Employers, Here’s How to Reduce Turnover

Employers who think their workers are happy and content might be shocked by the results of a recent survey by staffing firm Robert Half.

According to the results, more than four in 10 workers (42 percent) said they’re likely to look for a new job within the next year.

For respondents ages 18 to 34, the number likely to seek new employment in the next 12 months jumps to 68 percent.

Part of the retention challenge for executives is understanding why a good employee might want to leave.

Inadequate salary and benefits is the top reason workers said they would quit. However, CFOs reported the number-one reason they think good employees would resign is limited growth potential.

“Once turnover begins, it’s often too late to stop it,” said Robert Half senior executive director Paul McDonald. “Employers should not assume their teams are content. They need a pulse on how employees truly feel about their job and the company, and a willingness to take action when necessary.”

Robert Half offers five tips to reduce turnover:

• Gauge job satisfaction. Don’t presume all is well. Ask people what they think about their work, such as how interesting or challenging they find it. Regular one-on-one meetings are effective, but for brutally honest feedback, such as worker happiness with management, consider conducting an anonymous survey.

• Increase salaries. It’s no secret that money talks — and persuades or changes minds. If it’s been some time since you’ve evaluated your company’s compensation structure, benchmark current employee wages against sources like the Robert Half Salary Guides. Strive to offer above-average compensation for your city and industry.

• Leverage bonuses. These financial incentives are one way to retain highly skilled team members, especially if your company is undergoing a major change like a merger or acquisition.

• In addition to merit-based rewards, look for opportunities to award spot bonuses following key projects or periods of extraordinary performance.

• Help employees recharge. Even well-compensated staff are more likely to quit if they’re continually stressed and overworked. Increase the chances of keeping staff by allowing them the freedom they crave. Think autonomy, flextime, remote work, on-site amenities and generous paid time off.

• Show them the way. If employees don’t see an obvious path upward within the company, they’ll make their own way — out the door. Keep today’s top performers and tomorrow’s leaders motivated by having regular discussions about in-house growth prospects, as well as your company’s willingness to invest in their future.

Don’t wait until a good employee is halfway out the door before you implement some, or all, of these tips.

Copyright Today’s Credit Unions