How To Improve Staff Retention Rates and Reduce Staff Turnover

Understanding Staff Turnover and Retention Rates

Staff turnover refers to the rate at which employees leave an organisation and are replaced by new hires. This includes both voluntary departures (resignations) and involuntary departures (terminations or layoffs).

Retention rates indicate the percentage of employees who remain with the company over a specific period, typically measured annually.

High turnover rates can significantly impact business performance and morale, leading to:

– Increased recruitment and training costs

– Disruptions in workflow and productivity

– Loss of institutional knowledge and expertise

– Decreased team cohesion and employee morale

– Potential damage to the company’s reputation and employer brand

The Importance of Addressing High Staff Turnover

Addressing high staff turnover is crucial for any business aiming to thrive in today’s competitive market. Here’s why:

  1. Cost Savings
  2. Improved Productivity
  3. Enhanced Customer Satisfaction
  4. Stronger Company Culture
  5. Competitive Advantage

The Three Major Reasons for Poor Staff Retention That No One Talks About

The Role Recruitment Plays in poor Staff Retention

A lot of the problems with retention start at the very beginning – at the recruitment stage. If you aren’t getting your recruitment right, then it’s only a matter of time before you experience poor retention and all the problems associated with it. For most organisations, this is where the problems start.

How Poor OnBoarding Contributes to High Staff Turnover 

Research shows that over 80% of people think their companies’ onboarding is very poor. You have to start strong with new employees or you will lose them.

How Management Drives People Out The Door, Without Trying To

Management don’t mean to drive staff out the door but they manage to do so on a regular basis. Research suggests that 50% of people quit to get away from their manager. 

Old Fashioned and Sometimes Effective Retention Policies and Strategies

Most organisations when trying to improve staff retention rates, consider implementing these proven strategies:

1. Competitive Compensation and Benefits

– Offer market-competitive salaries based on regular industry benchmarking

It’s not just about the money. If you think that more money is the only thing that can fix this then you are mistaken.

– Provide comprehensive benefits packages

If only it were that simple.

– Implement performance-based bonuses and incentives

Management like it but mostly it just annoys people.

– Consider offering unique perks

Perks can help but they will not make up for fundamental mistakes.

2. Career Development Opportunities

– Create clear career progression paths

It’s not always possible and promotion isn’t always the answer. Not everyone wants to be a manager.

– Offer continuous learning and training programs

Learning new stuff isn’t bad for everyone but some people don’t care for it.

– Provide mentorship and coaching opportunities

Not a bad idea, however, it is usually poorly implemented and causes more damage.

– Encourage internal promotions and lateral moves

Makes sense. Surprised it doesn’t happen more often. A lack of imagination is present here. A change in role is often what will work, not just a promotion.

3. Positive Work Environment

– Foster an inclusive and supportive culture

I’m surprised we even have to mention this today but there you have it. Probably should also mention “don’t be a git”.

– Encourage open communication and feedback

Is it safe to do so? Managers are often very sensitive and take things personally.

– Recognize and reward employee achievements

Again, obvious but rarer than you think.

– Create opportunities for team building

Got to be careful with this one. Not everyone likes to hold hands and sing the company song.

4. Work-Life Balance

– Offer flexible work arrangements

Should be mandatory by now, yet not. Treating people like adults needs to come first.

– Implement generous paid time off policies

I know you don’t think you have the money but you do. This will actually save you money.

– Support employee well-being through wellness programs

They can help but it’s better if you don’t make them sick in the first place. Wellness programs are not a cure for you making life difficult.

– Encourage disconnecting from work during non-working hours

Some are very bad for expecting out of hours work, disguising it as “team players”. Stop doing this.

5. Strong Leadership and Management Practices

– Invest in leadership training for managers

Managers are one of the three big problem sources. Any improvement here has a cascading effect.

– Encourage regular check-ins and feedback sessions

With whom?

– Empower employees to make decisions and contribute ideas

Some will appreciate this. Some will not. Like all blanket initiatives they are rarely the answer.

– Ensure managers lead by example

Mmm, not sure we want to follow the example of some managers.

Designing Comprehensive Retention Programs

Here is the traditional approach to create an effective retention program, follow these steps:

1. Conduct a Needs Assessment

– Analyse current turnover rates and patterns

Just how bad is it? What do you want it to be? 

– Gather feedback from employees

You better make it anonymous and buckle up for a rough ride.

– Identify areas for improvement

I suspect improvement will be needed everywhere.

Retention shouldn’t be a program, it should be a by-product of running a great organisation.

2. Set Clear Objectives and Goals

– Define specific, measurable targets

Improving retention can be measured but that’s not the whole story.

– Align retention goals with business objectives

Shouldn’t be hard.

– Establish timelines for implementation and evaluation

Managers may need this.

3. Develop Core Components

– Create a comprehensive retention strategy

Is “Don’t be a git” considered a retention strategy. As I said earlier, this is not a strategy but a way of doing business.

– Include various elements addressing different needs

Every individual has different needs. This is where all the global initiatives fail. There is no single answer.

– Tailor components for different employee segments

This is good, providing you actually understand them.

