Engage staff and reduce turnover (2024)

Staff turnover can be costly to your business. The exact costs can depend on the type of employment, the value of the employee to the business, recruitment costs, how long roles remain unfilled, induction/training costs and the time taken for a new employee to become proficient.

Statistics show that on average it can take 10-16 weeks to recruit a new employee when someone exits the business. This can of course depend on the skill level required to perform the role and the size of the candidate pool (for example a retail sales assistant role could be assumed to take less time to fill than an highly skilled engineering role).

Use our staff turnover calculator for an indication of the cost to your business.

Employing good policies and practices to help reduce employee stress and improve employee satisfaction is a great way to reduce turnover.

Here are some areas you can address to increase employee retention and reduce costs to your business.

Choose good managers

At times, good employees are promoted to managers because of their technical skills, not because of their people skills – but agood manager usually has a combination of both.

When a manager lacks the requisite people skills, there's often disengagement with staff which can lead to a number of issues – one of the biggest being skilled staff leaving the organisation.

Even managers with good people skills may find they only engage with staff when there's a difficult conversation to be had. This is often justified by time constraints, but waiting for an uncomfortable situation to sit down with your staff can make these scenarios more challenging than necessary.

Use our workforce information template to map out what skills your existing staff have.

Provide clear expectations

People get frustrated and demotivated when they don't know exactly what's expected of them. It starts at the top with the CEO, and is important for every level of leadership in a business.

Create a culture where you state clearly:

  • vision, goals, roles, values and behaviours
  • results, reporting, quality standards, timelines, priorities
  • safety, policies, communication expectations (emails, phone, report formats)
  • written lists of agreed actions and outcomes

Encourage people to ask questions to clarify.

Use our performance and development agreement plan template to clarify agreed actions and outcomes – and our HR manual template to develop clear policies in these areas.

Provide recognition – let employees use their skills

Encourage staff to work on areas they're passionate about and interested in developing.

Frustration and boredom are counterproductive, so you need to match jobs and people with the right skills. Conduct a skill assessment to discover special skills in your employees, and then experiment with projects and roles to get the right fit.

Recognise and reward a job well done. If a person is recruited for a role –and not given the opportunity to use their skills – they may not deliver the best work, and could leave.

Set up regular meetings for you to review staff performance, and for staff to provide feedback about their goals and achievements.

Provide support where needed

Seems obvious –but there are managers who really don't care about their staff and make no effort to show interest.

Get to know your staff. Find out what's happening in their lives, what motivates them, and offer your assistance and support when they need it.

Be people-proud and committed

You want staff to take ownership and feel proud of what they do. What actions do you take to ensure they feel important and passionate about the product or service your business provides?

Some businesses have a community commitment, which creates a shared pride in what's being achieved.

Encourage your staff

To get involved in decisions

Ask staff for opinions and ideas, and listen to what they have to say. This will make a– this makes a huge difference and will provide an environment that's open to innovation and improvements, creating job satisfaction.

To provide feedback

Encourage your staff's input, ideas and feedback, as well as day-to-day feedback discussions.

Be open to giving and receiving positive and constructive feedback – this is a great way to establish an open and honest culture in the workplace.Some managers forget that they're role models.

Visit our page oncommunication skills for managers to set up proper feedback channels.

To develop new skills

Promote learning and opportunities to develop new skills, because staff need to know there's a positive emphasis on gaining new skills.

Do you have recognition for learning and developing new skills? Learning is about developing new skills and improving the ones you have. Give people the opportunity to grow – they'll tell everyone what a great employer they have.

Organise regular fun activities

People need to take a break from work to share in some fun moments.This could be a casual day, an afternoon tea with a difference – perhapswith culturally focused food, trivia competitions, or a team outing for lunch.

Find a way to build this as a regular part of your workplace.

Now that you've take steps to make sure your employees are appreciated and happy, take the next step and create a desirable workplace for prospective candidates.

Engage staff and reduce turnover (2024)

FAQs

Engage staff and reduce turnover? ›

Companies can establish a positive environment that fosters engagement and lowers turnover by offering flexible work schedules and encouraging employees to take time off when necessary.

How does employee engagement reduce turnover? ›

Employee engagement reduces turnover because engaged employees are less likely to leave their jobs. This helps organizations avoid the high costs associated with turnover that result from the recruitment and onboarding of new employees, loss of productivity, and effects of disengagement on performance.

How do you motivate employees to reduce turnover? ›

6 Strategies to Reduce Employee Turnover
  1. Find the Right Talent. Every company has a different hiring process. ...
  2. Encourage Retention Early On. ...
  3. Recognize and Reward Employees. ...
  4. Identify a Clear Career Path. ...
  5. Encourage a Healthy Work-Life Balance. ...
  6. Create Learning and Development Programs.

