A business with a high employee turnover rate is losing a lot more than just workers. There are a lot of costs involved when someone vacates their position within the company, and not all of them are monetary.
It costs money to hire a new employee. Funding goes into recruiting, and making sure the right eyes see your job listings. Time that could be spent making current employees better, is instead put into the hiring process. If any type of tests or background checks are required, those also must be funded. Not to mention that an employee who would normally be putting their efforts into a task must now train the new employee, so you have two fewer people working on their actual jobs.
Besides the financial loss, you are also losing the time and effort that was put into training and coaching the employee, as well as any unique skills or talents they possessed. Even a poorly performing employee can cost the company a lot when the position becomes open.
But what can be done to prevent turnover?
Why try to stop a poorly performing employee from quitting?
Ask yourself this: Why do employees not like their jobs, or under perform at their jobs? Many of the most commonly cited reasons when employees quit their jobs boil down to “not feeling appreciated.” This is far more common than low wages, or scheduling conflicts. People want to feel like they matter. When employees feel like they are being treated well, they are more motivated. Your staff, in turn, becomes more engaged, knowing that they are needed in their jobs.
One of the easiest ways to help prevent turnover is to recognize and reward your employees for a job well done. Incentivize showing up on time, by rewarding those with perfect attendance. This could potentially make your chronically late employee turn his habits around, rather than simply sending him on his way. Reward those willing to undergo extra training in skills they are lacking, rather than allowing them to feel pressured to move on to new opportunities.
While cash bonuses are nice, it is a bit unreasonable to use them as an ongoing coaching tool, or as a way to reduce employee turnover. A great alternative is a structured employee recognition program (see www.employeerewardsprograms.com for an example). Receiving a reward from your boss for a job well done, is a lot more memorable and motivating than a stern lecture for an error made. While there is still a time and a place for reprimanding, remember the old saying about vinegar and honey; when it comes to keeping your employees motivated, positive praise for a job well done works infinitely better than negative conversations about a job done poorly. Good impressions last far longer than bad ones.
After implementing a rewards program with your company, you are sure to see an increase in employee satisfaction, productivity and engagement. Mediocre employees can grow into stars. Employees that previously felt unattached to the company can be encouraged to develop a sense of pride and reignited commitment… While there are a number of ways to help prevent high company turnover, creating an employee reward program is one of the easiest, most effective ways to keep your employees satisfied and motivated.