4. Implement the Program

– Roll out the program in phases

Some steps to recovery rather than a program.

– Provide managers with necessary tools and resources

Tools I can help you with. We have a huge range of tools that managers will need to help with the three major causes of poor retention; recruitment, OnBoarding and Management.

– Communicate goals and benefits clearly

Not so easy. Communication is complex.

5. Continuously Monitor and Evaluate

– Regularly track retention metrics

However, remember good retention is an effective not an objective. We want good retention for the right reasons.

– Analyse the effectiveness of different components

The big three mistakes are the most important components. Be careful you do not fall into the trap of measuring local optima at the expense of the main objective. For example, Cliff installed a gym on site and encouraged people to use it for free. Good idea in principle, however, not everyone likes using a gym. In pressuring people to use the gym, you could be causing new problems that affect retention.

– Make data-driven adjustments

Got to be careful with this one. People are not machines, so unless you are measuring happiness and contentment, you could be missing the point.

Reducing Employee Turnover

Here’s the old fashioned approach to address key factors contributing to turnover. It’s not wrong but its far from sufficient.

1. Conducting Thorough Exit Interviews

People will never tell you what you really need to know in an exit interview. Get an outside body to conduct them at least and you may get some useful info.

– Use a standardised process

This is generally a mistake for the same reason asking all job candidates the same questions is a mistake. Humans are not standardised. They are unique.

– Analyse trends in reasons for leaving

You will be starting with pretty crap data so crap in gives even more crap out. The trouble is you may start to believe it.

– Act on insights gained

Unlikely you will see any true gains with this.

2. Analysing Turnover Data

– Track turnover rates by various factors

This can be useful. You especially want to differentiate between New Hire retention and long Standing retention. These are two very different issues with very different causes. One of the first mistakes organisations make is that they treat both of these as if they were the same thing. They are not.

– Identify patterns and trends

Data can be useful. It can also be misleading.

– Use predictive analytics

I predict that you are not getting to the real cause for your poor retention because none of the conventional approaches will work.

3. Improving Onboarding Processes

Finally we agree on something. Onboarding needs to be done well. In surveys, over 80% of people said that their onboarding was insufficient. A lot more time and effort has to go into onboarding. Hiring a new person is not the end of the process. In fact you are just getting started.

– Create a comprehensive onboarding program

I would add to this that it should be personality-centric, not generic. What one person needs is not what the next needs.99.99% of onboarding programs are generic, so everyone gets the same thing and the same approach. Yet we know everyone is unique. We know that different people will face different challenges. Everyone has their own learning style. There is no common ground. So make sure your onboarding is personality-centric.

– Assign mentors or buddies to new hires

Excellent idea. Unfortunately this is a half hearted passing notion, where it should be really central to things. The mentors you select should also go through a training program and be prepared properly. If they mess up, your retention will suffer, especially your new hire retention.

– Set clear expectations and provide resources

Sounds obvious but rarely happens. I remember getting a job years ago and I had no idea what was expected of me. I don’t even think my boss knew what I was supposed to be doing. 

4. Addressing Workplace Conflicts

– Implement a clear conflict resolution process

Yeh, good luck with that. Policy is unlikely to fix this. Conflicts are human and emotional situations. It takes a manager  with exceptional soft skills to deal with conflicts properly. But they must be properly resolved or you will see people quit and go elsewhere.

– Train managers in conflict management

Managers need to be trained and equipped to deal with conflicts. Most are not. PeopleMaps can provide managers with powerful tools to help them resolve any conflicts they encounter.

– Foster a culture of open communication

Are you providing genuine psychological safety? Really? People are petty and we are all delicate wee flowers. You need to properly prepare people to deal with this. Managers need to be properly prepared and your company culture has to be one where people feel safe to say anything to anyone, especially their boss.

5. Ensuring Manageable Workloads

– Regularly assess workload distribution

It’s not just the workload, it’s about playing to an individual’s natural preferences. If you are doing stuff that comes naturally to you, then you don’t really care if there is a lot of it. However, even the smallest amount of things that are not in your preferences will feel like too much.

– Provide adequate resources and support

Different people need different things supported. Do you know who needs what support? Probably not. Support the wrong things and you will insult and frustrate people.

– Encourage work-life balance

I’m not sure any organisation actually feels this way. If they did, we would spend 3.5 days working and 3.5 days having a life. That’s a balance. However, imagine a company that really believed in this. Imagine how many people would be queuing up at its door to work there. No one would ever quit.

Building Employee Loyalty and Engagement

Enhance employee loyalty through:

1. Recognition and Reward Systems

– Implement formal and informal recognition programs

Very important but sometimes a simple “thank you” will do.

– Celebrate achievements regularly

Be careful with this one as some personality types hate to be in the spotlight. You could end up causing an issue.

– Offer meaningful rewards

There are some things that mean more than money. In fact research indicates that stuff has more value than money. In a study where people were offered $500 in cash or a tablet worth around $500 almost everyone took the tablet. 

2. Transparent Communication

– Share company information openly

There are some personality type where this really matters. They need to be in the loop and consulted on what is going on. Most organisations are not very open and play their cars close to their chest.

