Strategies for Reducing Employee Turnover

One of the biggest hurdles companies face is their employee turnover rate, which often fluctuates due to many reasons. The manufacturing sector sees a turnover rate of over 21%, and the retail industry has a turnover of over 50%. Since it’s unsustainable to constantly go through the hiring process because people keep leaving the company, below are a few strategies for reducing employee turnover.

 

Allow Development Opportunities

As a rule, people don’t like stagnation in their personal or professional lives. The problem is that stagnation can creep up slowly, and people become busy and do not even notice that they’re stagnating until they look around and realize they’ve been at the same place in their lives for a long time, and it’s time for a change. When employers develop pathways for employees to grow and learn in their careers, build new skills, and strengthen existing ones, this benefits the organization and boosts morale and productivity.

 

Be Transparent

When employees feel like they have a voice and understand what’s happening in the company, they become more invested and engaged. When leaders become more transparent with better communication through engagement surveys, business strategy, and town halls, it helps to increase retention rates and makes for happier employees.

 

Life/Work Balance

A poor balance between work and life leads to burnout and employees seeking a different role. This imbalance is often due to employers expecting employees to work after their typical working hours or on weekends. Another reason may be how long it takes them to commute between home and work. A few ways to address this are to realize employees need time off, provide flexible scheduling, and offer workers an opportunity to work remotely, if possible.

 

Monitor The Toxic Ones

Employees want co-workers they can trust, and when employees have to interact with toxic co-workers or managers daily, it dampens their quality of work, well-being, and engagement. While it’s hard to spot toxic employees sometimes, a few things to look for include those who undermine colleagues, take credit for the work of others, gossip, criticize everything, and blame others for mistakes. Sometimes all it takes is someone pointing out these traits for them to fix their behavior, but there are times it’s a deeper problem.

 

Offer Competitive Salaries

One of the many reasons people take jobs is the pay and benefits the company provides. When companies offer competitive salaries and benefits, they attract qualified candidates. They’re also more likely to stay when they’re regularly offered raises and bonuses. Also, ensure that you prevent pay imbalances by checking for disparities between race and gender.

 

Creating an employee benefit plan, particularly 401k plans, isn’t something you should do alone as they require expertise and a specific skill set. At Taurus CPA Solutions, our professionals have knowledge and experience with current auditing and accounting standards, regulations, and laws related to employee benefit plans. If you need another pair of eyes to audit your employee benefit plans, contact us by filling out our online form or calling us at 1-410-465-4600.