Employee turnover costs your company money in a big way. Start with recruiting and training expenses. Add in the cost of getting a reputation for high turnover. The public looks skeptically at your business. Competent, qualified people – the kind you want in your workplace – might not even bother to apply.
The employee turnover equation equals always struggling for survival. Here are five ways you can cut turnover and keep productive workers on the payroll:
- The first rule is the Golden Rule: “Do unto others as you would have them do onto you.” You’ll never forget your worst boss. He or she was the person who barked at you whenever you asked a question… who had nothing good to say about the project you slaved the whole weekend on. You probably didn’t stay long at the job with this boss. Now think of the one supervisor you most respected. Kind words of encouragement and praise were the qualities you most appreciated in this individual. Cultivate these same qualities in your interactions with employees. You’ll encourage the same long service that characterized your time of employment under this favorite supervisor.
- Give performance reviews several times a year. Workers want to know how well they are doing. Be honest. Identify areas needing improvement. But don’t forget words of appreciation for a job well done.
- Entice workers with a tempting benefit plan. We live in a time when health care costs figure into a couple’s decision to have a child, when elderly people wonder if they can both purchase food and pay the rent. Advantageous insurance and retirement plans can make the difference between whether a worker is coming or going.
- Guard against burnout. Employees must earn their keep, but there’s no sense in working someone to the bone. You may save money in the short run, but high turnover is the price for burnout. Don’t expect employees to want to work 60 hours or more a week, week in and week out.
- Encourage worker creativity. Include employees in planning sessions. Fresh, new ideas generated by workers can solve your scheduling difficulties or sales problem. Workers will know you value their opinions and suggestions. And you’ll notice that fewer employees are clearing out their lockers and desks.