The Bureau of Labor Statistics reports that roughly 42.1 million Americans voluntarily left their employment last year. For businesses that struggle to find the right talent, turnover can be challenging. Here is how costly employee turnover can be, why your staff might choose to walk away, and some strategies to reduce turnover and increase your bottom-line results.
The Cost of Employee Turnover
Employee turnover can be expensive for your business. When a member of your team quits, you have to spend time and resources to hire and train their replacement. Beyond this, there is the lost productivity and the possibility that you could lose the trust or business of customers.
Why Employees Quit
Employees can decide to leave a position for any number of reasons. Some of the most common are:
- Unsatisfactory compensation
- Feeling unappreciated
- Scheduling conflicts
- Lack of opportunities for advancement
- Poor company culture
Strategies to Reduce Employee Turnover
When you have higher than average employee turnover rates, it is going to impact your bottom-line results. Here are some strategies for reducing turnover and avoiding paying out those unnecessary costs that erode your profits.
1. Hire Smartly
Employee retention measures should begin when you hire. In addition to looking for talent with certain job skills, pay particular attention to behaviors and attitudes that might impact turnover.
2. Provide Training
Set your staff up for success by giving them the tools and training to be fully immersed in their work. Providing ongoing training for your staff lets them know that you value them and sets them up for advancement opportunities.
3. Empower Your Team
No one loves to be micromanaged, and hovering over your employees is a sure way to increase turnover and impact your profits in ways you don’t want. Instead, give your staff the resources and freedom they need to be successful. If they make a mistake, turn it into a learning experience to improve your processes and relationship with them.
4. Offer Flexible Work Schedules
Some of the highest turnover industries are those that require shift work. When employees don’t have any flexibility in the shifts or hours that they work, they are more likely to leave their positions for green pastures. Be as flexible as possible with your staff, and they’ll be more likely to stick with your organization in good times and bad.
5. Identify Dissatisfied Employees
Keep a sharp eye out for dissatisfied employees so you can address issues quickly and effectively. Some of the sure signs of an employee that could be considering walking away include:
- Watching the clock or coming and going precisely according to scheduled hours
- Just going through the motions at work as opposed to being engaged
- Experiencing a major life event that can add extra stress
6. Be Accommodating
Beyond offering flexible scheduling, simply be available to your employees to address issues. Check in with them regularly to see how they are doing and to discuss any opportunities for advancement. These efforts will go a long way toward building employee loyalty and improving productivity.
Reducing employee turnover is just one way to improve your bottom line results. Nolan Accounting Center can help your business with better financial management and free up the time and resources you need to focus on your core business. Contact us today to learn more about how our team of Accountants and CPAs in Southeast Wisconsin can help drive the success of your business.