Control staff turnover

Reduce staff turnover

Reducing staff turnover helps to minimise the costs and negative impact of unwanted and unplanned resignations. You can help limit employee turnover via staff consultation, succession planning, performance management and staff incentivisation.

How to reduce staff turnover

A good recruitment and selection process can help reduce the turnover of new starters. But if your business suffers from the loss of long-term employees then you may need to look at wider issues such as business organisational structure or management style. Factors that may contribute to higher employee turnover might include:

Consulting staff and succession planning

You can be proactive about some things and prepared for others. Consider the following measures:

  • Employee consultation - consult regularly with staff about general morale and how satisfied they are with their work and working conditions. See how to inform and consult your employees.
  • Succession planning - put together and regularly review your plans for covering and replacing leavers, and training and inducting new starters.

Managing employee performance

People are likely to want to work for you if your business has a reputation for treating staff fairly and provides support, opportunities for career development and motivation. Ensure your staff receive regular feedback on their performance - see managing the performance of your staff.

It is important that your management are fully trained to deal with their own job and all management issues, such as proper disciplinary and grievance procedures. Managers will also need support for their decision making.

Download Acas guidance on front line managers (PDF, 660K).

Employees must have personal objectives that fit in with your business and understand the importance of their contribution. Any employee personal development plan should first be approved by management.

Incentivising key staff

You may want to consider different incentives for retaining those staff with the key skills and attributes important to your business. These may include:

  • individual or team productivity bonuses
  • performance-related pay
  • non-financial incentives, eg healthcare provision, flexible working
  • attractive pension arrangements

See how to implement staff incentive schemes.

You could provide a reliable and fast system that allows employees to offer ideas for improvement at work and management response. Encourage feedback and ideas from employees.