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7 Strategies For Reducing Staff Turnover

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7 Strategies for Reducing Staff Turnover

Introduction:

Employee turnover poses significant challenges for organizations, impacting productivity, morale, and financial stability. According to the Society for Human Resource Management (SHRM), the average cost-per-hire is $4,129, with an average time-to-fill of 42 days. Additionally, the cost of losing an employee can range from 16% to 213% of their annual salary, depending on their level of expertise and role within the organization. It’s imperative for businesses to adopt strategies to mitigate turnover and retain valuable talent. This whitepaper explores a holistic approach to reducing turnover, incorporating insights from performance management, employee engagement, and recognition.

Check out what unwanted staff turnover is costing your business on our staff turnover calculator here: https://explore.prosperex.com.au/calculate-your-roi/

Understanding the Causes of Turnover:

Before addressing turnover, organizations must understand its root causes. Several factors contribute to employee turnover:

      1. Lack of Career Development: Employees seek opportunities for growth and advancement. A study by LinkedIn found that 94% of employees would stay longer at a company that invests in their career development.

      1. Work-Life Balance: Striking a balance between work and personal life is crucial for employee satisfaction. Research by FlexJobs suggests that 75% of employees consider work-life balance a key factor in job satisfaction.

      1. Compensation and Benefits: Competitive salaries and comprehensive benefits packages are essential for attracting and retaining talent. Glassdoor reports that 45% of employees would leave for better pay and benefits.

      1. Work Environment: Toxic cultures, poor leadership, and interpersonal conflicts drive employees away. Gallup’s research shows that highly engaged employees experience 59% less turnover.

    Interestingly, salary is becoming less of a defining factor when deciding to stay in your current role. A recent study by Flexjobs found that employees are stuck in jobs they dislike and that 30% of them want to quit. The survey of 2,202 workers gave the following five top reasons for saying, “Take this job and shove it”:

        1. Toxic company culture (62%)

        1. Poor Management (59%)

        1. Low Salary (56%)

        1. lack of healthy work-life boundaries (49%)

        1. Not allowing remote work (43%)

      Strategies for Reducing Turnover:

          1. Invest in Employee Development: Offer training, workshops, and mentorship programs to foster skill development and career growth. Empowering employees with opportunities for advancement increases their commitment to the organization.

          1. Promote Work-Life Balance: Implement flexible work arrangements and support programs to help employees manage their personal and professional responsibilities. Flexibility contributes to higher job satisfaction and reduces burnout.

          1. Review Compensation and Benefits: Regularly benchmark salaries and benefits to ensure competitiveness. Transparent and fair compensation practices demonstrate an organization’s commitment to valuing its employees.

          1. Foster a Positive Work Environment: Cultivate a culture of respect, inclusion, and open communication. Recognize and address issues promptly to maintain a healthy workplace climate.

          1. Enhance Performance Management: Implement robust performance evaluation processes that provide constructive feedback and goal alignment. Clear expectations and regular feedback motivate employees to perform at their best.

          1. Boost Employee Engagement: Engage employees through meaningful work, opportunities for involvement, and recognition programs. Gallup’s research indicates that engaged employees are 74% more likely to stay with their current employer.

          1. Implement Recognition Programs: Recognize and reward employees for their contributions and achievements. Effective recognition programs reinforce desired behaviours and foster a culture of appreciation.

        Conclusion:

        Reducing staff turnover requires a multifaceted approach that addresses various aspects of the employee experience. By investing in employee development, promoting work-life balance, reviewing compensation and benefits, fostering a positive work environment, enhancing performance management, boosting employee engagement, and implementing recognition programs, organizations can mitigate turnover rates and retain their top talent, thereby minimizing the substantial financial losses associated with employee turnover.

        Prosper EX

        Prosper EX is a People Success Platform that enables companies to engage their people, better manage performance, drive leadership development, and build recognition programs across their business. Our customers see on average 36% improved employee performance and 35% improved staff turnover within the first year, delivering significant return on investments. Some of our customers include Bridgestone Tyres, Silk Laundry and Blue Bungalow.

