Posted on: 23 January 2017
High employee turnover rates may be costlier to your business than you realize. In addition to onboarding and initial training expenses, there are advertising and general interview costs to consider. Employee turnover can negatively affect your employees' productivity levels and overall engagement levels as well. Luckily, there are a few things you can do to help reduce your company's employee turnover rates and therefore increase your production levels and profit margins. Consider using one or more of the following tips and tricks:
Create a New Compensation Strategy
Consider working with a compensation consultation to create a new strategy that attracts prospective employees to your place of business and keeps the ones you hire happy and productive long-term. Your consultant will come up with a variety of compensation methods you can use to help keep employee turnover down that doesn't revolve only around their hourly pay. In addition to creating a competitive and evolving hourly compensation plan, your consultant can help you:
- Produce a bonus program.
- Create overtime and holiday compensation structures.
- Implement an employee compensation review policy.
Look for a consultant to work with who has the capacity, experience, and time to view your monthly reports and sit down with you on a quarterly basis to adjust your compensation strategy if needed.
Adjust Your Interview Process
You can also decrease your employee turnover rates by spending more time during the interview process vetting prospective employees. It's more financially efficient to hold off on filling a critical role until you find the perfect fit for the job than it is to hire someone out of desperation in hopes that they'll work out in the end. So, don't skimp on the interview process. Make sure that all references provided to you on the application are reached out to and that any previous employers you've been told about have been consulted.
If your company deals with the credit card and other financial information of your customers, don't be afraid to run a credit and background check on potential employees. You can also effectively vet prospective team members by giving them personality tests as part of the onboarding process. Personality tests will help you identify which applicants have similar personalities to the rest of your staff and harbor the interpersonal characteristics needed for the position being applied for before scheduling one-on-one interviews.
Maintain an Employee Feedback Program
An excellent way to make sure that your employees feel listened to and valued, and to improve engagement among team members, is to maintain some sort of employee feedback program for them to utilize. There are a variety of ways to plan, execute, and manage an effective employee feedback program including:
- Keep a feedback box in the break room where employees can anonymously leave comments; read the feedback once a week and act upon it accordingly.
- Host a monthly group meeting that team members can attend if they want to provide feedback in person or have their questions and concerns addressed directly by upper management.
- Manage an intranet forum where team members and management can come together to discuss ideas, plan changes based on feedback, and provide extra support to those who need it.
- Have quarterly feedback contests—employees can vote on their favorite suggestions that have been submitted by peers, and the winner gets to play a role in implementing the changes that come about due to their feedback.
Use a combination of these ideas throughout the year to create a robust employee feedback program that helps to meet the needs of your employees no matter what their position is within the company.
Each one of these options brings their own unique benefits to the table and is sure to help you improve employee retention over time.Share