The employee turnover refers to how many workers leave an organization and then get replaced with new employees. Assessing this percentage or number helps employers find out why are people leaving their company or readjust their budget to cover their staff needs. Today we are going to analyze a couple of strategies on how to reduce employee turnover.

How to Reduce Employee Turnover – Useful Tips and Tricks

1. Choose the Right People

The first step if you want to learn how to reduce employee turnover is to choose the right people to hire in the first place. It’s better to invest some more time and money in competency screening and behavior-based testing than to end up with the inappropriate employee. Make sure that they have the skills they claim to have and that they are suitable for the position you have.

2. Offer Competitive Pay

Naturally, everybody wants to be compensated well for the work they do. Think about the fact that each person needs to cover their standard expenses (food, utilities, housing, etc.), as well as some extras. If you don’t offer them a competitive pay and benefits, they will surely look for a business that will. But how can you assess the right pay? A good strategy is to do some market research on the wages. Find a similar job in the area and see the pay there. Moreover, learn how to reduce labor costs but keep your employees happy.

3. Offer Rewards

Besides the typical pay you offer to every employee, you should make sure you reward the people who work hard for your company. Make sure that they understand they have the possibility of advancing in your company and that you promote them if they deserve it. Occasionally, offer them some other rewards as well: tickets to the cinema, a day off, etc.

4. Don’t Be Afraid to Fire People

Another good idea if you want to know how to reduce employee turnover is to fire people if they’re not productive. It can happen that an employee loses their interest in the job or they’re not performing well enough on a position you promoted them to. In this case, you shouldn’t be afraid to fire them. This might even help you save the project and even the business.

5. Share Information

It’s important to make the employees feel that they have something to learn from their coworkers or superiors. In this sense, try having training sessions, presentations, team assignments or mentoring programs. In general, employees love to share what they already know in the field. Moreover, when one is teaching others, they are also cementing their information.

6. Ensure Advancement Opportunities

Employees don’t like staying too much in a position in a company, so don’t let them stagnate at work. If this happens, most likely, they will start looking for a different position where they can advance. Besides the financial reward, people are also interested in moving up the career ladder and increasing their knowledge and skills. Show them right from the start what is the projected career path to give them a sense of purpose and direction.

7. Pay Attention to the Balance

Besides ensuring your employees the adequate working conditions, it’s important to keep an eye on the balance in their lives. If you notice they have stressful, monotonous, or complicated work, think of this as a factor that may influence them to choose another job. The easiest way to make your employees leave you is to work them until exhaustion. Don’t allow them to work too much and hire more people if you notice there’s a need for them.

8. Be Flexible

In the recent years, more and more people declared that they appreciate their employer’s flexibility. This doesn’t mean you need to cut off the work you need, only that you can get flexible with the working hours or days. You can let them work from home one day a week, adjust their working hours according to their needs, etc. If you make sure this doesn’t affect your workflow, there’s no reason not to let them enjoy these benefits.

9. Listen to Them

This is such a simple advice on how to reduce employee turnover, yet not many managers listen to it. Most of the time, there are clear hints that your employees plan on leaving you, you just need to listen. Pay attention if they complain about the salary, the working hours, their colleagues, etc. You can simply ask them to have a one-on-one discussion and see how can you solve these problems for them. If you don’t want to get that personal, you can hand out some anonymous feedback forms.

10. Train Well the Managers

If you notice that one or several managers have problems with a high turnover, it’s time to see what they are doing wrong. See what management style they are using and work with them to find a solution. However, don’t rush to fire them, since this might be costlier for the company than retraining them. Make sure they know what to do in certain situations and that they have an adequate behavior to the employees.

11. Make It Fun

Nobody likes a boring workplace or boring coworkers. For this, make work fun as much as you can. Of course, this doesn’t mean you should neglect the tasks while learning how to reduce employee turnover, but just include interesting activities throughout the day. Offer them a break and invite them to do some exercising outside, surprise them with some movie tickets from the company or have a lunch barbecue.


It’s not easy to learn how to reduce employee turnover, mainly because there can be so many factors influencing it. From the work hours to the workload, colleagues, and general atmosphere in the company, there are plenty of causes for a high turnover. Luckily, there are also some simple and easy ways to find the cause of this phenomenon and fix things up. A simple discussion with an employee can show them that you care and are interested in making them happier.

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