• Jamie Reynolds

Ways to lower employee turnover

For most small businesses, labor is one of the highest costs, and nothing drives higher labor costs than higher turnover rates. Between training costs, dips in productivity, and the bad vibes that come with employee turnover, having a revolving door HR department can be a real drag on your bottom line.

While some industries have higher average employee turnover rates due to a variety of circumstances, there are plenty of things you can do to attract and keep quality talent, so you can invest in growth instead of treading water.

Here are a few really good ones:


For a lot of employees, they want to know where they fit in the grand scheme of the business and, more importantly, how they can climb up that corporate ladder. So, make the path forward clear, with useful steps and goals for achieving higher roles within the organization. Even better, have regular one-on-one meetings to determine your employees' career goals and helping them find the best place for them in your organization. These practices may be a touch time-consuming, but in the long run it's much simpler (and cheaper) to get the right people in the right roles, than to constantly train and retrain new employees.


Most people quit a job because of their direct manager, or interpersonal complications with other employees. Both of these issues can be solved by making turnover management a key part of how your management team is evaluated. One unique way to achieve this is to simply establish company-wide attrition targets, and action steps for correcting the problem if a department goes above the number. By making it numbers-based, tying it to management performance, and establishing clear action steps for correction, you will ensure employee turnover is top of mind for your managers, and provide them a pathway to fixing any problems that crop up.


As the marketing guru Simon Sinek put it, "People don't buy what you do, they buy why you do it." The same can be said for your employees. They aren't just working for a paycheck; they want to feel like what they do matters and that their personal goals are aligned with the company's vision. So, if you want to attract the best talent for your business, then start by clearly identifying why you're in business at all and what your company stands for. That way, you'll be able to better identify the types of employees that will fit in your corporate culture and those that will be just another ex-employee in 6-9 months.

These are by no means an exhaustive list of ways to decrease employee turnover, but they're a good start for reducing costs, and having a happier, more productive employee base.

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