4 Time-Tested Strategies To Minimize Turnover Rate
1. An Ownership Culture
One of the most simple and fundamental things that any business can do to increase employee retention is to create an ownership culture where people feel they have skin in the game.
- Provide stock options or other participatory gains
- Promote a feeling of ownership among teams by pointing out achievements
- Provide incentives for excellent work
- Give out company perks that underline the relationship between the firm and its performers
Any of these can be extremely effective in curbing turnover and keeping people more involved in the company as a whole.
2. Respecting the Individual
Companies also get a lot further by cultivating respect for their workers. This might sound obvious, but there is a wide spectrum of companies and ways that they interact with the people who actually help them make profits.
Respect starts in an atmosphere that’s cooperative — where people don’t have to fear things like harassment or retaliation. But it also means accommodating the work/life balance that individuals need to be productive. It means being generous in terms of family time, like providing breast-feeding facilities. And more importantly recognizing that your employee isn’t just a cog in the wheelfirst. This alone is one of the most common indicators of whether a company will experience sky-high turnover, or a stable and happy workforce.
3. The Freedom to Thrive
Above and beyond these first two points, employees also need their freedoms.
Too many companies micromanage people in nearly any level of staff. They do this because of a philosophy of fear — they believe that if given free rein, people will not act in ways that benefit the company. Largely, they’re wrong, and their micromanagement depresses productivity rather than boosting it.
The vast majority of companies that set workers free to build their own standards and best practices get a lot more out of their business operations.
There’s also the issue of advancement. How many times have you heard that people value opportunities for advancement?
We tend to think of this as only a matter of allowing people to climb the ranks toward the top, to push their job titles one step closer to executive level. But that’s not everything that advancement means. Advancement can also refer to the stock options mentioned above, and other kinds of sharing. Too many companies are too stingy with the fruits of their collective labor — they don’t reward long-term work — and so they keep hiring new people, year after year after year.
Keep all of these things in mind when trying to build a sustainable culture and limit turnover at your company.
Interested in learning more about the cost components of turnover? Check out this blog post: The Cost of Employee Turnover
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