Bouncing Back From Employee Turnover

Introduction
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Employee turnover is a persistent problem for businesses, and it can be incredibly challenging
for companies as they adjust to doing the same or more with less. High employee turnover is
costly and time-consuming, not to mention the negative impact it can have on the morale of
the remaining staff. However, the right approach can improve employee morale and keep your
team members happy, engaged, and motivated. In this post, we'll explore some tips and
strategies for dealing with employee turnover based on two informative blogs.

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The Cost

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Replacing an employee is more expensive than retaining them. When an employee voluntarily
leaves, the recruitment process must begin, which requires time and money. The productivity
burden left by the vacating employee is now placed on the shoulders of their remaining
coworker(s). The reasons for an employee's voluntary departure and the increased workload
can lower the morale of those remaining. As time wanes due to labor shortages, financial and
emotional costs rise.

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We will focus on how to retain employees and improve the morale of those who choose to stay
rather than focusing on all of the numbers related to labor shortages and retention rates. This
focus is because high employee turnover seems to be the new normal, and we want to focus on
things that can have an impact rather than on things outside our control.

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Retention Strategies

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In his blog, "6 Strategies to Reduce Employee Turnover", author Max Freedman offers several
practical suggestions to keep employees happy and motivated. Max recommends providing
regular feedback and recognition, offering flexible schedules and work arrangements, and
providing opportunities for professional development and career advancement. These
strategies can help team members feel valued, supported, and engaged in their work and
reduce the likelihood of turnover.

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Another strategy is to create a positive workplace culture. A healthy workplace culture fosters
respect, trust, and collaboration, promotes work-life balance, and provides a safe and healthy
workplace. Employees who feel part of a positive and supportive work culture are likelier to
stay with the company and contribute to its success.

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ServiceNow author Sarah Tilley similarly emphasizes the importance of offering competitive
compensation and benefits packages and providing opportunities for professional development
and growth. Businesses that invest in their employees' development and provide competitive
compensation and benefits are more likely to retain their top performers and attract new
talent.
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Additionally, Sarah, in her blog, "Real-time data and competition for talent" brings to light the
importance of using real-time data to attract and retain top talent. This includes using data analytics to monitor employee engagement, performance, and satisfaction. I would add that gathering the metrics mentioned by Sarah should be done as transparently as possible and be used to encourage and reward positive employee behavior and not used as a form of manipulation or coercion.
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Communicating to employees upfront and before end-of-year reviews what the measure of
success is and the metrics used to measure success is critical in getting the best out of your
employees. I strongly suggest that any employee ranking metrics used are merit-based and not
quota based. Quota-based ranking systems where rankings are distributed against a bell curve
tend to be tabulated at the end of the year and can leave employees uncertain about how their
performance will measure up. No employee should be surprised at review time. Disappointed,
sure. Blindsided, no.
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Putting It All Together

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So, what are some practical steps that businesses can take to reduce employee turnover and
attract and retain top talent? Here are a few key strategies discussed:

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• Provide regular feedback and recognition. Set up regular check-ins with your team members to provide feedback and recognize and reward them for their hard work and contributions.
• Foster a positive workplace culture. Promote team-building activities and events that help build respect, trust, and collaboration.
• Encourage work-life balance. Do what you can to reduce off-hours work and find ways to take the sting out of having to work off-hours (gift cards, comp-time, meal delivery, etc.).
• Use real-time data and analytics. Transparently use data analytics to monitor employee engagement, performance, and satisfaction.
• Offer competitive compensation and benefits. Besides offering excellent compensation and benefits provide opportunities for professional development and growth.
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Employee turnover is a complex and persistent challenge that businesses must address for the foreseeable future. Focusing on what you can control can reduce turnover, retain top talent, and create a positive and supportive workplace culture that benefits everyone.

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