Five Tips to Reducing Your Business' Churn Rate

ba-blog-1

Employees are the lifeblood of any business, pumping life into its different limbs. From managing inventory to answering customer queries, employees manage a bulk of the legwork, which explains why an employee leaving your company can drastically damage your business. A high churn or attrition rate even in your low level staff can impede your ability to scale quickly and efficiently. Not only does your workload become unevenly distributed towards your existing workforce, but it also results in higher costs since you have to allocate budget into rehiring and retraining people to fill in spots. Here are five tips to reduce your business' churn rate:

Promote From Within

Employees don't want to stay with a company that won't move them up the ladder even after decades of hard work and loyalty. They will likely jump ship if you get outside hires to fill in management-level staffing. Show your workforce that they can move up the corporate ladder by promoting from within. Aside from keeping your turnover rate minimal, this management technique and/or business policy can be beneficial in many other ways. For starters, inside hires already know the business' work environment, culture, vision, and dynamics.

Ask People What They Want

People often dismiss the brutally simple way of doing things for the more sophisticated answers that make them look like a genius. More often than not, directly asking your employees what they want can yield the answers you seek. Ask people what they want directly. Of course, this could be exhausting if you employ a large workforce of several dozen people in which case an employee engagement survey may be a more fitting method of getting feedback.

Invest in More Amenities

Amenities, such as a game room or an espresso machine, seems like nothing but an unnecessary expense, but these small office features can actually improve your employee retention rate over the long term. In fact, a lot of tech giants, such as Amazon and Google, are investing more on work perks to get employees to stay in the office and work longer. Some have gone to great lengths to bring comfort to their employees, offering swimming pools, gyms, spas, and free meals all day long. Google, for example, have multiple cafeterias scattered around its campus. If you outfit your workplace with amenities, employees won't just perceive it as a place they spend eight hours of their day doing work. Instead, they see it as a balanced environment where they can de-stress and relax in between work.

Establish Respect and Trust

Build an employer-employee relationship that has trust and respect at its foundation. Show your employees that you trust them to make the right decisions and perform well by delegating bigger responsibilities that enable them to grow and gain new skills. Help them find opportunities for continuing education. In equal measure, give them the respect and appreciation they desire not only as professionals but also as people. As a manager or employer, make it a priority to outwardly show gestures of respect for your employees on a daily basis.

Reward People

When you reward the right amount and in the right times, the gesture can be a powerful tool for retaining your existing employees and attracting new talent. But due to lack of creativity, most businesses reward their employees' good deeds with monetary compensation. And while every employee could always use extra cash, it's simply an unsustainable method of rewarding your workforce. Be creative with how you reward your employees. Ideas include office massages, healthy snacks, free lunch, ride credit on Uber/Lyft, sporting event tickets, and even a handwritten note.

Final Thoughts

Reducing your employee's turnover rate is a matter of finding a balance between what your workforce wants and what you can offer within budgetary limits. Last but not least, remember to streamline your business' hiring process as this can single handedly make the difference between an effective, capable workforce and an ineffective one.

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Saturday, 22 September 2018
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips

Leaderboard

1
Ron Immink
731 Points
2
Michael Lane
711 Points
3
Fionan Murray
672 Points
4
Jill Holtz
526 Points
5
ContentLive
252 Points
View Leaderboard