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Guide to Preventing Employee Turnover

Improve employee retention to save your business money


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Employee turnover can cost your business 120 to 200% of a departing employee's annual salary and experts estimate that it takes new employees around 13 months to get up to speed in a new position. A recent study by CIGNA Behavioral Health found that over 45% of workers had considered leaving their jobs in the last year or had already left.

Many reasons exist why individuals leave their jobs. These include:

  1. Wages
  2. Benefits
  3. Understaffing
  4. Poor job fit
  5. Lack of Communication
If you want to decrease employee turnover, you'll need to consider why employees leave and how to change those aspects of your business. You can find many resources online to help you resolve common problems and help increase your employee retention.


Action Steps
The best contacts and resources to help you get it done

Implement work/life programs to help decrease employee turnover


Many Fortune 500 companies that routinely rank high on the lists of best companies to work for use work/life programs. Employees like these programs and benefit from them. Aspects like flexible work schedules can help you improve employee retention and recruiting.

I recommend: The U.S. Office of Personnel Management has a number of suggestions for improving workplace flexibility, family life and worker health and wellness. Hire a consultant, such as Work Life Balance or Perspectives LTD to help you identity, implement and improve your work/life programs.

Show employees how to increase their productivity


Having more productive employees can often decrease the amount of time that an employee needs to work. Although this will be less of an issue for hourly workers, those on a salary will like being better able to balance their work and personal lives. This can also decrease the amount of stress that employees feel.

I recommend: Show your employees different ways of increasing their productivity. Use software programs like Profile XT, which matches your employees to positions in your business where they can be most successful. This will help them enjoy their position more as well as increasing productivity. Motivate your employees toward greater productivity.

Use team building to decrease employee turnover


Integrate your employees through team building exercises. Team building allows employees to work together to solve problems, reducing their stress factor.

I recommend: Try different team building activities in order to help you with employee turnover. Use various tips to help your meetings run more smoothly and increase your team's commitment to each other. You can also hire team building consultants and companies, like Adventure Associates, who will guide you through the process.

Improve communication for employees


Studies show effective communication about where the company is going and why helps to increase employee retention. Let employees know what you want them to accomplish. Feedback is also important to employees; they want to know how they are doing and to get quick feedback on what you expect. Ask for their input when it's appropriate, giving them a sense of ownership in the direction of their job. Provide positive appreciation for your employees' work.

I recommend: Foster effective communication to help decrease employee turnover. Use sample surveys  to get feedback from your employees or build your own surveys to get the information you need. You can also use survey consultants to help you construct an employee feedback survey. Hire a company like Communication Works to help you improve the communication in your business.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Studies indicate that the average worker has more than 200 hours of uncompleted work that has created a backlog. Helping them reduce this amount, and their stress levels about it, can help you retain more employees.
  • Although employers typically think that wages and benefits are the main reason employees leave a job, studies indicate that aspects like communication problems and understaffing play a large role in this decision. Raising wages may not be enough of an employee retention plan.

The official source of Preventing Employee Turnover is
the Employee Turnover page at Business.com

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