How to Reduce Worker Turnover

Worker turnover costs companies $4000 per replacement hire.

Worker turnover is a drain on a company’s productivity and overall morale. It also comes at a big financial cost: on average, hiring a new employee takes 52 days and costs $4,000.

Here are 5 tips for retaining the good workers you already have.


1) Hire for qualities that make a worker a good fit for your company’s culture.


There are plenty of jobs that require certain technical skills, or a set number of years of prior experience.

But when you find a candidate who fits these criteria, make sure your hiring manager also takes a close look at the person’s “soft skills.” These include: communication (especially listening) skills, a positive attitude, time management, and the ability to work as part of a team.

Employees who can’t accept constructive criticism or get along with coworkers won’t stick with a company long-term. Worse, employees who lack soft skills can disrupt a workplace to the point where their co-workers will feel driven to seek employment elsewhere.


2) Provide opportunities for employees to cross-train and share knowledge.

Workers who feel they have opportunities for career growth are more engaged and excited about their jobs than workers who feel “stuck.”

Allowing workers to share their knowledge through training, presentations, and mentoring programs also has the benefit of giving them more tools to increase job site efficiency, productivity, and safety.


Training and mentorships reduce worker turnover.


3) Be upfront about the downsides of a job.

Be upfront about the downsides of a job.

A hiring manager should describe both the pros and the cons of a position well before extending a job offer.

If a position is challenging, let candidates know well in advance – and what difficulties they’ll face during a typical work day. Otherwise, the person won’t stick with the job, and your business will have to start the time-consuming (and expensive) process of finding a worker all over again.


4) Offer workers flexibility wherever possible.

Hire adequate staff so that the only employees working additional overtime are the ones who are eager for the extra hours. Other options: offer compressed hours, core hours, or – if it’s available in your area – hours that line up with public transportation.


5) Periodically review your compensation and benefit offerings.

Flexible schedules give workers access to public transportation.

Consistently check in on the competition. You should always be familiar with the hourly wage or salary that similar companies in your area are offering their own employees for the same job.

Your company may be a terrific one to work for, with a positive work environment and lots of opportunities for advancement. But if the pay and benefits aren’t on par with what a company down the street is offering, you won’t be able to retain your best workers. You’ll also have difficulties with attracting new talent when positions open up.





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