How to Reduce Staff Turn Over

Staff turnover is a major problem for companies. Staff turnover makes for an unstable work environment, overtime for your remaining employees and economic strife for the company. A study has shown that an erroneous choice in employee selection can cost a company anywhere from 20 to 200 percent of a year’s salary. This economic loss comes from many causes including employee turnover. Therefore, steps need to be taken in a company in order to reduce staff turn over. Employee turnover also comes as a result of the changing culture in employment and the baby boomers who are retiring from companies.

Pre hiring assessments are normally very useful in cases of staff turn over rates. These assessments help to separate the applicants who truly want and are qualified for the position. These tests are useful to both those hiring and applying. Human resources departments can avoid hiring applicants out of desperation by using temps in the meantime. You should have all the necessary information from an applicant such as a list of past and current employers, references, birth date, full name, address, phone number and social security number. You can run a background check to make sure that this person does not have any criminal activity on his or her record and speak with a reference or two. This will avoid situations of future termination or unreliability on the applicant’s part.

Skill tests are also valuable to reduce staff turn over. These skill tests separate those who can do the job from those who cannot. Once you have found the perfect employee you should make sure that you do not lose him or her. Therefore, with competitive pay you are offering this employee a reason to join or remain with your company for years to come. Remember though that employees want job security, a healthy stimulating environment as well as a competitive salary.

The work atmosphere also has a lot to do with staff turnovers and personal reasons for leaving. Workers need positive reinforcement while working. They do not want to be in an atmosphere where they feel under appreciated. A simple “keep up the good work” or “what a fantastic idea” can be the simple yet important factors for keeping your employees on board with you.

Whenever you sense a problem in your company, you should be aware of the consequences of staff turnover. As long as you keep a good business ethic coupled with a nurturing work environment, the staff turn over rate will be reduced. Many times, it is not the employee’s fault that he or she wants to terminate his or her job. It is actually the lack of involvement from the managing team to evaluate the employees work situation.