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 of new starters
You may find that your business experiences high staff turnover amongst new recruits. If this is the case you can reduce this by addressing the following:
- Recruitment and selection process
- ensure job adverts give an accurate description of the job role
- selection tests can help identify suitable applicants
- don’t try to appoint over qualified staff as they are likely to become bored and leave
- don’t be rushed into appointing anyone just to fill the role
- see taking on staff
- Staff induction
- develop an induction programme that gives a well-rounded feeling for the business as a whole
- get staff members to feed into your induction programme – ask them what they would find useful to know if they were new to the business
- encourage staff from different areas of the business to participate in the induction programme eg as part of the induction programme spending some time with new recruits explaining their team’s function within the business
- invite questions from new recruits during their induction and let them know if they have any concerns or something they are unsure about that they can come to you or any member of staff for help at any time
- see induction programme: what to include
- Job training
- establish a training schedule that gradually introduces the new recruit to various tasks their role will require – don’t overwhelm them with everything at once
- use a buddy system where a new recruit is partnered with an existing member of staff - this can be useful for on the job learning
- the line manager should monitor the new recruit’s progress
- see training your staff
How to reduce staff turnover of longer-term employees
If your business suffers from the loss of employees that have been with you for a while then you may need to look at wider issues such as business culture, business organisational structure or management style. Engaged employees are less likely to leave an organisation. Some of the following methods may help reduce staff turnover in your business:
- Management support - staff that are supported by you will feel valued and motivated within their job roles.
- Leadership – show clear leadership so employees know what direction the business is going in and let staff know how they can contribute.
- Business culture - look to develop a culture within your business that can help foster a happy and productive workforce such as building trust, improving communication, valuing staff feedback and providing opportunities for staff development.
- Share control – give staff the power to make some decisions themselves rather than imposing control and restrictions. This can also help build trust and staff engagement.
- Thank your staff – ensure you thank your staff for a job well done to let them know they are valued and appreciated.
- Staff feedback – establish employee voice in your business enabling them to highlight concerns or suggest improvements.
- Pay rates – check that your pay rates are fair and competitive, see set the right pay rates.
- Equal opportunities – make sure that opportunities for training, incentives and promotion are open to all staff.
- Diversity – encouraging diversity in your business can have a positive effect highlighting that differences are embraced and welcomed and that no one is discriminated against.
- Communication – clear communication and consultation within the business engages staff, reassures them and prevents suspicion and rumours.
- Discipline and grievance – you should have proper disciplinary and grievance procedures in place and you should apply them properly and effectively.
- Performance management - link employee's personal objectives with overall organisational goals so that staff know how their role is important to the overall success of the business, see managing staff performance.
- Training and development opportunities - give employees control over their personal development and encourage ways in which they can develop eg through training or experiencing other roles within the business.
- Job role diversity - ensure the tasks your staff carry on a daily basis aren't mundane and repetitive. By introducing a variety of tasks you can maintain staff interest and motivation.
- Working conditions – do you provide suitable working conditions such as work spaces, kitchen facilities, toilets, rest areas?
- Working hours – is there a need to reorganise working patterns, offer flexible working, job sharing or working from home?
- Staff incentives - you may want to consider different incentives for staff including individual or team productivity bonuses, performance-related pay, non-financial incentives, eg healthcare provision, flexible working, additional leave, attractive pension arrangements.