Every business has certain issues that they must deal with; one issue that is common to all businesses is employee turnover. There are significant costs related to employee turnover. Interviewing, selection and training of new employees requires a significant investment of resources. In addition, your business suffers lost productivity until these employees can be replaced. Consistent high turnover also leads to reduced morale for the employees who are left. There are two types of employee turnover, involuntary and voluntary. Involuntary turnover is also called attrition.
Managers have no control over attrition, which is caused by retirements, firings and other events that cannot be prevented. When employees leave by choice, it is known as voluntary turnover. There are several things that managers can do to reduce the rate of voluntary employee turnover.
Ways to Keep Your Employees Motivated
Performance recognition is one way to increase morale and reduce employee turnover. High-performing employees can be rewarded with tangible or intangible rewards. Tangible rewards include things like raises, bonuses or promotions. Intangible rewards can include things like more desirable working conditions, extra personal time and a flexible work schedule. Publicly rewarding high-performing employees encourages all employees to work harder and gives your business a positive work environment.
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Every company has a unique set of core values and a culture all its own. One reason that employees come to work for your business is that they agree with your core values. Communicate these core values regularly, to give all your employees a sense of camaraderie. Employees who feel as though they belong to a group of like-minded coworkers are less likely to leave your company.
Your business is built around satisfying your customers, whoever they are. Keep your employees motivated by making worker satisfaction a priority as well. One of the best ways to improve worker satisfaction is with two-way communication. As a manager, you spend a lot of time communicating with your employees; giving directions, correcting mistakes and giving feedback are essential duties of your job. Be sure that the lines of communication are open in the other direction as well. Your employees have valuable insight into the workings of your business; these are insights that you cannot afford to ignore. Do not simply have an open door policy; make it known that you actively solicit feedback from your employees. When you receive useful suggestions, implement them; then give credit where it is due. Take the time to develop relationships with your employees, and you will find that they become more like your family.
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Making safety a priority is another way let to your employees know that they are valuable. This will lead to reduced employee turnover. Spending the time and money to make your business a safer place is not just good for productivity; it is the right thing to do.
No matter what you do, there will always be a certain amount of employee turnover. Involuntary turnover cannot be avoided, and there will always be employees who leave because they are dissatisfied; your business is actually better off without these employees. By taking steps such as the ones listed here, you can minimize voluntary employee turnover, while increasing morale and productivity as well; that benefits everyone.