Effective Ways to Reduce Turnover

Did you know that high turnover rates aren't necessarily a bad thing? They only become problematic when you lose top talent. What makes workers in small businesses decide to leave? We have seven effective strategies to retain employees and reduce the turnover of top talent.

1. Retention Begins on Day One of Employment

You've gone to great lengths during the hiring process to recognize and attract top talent. However, some small businesses drop the retention efforts as early as the initial onboarding process.

A well-structured onboarding process sets the tone for your new employee's experience within the company. The first few days are critical for new hires since they form their initial impressions. Strive for a comprehensive onboarding program introducing the company's culture, values, and expectations. 

This should also include a detailed overview of the employee's role and responsibilities and how they fit into the broader organizational structure. Providing a mentor or a buddy system can help new employees feel more comfortable and supported as they adjust to their new environment.

Knowing how to build brand awareness among customers isn't enough. You need to develop it among your workforce to get their buy-in. 

2. Being Practical = A Work-Life Balance Your Employees Can Work (and Live) With

Remote work is feasible if the pandemic has taught employees and employers anything. If this applies to your business, then there's no point in hanging on to an antiquated work-hour model. Making reasonable changes and accommodations is an excellent step toward the work-life balance your employees crave.

Plenty of employers already have devised creative solutions to improve employee morale with a healthy work-life balance. Sometimes, being practical is one of the most effective strategies to retain employees and reduce turnover.

1. Flexible working hours. Empower employees to start and finish their workday at times that suit their schedules. Flexibility helps employees manage their work responsibilities alongside personal commitments, such as family care, education, or hobbies. Trusting employees to manage their time shows that you trust and respect them.
2. Remote work options. Remote work has become increasingly popular, especially after the global shift during the COVID-19 pandemic. Letting employees work from home, even part-time, is a significant perk that boosts job satisfaction.
3. Family-friendly policies. Your employees have personal responsibilities, just like you. Some deal with childcare issues, school problems, eldercare issues, and doctor's appointments. Develop policies that support an employee's ability to balance work with family responsibilities. When you do that, a worker won't have to choose between working for you and caring for their elderly mom.
   

One size does not fit all. Some jobs require your workers to be on the premises during business hours. However, when there is an opportunity to give a worker a little room, take it. 

3. Offer a Competitive Salary in Line With the Job Description

Did you know that many small business owners don't have job descriptions for their workers? Not surprisingly, some may feel like they are doing a lot of extra work for which they aren't getting paid. Of course, once you have the job description, it is critical to assign a competitive salary to the job.

Do  Market Research

What do other employers pay their workers for similar positions within your industry and geographical location? Tools like salary surveys, online salary databases (e.g., Glassdoor, Payscale), and industry reports provide valuable insights. Factor in the regional cost of living when evaluating these benchmarks. If you get sticker shock, it may be time to redefine your job descriptions to save money.

Pay Extra for Outstanding Experience and Skills

Positions requiring specialized knowledge, advanced degrees, or significant experience require higher salaries. When defining the salary range you allocate to the job descriptions, consider the value these qualifications bring to the role and the company. In some cases, having an advanced degree isn't required for an open position. There's no point in paying extra for a college education that didn't benefit the company.

Work with a Salary Range

Establish a salary range rather than a fixed figure. It gives you flexibility when hiring candidates with varying levels of experience and expertise. It also allows room to offer higher salaries to exceptional candidates.

Regularly Review and Update Salaries

Market conditions, industry trends, and economic factors influence salary standards over time. Regularly review and update your salary offers to ensure they remain competitive. This ongoing evaluation retains current employees and attracts new talent in a dynamic job market.

4. Be an Effective, Inclusive, and Respectful Leader

Effective leadership begins with self-awareness. Understand your strengths, weaknesses, biases, and triggers. Emotional intelligence (EQ) plays a critical role in this. Leaders with high EQ can manage their emotions, empathize with others, and navigate interpersonal relationships skillfully. Reflect on your behavior and its impact on others, and seek feedback to improve continuously. And, if you have managers and supervisors in charge, make sure that their soft skills are up to par. 

New workers struggle with fitting into cliques, so it discourages their formation. Instead, offer opportunities for friendly competitions between teams, which includes everyone. Also, promote inclusivity to make all employees feel valued, respected, and empowered to contribute. Actively encourage diversity in your team by recognizing and valuing different perspectives, backgrounds, and experiences. Encourage collaboration and ensure that everyone has an equal opportunity to participate and be heard. Address any exclusionary behaviors or practices promptly and fairly.

Remember also to train your employees at all levels to have and exhibit proper soft skills. A toxic coworker or supervisor will cause a top employee to look for work elsewhere, even if they love your company and what they do. Be on the lookout for workers who gossip, shift the blame for problems on others, or make coworkers look bad.  