        References:

            1. Society for Human Resource Management. (n.d.). “2019 Human Capital Benchmarking Report.”

            1. LinkedIn Learning. (2021). “2021 Workplace Learning Report.”

            1. FlexJobs. (n.d.). “The State of Remote Work 2021.”

            1. Glassdoor. (n.d.). “Employment Confidence Survey.”

            1. Gallup. (n.d.). “State of the Global Workplace Report.”

          https://explore.prosperex.com.au/calculate-your-roi/7 Strategies for Reducing Staff Turnover

          Introduction:

          Employee turnover poses significant challenges for organizations, impacting productivity, morale, and financial stability. According to the Society for Human Resource Management (SHRM), the average cost-per-hire is $4,129, with an average time-to-fill of 42 days. Additionally, the cost of losing an employee can range from 16% to 213% of their annual salary, depending on their level of expertise and role within the organization. It’s imperative for businesses to adopt strategies to mitigate turnover and retain valuable talent. This whitepaper explores a holistic approach to reducing turnover, incorporating insights from performance management, employee engagement, and recognition.

          Check out what unwanted staff turnover is costing your business on our staff turnover calculator here:  

          Understanding the Causes of Turnover:

          Before addressing turnover, organizations must understand its root causes. Several factors contribute to employee turnover:

             

              1. Lack of Career Development: Employees seek opportunities for growth and advancement. A study by LinkedIn found that 94% of employees would stay longer at a company that invests in their career development.

              1. Work-Life Balance: Striking a balance between work and personal life is crucial for employee satisfaction. Research by FlexJobs suggests that 75% of employees consider work-life balance a key factor in job satisfaction.

              1. Compensation and Benefits: Competitive salaries and comprehensive benefits packages are essential for attracting and retaining talent. Glassdoor reports that 45% of employees would leave for better pay and benefits.

              1. Work Environment: Toxic cultures, poor leadership, and interpersonal conflicts drive employees away. Gallup’s research shows that highly engaged employees experience 59% less turnover.

            Interestingly, salary is becoming less of a defining factor when deciding to stay in your current role. A recent study by Flexjobs found that employees are stuck in jobs they dislike and that 30% of them want to quit. The survey of 2,202 workers gave the following five top reasons for saying, “Take this job and shove it”:

               

                1. Toxic company culture (62%)

                1. Poor Management (59%)

                1. Low Salary (56%)

                1. lack of healthy work-life boundaries (49%)

                1. Not allowing remote work (43%)

              Strategies for Reducing Turnover:

                 

                  1. Invest in Employee Development: Offer training, workshops, and mentorship programs to foster skill development and career growth. Empowering employees with opportunities for advancement increases their commitment to the organization.

                  1. Promote Work-Life Balance: Implement flexible work arrangements and support programs to help employees manage their personal and professional responsibilities. Flexibility contributes to higher job satisfaction and reduces burnout.

                  1. Review Compensation and Benefits: Regularly benchmark salaries and benefits to ensure competitiveness. Transparent and fair compensation practices demonstrate an organization’s commitment to valuing its employees.

                  1. Foster a Positive Work Environment: Cultivate a culture of respect, inclusion, and open communication. Recognize and address issues promptly to maintain a healthy workplace climate.

                  1. Enhance Performance Management: Implement robust performance evaluation processes that provide constructive feedback and goal alignment. Clear expectations and regular feedback motivate employees to perform at their best.

                  1. Boost Employee Engagement: Engage employees through meaningful work, opportunities for involvement, and recognition programs. Gallup’s research indicates that engaged employees are 74% more likely to stay with their current employer.

                  1. Implement Recognition Programs: Recognize and reward employees for their contributions and achievements. Effective recognition programs reinforce desired behaviours and foster a culture of appreciation.

                Conclusion:

                Reducing staff turnover requires a multifaceted approach that addresses various aspects of the employee experience. By investing in employee development, promoting work-life balance, reviewing compensation and benefits, fostering a positive work environment, enhancing performance management, boosting employee engagement, and implementing recognition programs, organizations can mitigate turnover rates and retain their top talent, thereby minimizing the substantial financial losses associated with employee turnover.

                Prosper EX

                Prosper EX is a People Success Platform that enables companies to engage their people, better manage performance, drive leadership development, and build recognition programs across their business. Our customers see on average 36% improved employee performance and 35% improved staff turnover within the first year, delivering significant return on investments. Some of our customers include Bridgestone Tyres, Silk Laundry and Blue Bungalow.

                References:

                   

                    1. Society for Human Resource Management. (n.d.). “2019 Human Capital Benchmarking Report.”

                    1. LinkedIn Learning. (2021). “2021 Workplace Learning Report.”

                    1. FlexJobs. (n.d.). “The State of Remote Work 2021.”

                    1. Glassdoor. (n.d.). “Employment Confidence Survey.”

                    1. Gallup. (n.d.). “State of the Global Workplace Report.”

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