadowing, cross-training, and career development programs to encourage employee tenure.
  • Recognition: Express appreciation for quality work.

Key Performance Indicators for Employee Retention
Turnover rate is a top key performance indicator (KPI) for employee retention. To determine the number of employees who voluntarily leave during a given time, divide the number of voluntary separations by the total number of employees.

The following KPIs can provide greater insight into employee retention:

  • Tenure rates
  • Average earnings
  • Absence rates
  • Engagement survey data
  • Exit interviews

Get Expert Help Reducing Turnover and Retaining Talent
Understanding the factors that commonly contribute to turnover and retention supports workforce stability. Reducing turnover and improving retention strengthen the bottom line.

Contact your local PrideStaff office today for help with reducing turnover and retaining talent.

Related Posts:

The True Cost of Employee Turnover Across Your Workforce (and How to Reduce It)

Tired of Constant Turnover? Start with Your Onboarding Process