There’re a few ways to gauge whether a business is truly successful in its endeavours. However, one of the main ways to determine this is by analysing their turnover rate. Are staff loyal and feeling fulfilled in their roles? Alternatively, would they rather be anywhere else and are they planning on leaving? Ultimately, the answers to these questions can be very telling.
That said, it’s worth asking the big question here; how do businesses ensure a low staff turnover rate?
Before discussing how to gain a low staff turnover rate, it’s worth considering the negative impacts of a high staff turnover rate. If workers are leaving in high numbers, then a business will simply be referred to as a ‘revolving door’ business. This means that no one settles for long, that nearly everyone is unhappy in their roles, and that belief in the business is paper thin at best.
Obviously, none of these things are good. If these issues aren’t resolved quickly, then a negative reputation will start to develop. New talent will avoid the company and recommend their skilled friends and ex-co-workers to also avoid the firm at all costs. Online reviews, bad press and business collapse can all follow on from here – eventually it all spirals out of control.
Now to discuss the ways to improve things here, starting with staff bonuses. When employees feel like there’s wiggle room with their pay, they’re more likely to work harder. Few workers would turn down the chance to earn a little extra, and the opportunity to do so is often enough to entice an employee to stay at the workplace for a while longer. Even if everything else is subpar, some people will stick it out and grit their teeth for a higher salary.
A few bonus payments don’t go amiss for most firms. After all, as TNT has rightly pointed out that turnover can be very costly, so cutting these expenses is in a business’s best interests. Remember, new staff need to be trained and brought into the fold in a smooth transition, and neither task comes cheap. Therefore, most businesses should feel comfortable in a compromise here, and offering bonuses and flexible pay instead. After all, it’s the cheaper option at least!
Catering to careers
Of course, pay isn’t everything, and just because you’re offering extra supplements, it doesn’t mean every other problem can be ignored. Every career is a journey, and employees love to feel like they’re constantly moving forward and also protected. That sensation of safety, job security and progression is unmatched, and they play huge parts in ensuring a low staff turnover rate.
The best businesses realise that HR departments have a significant role here, helping staff feel content and safe in their work. Problems are listened to, misbehaving employees are held accountable for their actions, and a positive workplace culture is developed. On top of career progression opportunities, workers are more likely to remain with their places of employment for the long haul when these facets of a business are enforced.
Ultimately, a low staff turnover rate can be effectively enforced when a positive culture is developed. When employees are respected and treated with humane consideration, they may just remain loyal to the firm that has their best interests in mind. Most workers want to feel respected, nurtured and motivated, and it’s the responsibility of the business to make sure that happens.