How do you reduce staff turnover? ›

15 Tips to Reduce Employee Turnover
  1. Hire the right people. ...
  2. Keep up with the market rate and offer competitive salaries and total compensation. ...
  3. Closely monitor toxic employees. ...
  4. Reward and recognize employees. ...
  5. Offer flexibility. ...
  6. Prioritize work-life balance. ...
  7. Pay attention to employee engagement.
Nov 30, 2023

Why is reducing employee turnover important? ›

Low employee turnover can bring many advantages to your business, such as reduced recruitment and training costs, increased productivity and quality, and enhanced reputation and brand image. Hiring and training new employees is expensive and time-consuming, so retaining existing talent can save money and resources.

How to engage and retain employees? ›

Employee retention strategies for job satisfaction
  1. Onboarding and orientation. Every new hire should be set up for success from the start. ...
  2. Mentorship programs. ...
  3. Employee compensation. ...
  4. Perks. ...
  5. Wellness offerings. ...
  6. Communication. ...
  7. Continuous feedback on performance. ...
  8. Training and development.
Apr 17, 2023

What are the 5 drivers of employee retention? ›

The five main drivers of employee retention are strong leadership, frequent feedback, including recognition, opportunities for advancement, competitive compensation packages, and a good work/life balance. For retention strategies to be successful, they should be crafted with these five drivers in mind.

How to increase staff retention? ›

10 Effective employee retention strategies
  1. Build a positive company culture. ...
  2. Ask employees what they need. ...
  3. Follow through on employee feedback. ...
  4. Set clear expectations. ...
  5. Celebrate successes. ...
  6. Focus on professional development. ...
  7. Support a healthy work-life balance to reduce employee turnover.
Sep 5, 2023

How do you manage a team with high turnover? ›

The following seven tips can help you to support your team effectively in times of high turnover.
  1. Keep Team Spirits Up. ...
  2. Keep an "Open Door" Policy. ...
  3. Help People to Adapt. ...
  4. Practice Damage Control. ...
  5. Maintain Quality. ...
  6. Recognize Achievements. ...
  7. Look After Yourself.

What does it mean to reduce turnover? ›

Simple ways to describe it are “how long employees tend to stay” or “the rate of traffic through the revolving door.” Staff turnover can be optimal when a poorly performing employee decides to leave an organization or dysfunctional when the high turnover rate increases the costs associated with recruiting and training ...

What is the most common cause of employee turnover? ›

What are the main causes of staff turnover? The four main causes of turnover are lack of growth and progression, inefficient management, inadequate compensation, and poor workplace culture. These reasons for staff leaving are present at many organizations around the world.

What is a possible reason for staff turnover? ›

This could be due to personal reasons, a better job, or a new career path. They could also choose to leave the workforce entirely. Involuntary turnover is when you choose to part ways with an employee due to poor performance or company finances, either through layoffs or other forms of termination.

What are the main causes of employee turnover at a workplace? ›

Many of the top reasons for turnover—poor compensation or work-life balance, little training and scant career advancement opportunities—hinge on the manager, so HR teams need to identify supervisors who flat out lack the competence to manage people and either transition them to new roles or provide support and training ...

Why is low employee turnover bad? ›

Settling for status quo: A lack of turnover could indicate that there's no need to hire new people as current employees are in their same roles. This could limit professional growth opportunities for current employees, but it can also put your company at risk of stagnating.

What are two critical factors in employee retention? ›

Below we've also listed actionable strategies to address the factors influencing retention.
  • Onboarding and Training. You've to realize early on that retaining both your non-exempt and exempt employees starts with recruiting. ...
  • People and Culture. ...
  • Recognition. ...
  • Work-Life Balance. ...
  • Relevant Benefits. ...
  • Career Development.
Oct 5, 2022

Why is staff turnover bad? ›

Constant employee turnover could lead to project stoppages or even cancellations, which could completely affect the business strategy. In addition, staff turnover makes it much more difficult to implement new initiatives. Not only because of the lack of workers, but also because of the barriers that new hires may pose.

How does employee engagement affect turnover intention? ›

Also, there is negative impact of Cognitive Engagement, Behavioural Engagement and Emotional on their willingness to shift their jobs. The suggestions and recommendations to reduce turnover intentions and retain the employees are given in the end of the paper.

What is the relationship between employee engagement and turnover intention? ›

Higher engagement at work leads to loyalty and a stronger attachment to an organization, and this results in lower levels of employee turnover intentions [32,33,34]. There have only been a few researches in the past that have addressed this indirect relationship. Tsen et al.

What is the relationship between work engagement and turnover intention? ›

Previous studies indicate low work engagement tends to stimulate higher employee turnover intention (Cao et al., 2020; Edwards-Dandridge, 2019; Syed Ghulam et al., 2019). Work engagement is reported to affect CWs' turnover intention directly or indirectly (De Simone et al., 2018).

How does employee engagement lead to increased productivity? ›

Employee Engagement Increases Productivity

Employee productivity is important to any business. The more productive your employees are, the more successful you'll be as a business. According to Gallup, highly engaged teams are 21% more productive and have 28% less internal theft than those with low engagement.

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