– Conduct regular town hall meetings

I am not convinced of big meetings. People are reluctant to speak up in big meetings so they tend to be a bit one way.

– Provide channels for employee feedback

Your informal channels will be of more use than your formal ones.

3. Opportunities for Professional Growth

– Offer tuition reimbursement or support for certifications

Some people like to learn new things and feel like they are growing. Facilitate it where requested. Encourage it. Bizarrely, some organisations dissuade people from learning stuff as they worry they will leave once they have more skills. I think this is a short sighted approach.

– Create cross-functional project teams

It’s good to mix it up and have people work with a variety of people in a variety of situations and projects. This helps avoid the Taylor effect. Many of our production systems were designed to be simple so that anyone could do it, thereby making people easily replaced. But it also can make the work very boring. You need to keep it interesting for each person. You have to meet their needs and these needs will vary. 

– Provide opportunities for industry events

  1. Creating a Sense of Purpose

– Communicate the company’s mission and values

This is tricky, as not that many organisations can properly verbalise their mission and values. It is very difficult to come up with something that doesn’t sound like a lot of “bollocks” to the staff. Can you actually say something people can believe in and get behind. Not easy.

– Show how individual work contributes to goals

We all want to feel relevant and sometimes that’s not obvious. You want people to feel that what they do matters and sometimes you will need to illustrate exactly how.

– Engage in corporate social responsibility

This used to be part of every organisations articles of association but in the nineties it was no longer law and so was largely removed. By law, companies now need only serve their shareholders these days. However, smart, forward thinking, companies take social responsibility very seriously indeed.

Retaining Top Talent

Implement tailored strategies for high performers. Actually I would go further than this and do it for every single person that works for you. If they were worth hiring and worth paying every month then they should be worth keeping and they should feel like you want to keep them.

  1. Provide Challenging and Meaningful Work

– Assign high-impact projects

We all do meaningful work. Do what you can to make sure we all fell that way.

– Offer leadership opportunities

Some people will really appreciate the chance to be a boss, some would not thank you for it. Make sure you know who wants and who would be good at it.

– Encourage innovation

One of the most overlooked areas is innovation. People are amazing and come up with amazing innovations, however, most organisations discourage this, preferring that people just do what they are told. You would be rare indeed if you actually encouraged and facilitated innovation.

  1. Offer Exclusive Development Opportunities

– Provide access to executive coaching

Some people need to believe that they have what it takes to move into management. Some people believe it but need more soft skills to do it well. Coaching can help in both situations.

– Create rotation programs

The truth is most people do not know what they want to do or what they may be naturally good at. Trying various things can help them stumble across something they have an aptitude for. Encourage it.

– Offer sabbaticals or extended learning

This is very cool and if word gets out, this is the kind of thing that people join your company for.

  1. Create Personalized Career Advancement Plans

– Map out career goals

Most organisations and managers are too afraid that an employee will leave them, so they never talk about their career. The smarter move, albeit the more courageous one, is to put your staff members’ career before your own needs. No one does this, so you would be pretty special indeed.

– Provide regular feedback and guidance

Make the time for this. It will be rewarding. It will help improve your retention.

  1. Implement Succession Planning

– Identify potential future leaders

None of us likes to think about our own demise but you should look to the future. Who is going to take over from you?

– Provide leadership development opportunities

Again most organisations worry that people will quit if they do this. They are more likely to quit if you don’t.

– Create clear advancement pathways

It’s not always obvious how someone may progress in your organisation. Figure it out and not just the up and down. How do people go sideways too?

Long-term Employee Retention

Long term retention is money in the bank.

For sustainable retention, focus on:

  1. Building a Culture of Longevity and Loyalty

– Celebrate employee milestones

It’s a little corny but some people like corny.

– Share success stories

We all like a good story

– Create alumni networks

A sense of belonging appeals to human nature.

  1. Continuously Adapting Retention Strategies

– Stay informed about changing employee expectations

Yes, you need to talk to them about this stuff and not just pretend they will never quit.

– Regularly review and update policies

Many of the problems we experience in our organisations are due to policies that no longer service us and indeed harm us.

– Be open to innovative approaches

We are more fearful of change than you would imagine.

  1. Fostering a Sense of Community

Not an easy thing to create but worth it if you manage it.

– Encourage employee resource groups

– Organize company-wide events

In the old days company events were very commonplace and often paid for by the company. It died out in the eighties but could be worth reinstating.

– Support employee-led initiatives

Organisations tend to get nervous when staff get organised. I encourage you to overcome this.

Measuring the Success of Retention Efforts

To ensure your retention strategies are effective, track these metrics:

  1. Overall retention rate
  2. Voluntary turnover rate
  3. Time-to-fill for open positions
  4. Employee satisfaction scores
  5. Cost of turnover – the real cost
  6. Performance metrics

Conclusion

Improving staff retention rates and reducing turnover requires a multifaceted approach. By implementing comprehensive strategies and continuously monitoring their effectiveness, organisations can create a work environment that attracts and retains top talent.

Take Action Today

Contact PeopleMaps today about how we can help you quickly improve your retention.

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