“Turnover can be one of the most expensive problems at a company” – Shawn Achor – American author, and speaker, CEO of GoodThink Inc.
Employee turnover is inevitable as employees move from one organization to another for better compensation, work-life balance, and career growth. When an employee moves out of the organization, it not only results in a delay of critical projects, but also damages the morale of the team. Moreover, the organization has to bear a high cost in terms of time and money to find a suitable replacement.
As a CEO, here are some effective and simple strategies for you to implement, in order to control employee turnover at your startup.
Hire The Right People
As per a recent study by Harvard Business Review, 80% of employee turnover happens because of bad hiring decisions.
Not hiring the right candidate for the organization is one of the main reasons for employee turnover or attrition. Employees often leave their current organization because they don’t find themselves a correct fit for the job anymore, or discover that their values and principles are different than those of the organization. There are numerous ways in which organizations can streamline their actions in identifying and hiring the right candidate.
- Job descriptions should be well constructed and clearly written to attract the correct talent. This will help prospective employees to understand how the job role matches their skill and how it will help in their professional growth
- Organizations can make their mission statement public, and it should be present on the organization website highlighting the mission, vision, and goals of the organization
- Focus on conducting skill proficiency tests to filter out the right candidate
- Conduct personality assessment tests and interviews to determine whether the candidate is a culture-fit or not
Hiring the right candidate will not only improve employee retention rate of the organization but will also help in improving productivity.
Also Read: Employee Feedback Matter More Than You Think
Work-life balance is increasingly becoming prevalent in every organization to prevent their employees from experiencing a burn-out. As per research by Gallup, employees are 2.6 times more likely to look for a new job if they have reported being burnt-out. Organizations promoting work-life synergy should offer remote working, flexible working hours, and lunchtimes. If an employee is working extra hours in a month, then they should be given at least a day off from work.
Having a work-life balance will help employees maintain their mental and physical health, which in turn will improve employee engagement, retention rate, and productivity.
Also Read: These Features Can Make A Big Difference In A Goal Setting Software
Compensation and Benefits
Compensation plays a huge role when it comes to retaining existing talents and attracting new ones to the organization. Gain insights on compensation and benefits offered by your competitors and offer the same to your employees. It will help you hire and retain top talents for your organization. To match the industry standards, a yearly hike should be given to all employees based on their performance, job knowledge, and acquired skills.
Encourage Rewards and Recognition
Holding back or waiting for the right time to reward and praise your employees for a job well done, often dampens their morale. Employees get discouraged and disengaged when their contributions go unnoticed, which in turn affects their productivity.
When employees work in an organization where their efforts are rewarded and recognized immediately or in real-time, they feel encouraged and are more engaged in their work. They feel valued and appreciated for their work. Employee rewards and recognition is one of the most effective ways to increase productivity and reduce employee turnover. Some simple ways to reward and recognize your employees are:
- Featuring your employees on the organization website
- Appreciation mail to the employee marking all the stakeholders
- Paid time off from work
- Establishing an award system or employee of the month
- Public praise
Also Read: Employee Recognition & Rewards During COVID-19
Invest in Employee Training
Training plays a key role in improving the retention rate of any organization and fosters a culture of continuous learning. It helps new employees get familiar with organizational mission, vision, goals, and job roles while existing employees get a chance to refresh their knowledge and learn new skills. Conduct one-to-one discussions and stay interviews with your employees from time to time in order to understand what they look forward to at work, and whether you can make the experience better. It will help you understand your employees better and design or select custom training programs.
When employees see that the organization is interested in investing in their training and education, they feel valued by the organization. It boosts the morale of the employees and helps in improving employee retention.
Also Read: How Stay Interviews Can Help You Retain Top Employees
Employee turnover will be an on-going challenge for all organizations globally and there is little that can be done to eliminate it. But the above strategies will help in minimizing employee attrition or turnover and will transform your organization to a place where everyone would love to work.
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