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  • Evan Wirig

Tips To Reduce Employee Turnover

In an ideal world, businesses would run effectively, employees would be satisfied with their positions, and employee turnover would not exist. However, because we don’t live in that ideal world, turnover is a metric that business leaders must closely monitor.

Due to things like retirements, terminations, layoffs, and so on, a company’s turnover rate can affect how that business will perform. This leads many to wonder what a healthy turnover rate would be.

Admittedly, this varies based on the industry, but overall, a healthy turnover rate would be somewhere between 10% and 20%. Usually, any higher than that would indicate a deeper issue within the company. And as any business owner is well aware, the cost of onboarding a new employee can get expensive, sometimes up to twice the new hire’s annual salary.

Why does this happen? In most instances of voluntary turnover, the issues usually stem from money and benefits. Sometimes it’s management issues. Sometimes it’s to progress their own careers or to find a company that offers a better work and life balance.

Admittedly, this can all stem from a company’s culture. If those issues are constantly ignored, especially if an employee feels they have been consistently overlooked for advancement opportunities, it can take a toll on the employee and the company.

This can be a harrowing statistic just to look at on the surface. The question then becomes, “what should be done?” After looking at different ways to reduce employee turnover, we’ve found a few common threads that would benefit any business owner, recruiter, and hiring manager.

Hire The Right Talent

The path to employee turnover typically begins during the interview process. Recruiters and hiring managers need to be explicitly clear about what the job requires in the job posting and be entirely upfront about what is expected once a candidate is hired.

Find the person with the best skills and the person whose values closely align with the company’s. Ask behavioral interview questions during the interview as well.

Be upfront. Most employees will turn in their notice when they feel like they have been lied to about what the company culture is like or what the job actually entails, especially during onboarding.

If the job posting is offered as a fully remote position, ensure it is actually a fully remote position. If office time is required in these circumstances, be crystal clear about how much time would be expected. Is it once a quarter? Once a month? Is it a hybrid position where the employee is expected to be in the office at least twice a week? Be entirely upfront in the job posting and interview.

Keep Employee Salaries Competitive With The Market Rate

This point may be a bit hard to hear with many business owners, but this has been shown to reduce employee turnover. As mentioned above, pay and benefits are typically the top reasons why an employee will voluntarily leave a company for greener pastures.

When a new employee is hired, offer a competitive salary and benefits package that either matches or exceeds the current market rate. If an employee has been with the company for a while without a significant raise, as opposed to a yearly arbitrary percentage, give them a pay increase to match the current market.

When it comes to in-demand skills, companies should also expect to pay more to compensate for those skills and the turnaround time to ensure the projects are done correctly and efficiently.

Another competitive edge companies can use to reduce employee turnover is to monitor and reward top performers. It should go without saying that people who feel their efforts are appreciated are more likely to stick around.

Place A Priority On Work-Life Balance

Burnout is a real thing. And it’s something that many employees deal with. Sometimes it leads to employees looking elsewhere for employment, negatively affecting employee turnover.

While it’s understandable to require the occasional weekend or work past certain hours to complete a project, it shouldn’t be an expectation for everyone. Over the last few years, more and more people have been looking for ways to reduce their commute, looking for more opportunities to work from home. If possible, find ways to encourage more remote work.

If there is a worry about employee engagement while working from home, that might be indicative of a deeper issue. Typically, someone who is not engaged at home is not likely to be engaged at the office. A lack of engagement typically suggests that a need is not being met. While free food, company trips, and similar things may be fun, they don’t really affect engagement that much.

If engagement is a concern, as it should be since it is an indicator of employee turnover, look at the relationship between the employee and their manager. And that may require looking into that manager’s style.

Effectively Define Company Culture

When it comes to how much an employee enjoys their job, culture plays a large role. How well each employee aligns with the company’s beliefs and attitudes can greatly affect employee turnover.

Identify what the company’s culture is, not what it wants to be. From there, business owners can make the adjustments needed to create a place employees want to work for.

Human Resources To Reduce Employee Turnover

If you are looking for a professional in Human Resources that can help provide a concise plan to reduce employee turnover for your company, contact Executive Compass, an executive-level HR specialty firm strategically d

esigned to navigate business in today’s complicated and ever-changing working world. From recruitment and onboarding to employee performance, benefits, organizational development, and employee relations, there’s no step in the business life cycle that Executive Compass is not equipped to handle. Contact Executive Compass by visiting, calling 760-504-6352, or emailing

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