Turnover is a major problem in some industries. In fact, the turnover rate in the hospitality industry is over 70 percent. There are many reasons why turnover happens. Employees want higher salaries, they want to advance their careers, they get burnt out, etc. However, high employee turnover can be harmful for your business. So, it is a good idea to figure out how to reduce it. Here are some great strategies for reducing employee turnover.
1. Tuition assistance
The cost of a college tuition has skyrocketed in the past decade or two. Many colleges and universities now cost $35,000 – $60,000 per year. This makes any tuition assistance incredibly valuable to younger employees who are pursuing education. If your company can afford tuition assistance programs, then it is a great thing to offer your employees to incentivize them to stay at your company.
2. Regularly make promotions
If you have a need to fill a new position in your company, you should first consider employees who already work for your company for the position. There is one key reason why this is important for reducing turnover; it sends the message that there is opportunity for career advancement at your company to your employees. If your employees feel that they can actually move up the corporate ladder at your company, then they will be much more inclined to stay there.
3. Make the work environment more fun
You may be tempted to rule with an iron fist at your company in order to preserve order and keep employees on task. However, this can backfire on you. This is because employees are more likely to stay loyal to a company where work is fun. So you should make an effort to make work more enjoyable for your employees. This could mean putting a ping pong table in your break room, having casual dress days, scheduling an office wide basketball tournament, etc. Enjoyment is just one more benefit that you can provide to your employees to get them to stay at your company.
4. Offer performance-based bonuses
Performance-based bonuses are something that your employees are likely to value. This is because it shows that your company rewards hard work, is fair, and provides an opportunity for its employees to make more money. The desire to earn these bonuses can help your employees to stay focused on working for your company.
High employee turnover is something that you want to avoid at your company. This is because it costs a lot of time and money to replace departing employees. Instead, you should try to retain as many as you can, as long as they are good quality employees. Using these tips can help you reduce your employee turnover rates.