If you’re running a business, you know high employee turnover can be a detriment to the bottom line. From recruitment and training, to organizational inefficiencies and negative customer experience, replacing a full-time employee can cost you up to the equivalent of double their salary.1
This is especially concerning, with worldwide events disrupting just about every area of the business sector. Fortunately, though, by looking carefully at your operations and making some calculated changes, you can greatly improve your chances of retaining your top talent.
Here are a few reasons companies may have high turnover rates and some tips for improvement.
Culture is Key
According to research conducted by Quantum Workplace, of 32,000 individuals surveyed, 66% of employees say their culture positively impacts their work and behavior.2
What “positive culture” means can vary, but factors like cooperation, safety, equity, respect, and accountability are essential for the morale and motivation of any team.
If you sense that your culture could use improvement, survey your staff about their concerns and work to address them promptly. After that, begin to explore your company’s values. Do you consider employee empowerment a top priority? Perhaps you see flexibility and a relaxed atmosphere as motivators. Or maybe you want family and work-life balance at the forefront.
Once you establish your values, communicate them to your team, then reinforce them through your branding, internal messaging, employee reviews, meeting protocols, and major business decisions.
Be an Active Listener
According to the Workforce Institute, 92% of highly engaged employees feel heard at their workplace compared to 30% of highly disengaged employees. 3
By creating a culture where employees feel heard, you can give your team a sense of control which could lead to increased loyalty and engagement. Doing so may also allow you access to the unique perspectives of employees in all areas of your business.
The key is open communication.
If you don’t have one already, implement an open-door policy that allows employees to feel comfortable talking to peers and management, no matter what their title. After that, conduct ongoing individual check-ins with employees and make time for regular team meetings.
Surveys and polls are also great ways to gather feedback and ensure that your team feels heard.
And of course, you must learn to accept constructive criticism, address concerns promptly and fairly, and always follow up with your employees to get their opinions on changes you’ve made.
Recognize Your Team’s Value
When your employees feel appreciated, typically productivity is boosted, teamwork is increased, and engagement is enhanced. However, when employees don’t feel appreciated, the impact on turnover can be severe. In fact, according to recent research by management consulting firm McKinsey, not feeling valued is a key factor in employees choosing to leave their jobs.4
There are countless ways to help make your team feel valued. Pass on positive internal or customer feedback. Thank them with a personalized hand-written note. You may even out specific employees and reward their accomplishments when warranted.
You can also organize team appreciation events, employee-of-the-month programs, or earned time off.
Allow for Advancement
Besides pay, the number one reason employees leave their jobs is lack of potential for career growth.5
If your company has room for advancement, posting job openings internally ensures that employees understand their upward mobility options.
Helping workers map their career paths and setting clear expectations for them can also lead to a sense that they are on the road to promotion.
Things get a little more challenging if there simply aren’t advancement opportunities in your company. In this case, the solution may be to expand your definition of advancement.
One way to do this is by getting creative and providing growth outside of traditional promotions.
An example might be to offer more fulfilling special projects such as mentoring others or leading a community outreach program. Doing meaningful work like this can help keep your employees feeling rewarded and engaged.
You can also provide personal and professional development training as part of their benefits package as we’ll discuss below.
Employee Benefits
By implementing the tips already shared, you may be well on your way to increasing employee satisfaction and reducing turnover. There is one other factor, though, that may be playing a part in your retention struggles – benefits.
Offering a competitive benefits package can help attract top talent and lets your team know you’re invested in their health and future.
In addition to the standard retirement programs and health insurance offerings, there are many other benefits you might consider. Bonuses, commissions, stock options, flexible schedules, and remote/hybrid work opportunities are a few examples.
Providing tuition assistance and professional development programs is another option for retaining employees and keeping them engaged. Especially, as mentioned earlier, if a path to formal advancement isn’t currently available.
By adding tuition aid to your benefit package you offer your team a break from out-of-pocket tuition costs – a perk too good for some employees to pass up. What’s more, 76% of workers participating in a tuition reimbursement program say they are more likely to stay with their current company because of this benefit.6
Learn How CTU May Be Able To Help Provide a Debt-Free* College Education Path for Your Employees
Colorado Technical University offers flexible online and mobile courses and degree programs designed for busy adults. And with CTU’s Commitment Grant, in addition to your company’s qualified tuition assistance program, up to 100% of eligible employees’ tuition may be covered.**
Learn more about working with CTU to promote a culture of learning at your company.
1 McFeely, Shane and Wigert, Ben, “This Fixable Problem Costs U.S. Businesses $1 Trillion”
http://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx, March 13, 2019
2 Ryba, Kristin. “The Importance of Organizational Culture.” August 22, 2023. http://www.quantumworkplace.com/future-of-work/importance-of-organizational-culturesearch,
3 Workforce Institute. “The Heard and the Heard Nots.” 2021.
http://workforceinstitute.org/wp-content/uploads/The-Heard-and-the-Heard-Nots.pdf
4 De Smet, Dowling, and Mugayar-Baldocchi, “’Great Attrition’ or ‘Great Attraction’? The choice is yours.” September 8, 2021. http://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/great-attrition-or-great-attraction-the-choice-is-yours,
5 Parker and Horowitz. “Majority of workers who quit a job in 2021 cite low pay, no opportunities for advancement, feeling disrespected.” March 9, 2022. http://www.pewresearch.org/fact-tank/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/
6 Wingo, Lauren. “How to Offer Employee Tuition Reimbursement.” December 16, 2021. http://www.uschamber.com/co/start/strategy/employee-tuition-reimbursement
*The Commitment Grant may cover the remaining cost of completing a CTU degree after applying the portion covered by the alliance member’s employee tuition assistance. If students elect to take out federal loans, they are no longer eligible for the Commitment Grant, and thus not eligible for the debt-free education option.
**University grants or scholarships are based on established criteria as published in the University Catalog and are awarded after verification that the conditions of eligibility have been met. Students receiving a grant or scholarship, including the Commitment Grant, must continue to meet the eligibility requirements for the program. For terms and conditions of the Commitment Grant 4ir7.haierso.com/commitment-grant/terms-and-conditions. Eligibility may vary depending on your company’s tuition assistance policy and your program choice.
CTU cannot guarantee employment, salary, or career advancement. Not all programs are available to residents of all states and certain foreign countries. REQ1966856 1/2024
