Guide

Control staff turnover

Factors affecting staff turnover

When you run a business, it is good practice to be aware of factors that commonly lead to high staff turnover rates, so that you can take steps to reduce them.

Pay is rarely the only reason why people leave, although low pay levels are often a disincentive to stay.

Consider how your business achieves in the following areas.

Staff recruitment and induction

  • Recruiting the rght staff - are you getting the staff selection process right? Are you attracting staff that are suitable for vacant roles and the right match for your business? See recruiting staff.
  • Staff induction - how do you welcome and orientate new employees? How do you let them know where things are, what's expected of them and what they and their colleagues are supposed to do? An effective induction programme will familiarise new staff with the culture and values of your business and make them feel part of the team - see advantages job inductions.
  • Flexible working arrangements - do you recognise your employees' changing needs to achieve work-life balance? See advantages of flexible working.

Training and staff development

  • Motivation - how supportive and encouraging is your business to its employees? See lead and motivate your staff.
  • Organisational culture - what are you doing to promote a diverse and inclusive culture in which staff are aware of and committed to the business' aims? See promoting equality and diversity.
  • Matching jobs to people - are you making the best use of skills, experience and competencies, and helping staff fulfil their aspirations?
  • Staff training and development - are you investing in your staff by giving them time and opportunities to learn new skills? See skills and development.
  • Formal appraisals - how often do you give your staff the opportunity to discuss their performance? Setting measurable goals can help staff improve their performance and they can take confidence in seeing how their efforts contribute to the success of your business. See advantages of performance appraisals.
  • Effective grievance procedure - do staff know how to register a grievance and are they making use of the procedure? See handling grievances.
  • Team working - do you encourage common goals and discourage unhealthy individual rivalries?

Contracts, pay and working environment

  • Employment contracts - do the terms and conditions of your contracts encourage staff loyalty? See the employment contract.
  • Competitive pay rates and a fair, transparent pay system - are they in line with your industry? See set the right pay rates.
  • Incentives and other staff benefits - are they relevant for your staff? Can staff choose the ones they need? See implement staff incentive schemes.
  • The office environment - is the physical office environment pleasant and well designed? Are noise, light and ventilation levels acceptable?