Employee Turnover: How To Reduce It & Keep Top Performers
Did you know that the average employee turnover rate in the US, stands at 44%? For employers struggling to retain their top talent, this figure is alarming.
An employee’s decision to quit can be driven by a cocktail of reasons, including a lack of growth opportunities, bad leadership, no flexibility, and unrealistic expectations. Basically, an overall lack of employee engagement.
While the employer isn’t always at fault, you need to ensure that you do everything in your power to reduce your annual employee turnover rate.
Besides improving your recruitment and selection process, which will ensure that you find the proper fit for your company, there are some perks and benefits that you must offer to make your workforce stick around.
Continue reading to learn about the 3 most in-demand perks for the modern workforce.
Let’s get started.
1. Provide Ample Training & Development
A few decades ago, employee development was considered optional in many industries.
However, today, where there’s a constant need to progress and keeping up with the market, training, and development are no longer an “option”, but a need.
Some candidates even actively seek employers that invest in the professional development of their employees. In fact, according to one survey, 40% of employees said that they’d quit their jobs if they received inadequate job training during the first year.
By offering training, you can:
- Attract ambitious candidates and retain talented ones.
- Gain a competitive edge in terms of being an ideal employer in the industry.
- Stay ahead of the competition by acquiring and developing new and in-demand skills.
If you don’t have a formal training and development program, here are some tips to develop one:
- Establish goals – First, you have to specify what you hope to accomplish by offering training. For example, besides retaining employees, the goal could be to prepare employees to handle a future project that requires certain skillsets.
- Decide on a training format – Considering your budget and requirements, decide how you’d like to offer training. Do you want to provide online courses via a cloud-based learning management system, or do you want to arrange workshops and bring in trainers? These are just some of the questions that you need to ask yourself.
- Set KPIs – You need to ask yourself how you’re going to measure the effectiveness of your training programs. You can leverage your employee performance plan for this purpose.
As a final note, having a formal training program isn’t enough to bring the employee turnover rate down.
Remember, over 70% of on-job training occurs informally.
2. Provide Generous PTO
According to a survey, roughly 69% of employees reported receiving paid time off.
Providing PTO is a basic right in different parts of the world (and even by some employers in the US). Considering that, it’s surprising to see that only around 39% of employees still aren’t offered any kind of paid time off. Since providing work-life balance is more important than ever, PTO is one of those benefits that you must offer.
But, how do you go about offering paid time off?
Here are some tips:
- Decide on a format – First and foremost, you have to decide on a format for the PTO. For that, you can either offer a lump-sum, paid days off to employees at the beginning of each year, or you can have your employees accrue leaves throughout the year.
- Specify the days – After deciding on a format, specify what type of vacations you want to include in your PTO pool. These could include sick leaves, personal days, maternity leaves, vacation time, etc. See the industry standards, and try to go one step further to gain a competitive edge.
- Set rules – once you’re done with the specifics, it’s time to set up formal rules for your PTO policy, and share them with your employees.
Companies, such as United Healthcare, have taken a unique approach by allowing their employees to purchase additional PTO. For example, eligible employees at UH can purchase an extra week of paid time off, providing them with greater flexibility over their work-life balance.
3. Offer Student Loan Assistance
Currently, the collective student loan debt in the US stands at $1.41 trillion dollars. This crisis – which only gets worse every year, also affects you as an employer.
Employees with student debts are likely to work multiple jobs and gigs at once, to be able to repay their loans. This affects their overall performance, which, in turn, impacts their company. Considering that, many employers have started offering student loan repayment assistance as a part of their benefits – and their employees have never been happier.
Needless to say, by offering this perk, you can experience a dramatic drop in employee turnover rate.
To conclude, it’s safe to say that retaining employees boils down to one thing – offering incentives for them to stay. The tricky part is identifying which incentives to offer. With the above 3 perks, you can easily control your employee turnover rate and retain your top talent, regardless of your industry.