Losing good staff is more than inconvenient - it costs your business money, skills and valuable experience.
Research indicates the cost of replacing an employee is about 1.5 times their annual salary. High staff turnover also impacts on team morale and performance.
Why staff leave
The mains reasons given for staff leaving are:
- unsatisfactory pay
- issues with supervisors
- disengagement from bosses or work
- poor management
- lack of development opportunities
- limited work-life balance.
[top of page]
Ways to reduce staff turnover
It is in the interests of your business to accommodate the different work and personal needs of employees.
Staff who are supported are more likely to feel worthwhile, remain loyal and speak highly of your business. Here are some ways to minimise turnover:
- provide good leadership
- give regular employee feedback
- offer challenging and meaningful work
- discuss performance and career goals
- provide flexible work options
- ensure salaries are competitive
- support staff training and development
- offer reward and recognition programs
- be aware of the needs of different cultures and age groups
- provide clear career paths
- deal with staff issues as they arise.
Many of these initiatives are low cost and easy to implement. They will help reinforce your employer brand and result in greater job satisfaction and even higher productivity.
[top of page]
Staff surveys
To find out what your employees think about your business, consider organising staff surveys and hold exit interviews to discover why people leave.
It is also worthwhile comparing your workforce turnover with the average rate in your industry sector.
[top of page]
More information