Hitting the Bull’s-Eye to Lower Employee Turnover Takes Every Arrow in the Quiver

Here are examples in three key areas where taking a holistic approach can have a positive effect on lowering turnover and the costs associated with it – total compensation, employee communications, and recruiting and on-boarding.

Compensation is traditionally thought of as cash remuneration. But many of your employees work for much more than just their hourly wage. When considering other employment offers, be aware that “compensation and benefits” are broad terms in the eyes of an employee who is considering making a move. If you are serious about employee retention, you will need to be creative with your total compensation package. For example, perhaps to a specific key employee, a generous time off policy is important while another may value straight cash compensation. Now that the economy is turning around, if a competitor comes calling on your key staff members, they won’t be able to match your total compensation and your employee will happily stay where they are – with you and your customers. One word of caution, however, is to be sure that you are on solid ground from an HR standpoint, in terms of discrimination, wage and hour rules, and leave laws. Getting the advice of a certified HR professional is of critical importance here.

The culture of a company is much more than just the mission statement that hangs on the wall in the lobby. Your culture is how you want your company to be perceived by employees, customers, the community and even your competitors. Involve (or at a minimum, inform) employees in the overall direction of the company. Employees who have a stake in creating and executing goals and culture of the company are far less likely to leave. It creates a connection to the company that cannot be duplicated by another firm trying to steal them away. Even consider rewards for adhering to the values of your organization. And, most importantly, the leadership team needs to model those values in a very real way.

The process used for finding, screening and on-boarding a new employee to fill a vacancy is critical to successfully minimizing the cost of turnover. It starts with finding qualified candidates. Don’t narrow your search too much because you only want to see candidates with direct experience. The right choice may just be someone with the innate talent, ability and smarts to work in almost any position. Next, use a systematic approach to selecting the right person though psychometric assessments. At YPP, we have found a next generation tool, Worktraits, to be an invaluable source for both assessment and compatibility analysis. Finally, having a structured on-boarding process that includes engulfing the new team member in your company’s culture is vitally important. Go beyond the “New Hire Checklist” and create a process over several months that truly connects a new employee to your company and watch the results in commitment and dedication that ensures a long term, successful partnership.

Of course, there are many other areas to consider and we recommend soliciting the advice of a qualified HR professional to develop a proactive, inclusive strategy. It will pay dividends in lower costs (i.e. higher profits) many times over. If you need some help, pick up the phone and give YPP a call.

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