Reducing employee turnover
Craig Thomas

Reducing employee turnover

15th March 2016

High employee turnover hurts a company's bottom line. Not just because of the disruption it causes to internal processes and workflow, but the time and expense of recruiting and training new employees. Experts estimate it can cost as much as twice an employee's salary to find and train a replacement. High turnover rates can also be damaging to morale among your remaining employees.


While some employee turnover is natural and to be expected, keeping this under control is important to ensure your business remains efficient. So what are the main contributing factors and what can you do to reduce employee turnover?


Recruit well

The starting point in reducing employee turnover is to make sure you are hiring the right people to begin with. Define the role clearly - both to yourself and your candidates - so you're clear on the skills and qualities you're looking for. Then be absolutely sure the candidate is a great fit not only for the role, but for your company culture, managers and co-workers.


Get the package right

Be sure you are paying employees a fair salary for their work (or better) and offer them competitive benefits, otherwise who can really blame them for moving on? This might seem like a no-brainer, but it's surprising how few companies offer pay increases that keep up with an employee's development and actual rising worth.


Offer opportunities for development and growth

Employees place a huge value on the opportunities for growth. There's a proven link between the lack of development opportunity and intention to leave. Make sure you invest in your employees and have regular reviews so they have a clear view of their future. If you're able to offer positive opportunites for personal advancement and growth - through training, experience, learning or promotion - it will have a significant impact on your employee turnover.


Create a positive company culture

Make sure your company culture cultivates happy employees. That may sound a bit undefinable, but the numbers behind it are anything but. It has been shown there is a strong correlation between employee happiness and job satisfaction, absenteeism and employee alignment with company values. How do you make your company somewhere people want to stay?


  • Recognise and reward your employees
    Make sure your employees feel appreciated and valued by recognising and rewarding their efforts and success. If your rewards are specific, tangible and public, you too will be rewarded - with your employees' loyalty.
  • Empower your line managers
    One of the contributing factors to an employee's happiness and engagment is their relationship with their line manager. Encourage your managers to thank, praise and reward their team and give them the tools to do so - it will make a huge difference.
  • Provide an inclusive vision
    Giving employees a clear vision of both the company's goals, and their personal goals, increases their sense of belonging and loyalty to the company. A recognition programme that supports your core values and gives clear KPIs can play a significant part in establishing this.


Investing in the happiness of your employees will pay dividends in engagement, productivity and yes, employee retention.


Active are experts in delivering employee reward and recognition programmes. Our online recognition platform provides a comprehensive range of modules to help you build a successful reward and recognition strategy for your organisation. For more information please contact us

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Craig Thomas
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