Tips for Reducing Employee Turnover

PESTLEanalysis Team
PESTLEanalysis Team
Table of Contents
Table of Contents

Employee turnover is a data-driven measure of how many workers are leaving your company and at what rate. Use these tips to reduce employee turnover.

Employee retention is a primary focus for business owners and HR teams, and this is why they're constantly looking for ways to reduce turnover rates. Employee turnover is a data-driven measure of how many workers are leaving your company and at what rate. Turnover can be voluntary, where employees leave of their free will, or involuntary, which accounts for terminated employees.

High voluntary turnover is considered an unfavorable KPI as it means your company is losing good talent, primarily to competitors. It's caused mainly by employees looking for better packages, improved work-life balance, opportunities for career progression, or personal issues. Below are tips you can use to reduce employee turnover.

1. Prioritize work-life balance

Work-life balance is a struggle for many employees, and this may cause burnout, prompting them to look for better opportunities. Ensure that workers don’t work after hours or work on projects past midnight. Using a capacity planning tool, you can effectively plan your workload to ensure you don't overload your employees and cause burnout. When you assign achievable workloads to your staff, you avoid costly staff replacement and boost team morale. You can also encourage remote work so your employees can enjoy more work-life balance.

2. Recruit the right talent

When you clearly define the role you’re recruiting for, you’ll attract candidates with the desired experience, skills, and knowledge. Be clear about your company’s culture from the start so the potential candidates can decide whether they can fit in or not. Consider contacting their referees to find out more about the candidates you intend to hire. Finding the ideal candidate ensures low turnover rates.

3. Offer competitive salaries and compensation

Salaries and benefits are the main reasons why people go to work and also a top reason for a job change. A good salary package, time off, and benefits are among the things that can convince an employee to stay. This is why you need to offer an appropriate package during the recruitment process to attract talented and qualified candidates.

Consider offering regular raises and also find out what other companies provide mainly for the hard-to-fill positions. You should also pay more for in-demand skills and establish a talent management process to identify top performers and correct pay imbalances to pay-related turnover.

4. Consider flexibility

People love jobs with flexibility, so offering them more latitude boosts retention, and improves employee satisfaction and productivity. Besides introducing remote work, you can include flexible time, part-time schedules, a compressed workweek, or job-share where employees rotate days working from the office. Choose the options that can effectively work for your company while ensuring employee retention.

5. Recognize and reward employees

Your staff put in a lot of effort in their daily work. Appreciating them with a thank you or appreciation notes makes them feel that someone notices and values their contribution. You can also recognize them by giving them new and challenging opportunities. Any feedback that leaves your staff with positive emotions will most likely keep them more engaged and less concerned about looking for new job opportunities, reducing turnover rates.


High employee turnover rates lead to increased recruitment, hiring, and training of replacements, negatively impacting profits. Use the above tips to boost employee retention and keep your talent.

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