Another sign of excellent leadership is consistency and fairness. Your decisions, feedback, and treatment of team members must be consistent and based on merit. Avoid favoritism or bias, and make decisions that are transparent and justifiable. When employees perceive fairness, they are more likely to respect and trust your leadership. If you have supervisors and managers in place, ensure that they follow this maxim. 

Finally, conflicts are inevitable. Some personalities simply don't mix well. That's okay. But how you handle these conflicts defines your leadership. Address them promptly, fairly, and with respect for all parties involved. Focus on finding solutions rather than assigning blame. Encourage open dialogue and seek to resolve conflicts in a way that strengthens relationships and the team's cohesion.

5. Change Management Can Be a Dealbreaker

The only constant is change. Sometimes, change is challenging for your business, and you may perceive it as bad. Effective strategies to retain employees and reduce turnover largely depend on how you manage and communicate change. If you—or your management staff—greet every change with a "the sky is falling" mentality, workers may look for other jobs simply as a means of self-preservation.

There are better ways of handling and managing change.

1. Analyze upcoming changes and how they will affect you in the short and long term.
2. Work with your management team on how to navigate the changes.
3. Keep your workforce informed about your short and long-term plans to deal with the change. It prevents rumors from spreading that may worry your top talent.
4. If the change is bad for the company, communicate it in a group meeting. Answer all your employees' questions—even the uncomfortable ones.

6. Create a Corporate Culture That Your Employees Want to Participate In

Corporate culture is an extension of your branding. It attracts customers to your product or service. It makes your workplace a good place to be. Creating a corporate culture that employees want to participate in is vital for fostering engagement, loyalty, and overall job satisfaction. 

A strong, positive culture doesn't just happen. It is a significant differentiator you build to attract and retain top talent. Here's how you do it:

1. Define and spell out core values. These values represent your company's mission, vision, and principles—what your company stands for. Communicate the values to all employees, ensuring they are consistently reinforced through company policies, practices, and leadership behavior. Employees who see that your company lives by its values are more likely to align with and embrace the culture.‍
2. Be the example. Leaders and managers play a crucial role in shaping and sustaining corporate culture. They should embody the company's values and set a positive example. Demonstrating commitment, integrity, and respect encourages employees to follow suit. Authentic leadership fosters trust and creates a culture where employees feel valued and motivated to contribute.
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3. Encourage open communication. Open and transparent communication is essential for building a culture of trust and collaboration. Let employees voice their ideas, concerns, and feedback without fear of judgment or retaliation. Implement regular check-ins, town hall meetings, or open-door policies to ensure that communication flows both ways. Set up an anonymous suggestion box. Acknowledge the suggestions you receive. When employees feel heard and valued, they'll buy into your brand and culture.
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4. Reward contributions. Employees want to feel that their work is appreciated and that they are making a meaningful impact. Regularly recognize and reward employee contributions, whether through formal programs like bonuses and promotions or informal gestures like public acknowledgment and thank-you notes. Recognition reinforces positive behavior and motivates employees to continue contributing to the company's success.
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5. Create a positive environment. Make the workplace where your employees get to be rather than have to be. The physical and social work environment significantly impacts employee satisfaction. Ensure that the workplace is safe, comfortable, and conducive to productivity. Foster a positive atmosphere by encouraging respect, kindness, and positivity. Small gestures, like celebrating birthdays or achievements, contribute to a more enjoyable work environment.

7. Prevent Employee Burnout

Preventing employee burnout is essential. Maintaining a healthy, productive, and motivated workforce is the only way. Burnout happens when there is chronic stress, exhaustion, and disengagement. We've already addressed work-life balance and similar steps. However, for this type of burnout, let's focus on the job itself. 

Encourage employees to take regular breaks and to step away from their workstations. Yes, it is already the law, but many top-talent workers will work through lunch or breaks to get the job done. Don't let them. Your employees should feel comfortable disconnecting from the company during breaks, after work hours, and on weekends. 

Besides that, manage workloads effectively. Overloading employees with excessive tasks quickly leads to burnout. Developing job descriptions that ensure every necessary task is taken care of is a great start in the right direction. Be bold and assess workloads to ensure they are manageable and evenly distributed. Adjust deadlines, redistribute tasks, or hire additional staff to alleviate pressure if necessary. 

Your top talent may get bored. Sure, they're great at what they do, but they might only want to do it for a while. A lack of career development opportunities contributes to burnout by making employees feel stuck or unmotivated. Offer cross-training, professional development, and clear paths for career advancement. Investing in employees' growth promotes a positive work environment and reduces burnout.

Retaining Top Talent is Critical

We have discussed seven steps for retaining employees that pertain to most businesses. While they don't guarantee that your top talent will stay put, they dramatically increase your odds of keeping them. Conduct exit interviews for those who do leave and contribute to turnover numbers to find out what was missing.

Remember also that your company's needs are unique. There may be additional ways of keeping top talent engaged that require a little help to implement. 

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