How to retain top talent and reduce staff turnover

How to retain top talent and reduce staff turnover

Up until recently, job hopping was a red flag for employers. Candidates would be put on the spot in interviews and the general feeling was having many jobs in a short space of time would be a black mark against your name.

These days, however, this attitude has radically shifted. Not only is it more accepted, but it's expected. The average worker stays at their job for four years, whereas 91% of millennials expect to stay for two - three. Now, we are seeing millennials moving into management roles, even though employers are well aware of their tendency to move on within a short amount of time.

So, the perception of job-hopping has changed for the better, this is great for employees, but not so great for employers. Research by the Australian government in 2022 revealed that employee turnover in their country costs an estimated A$3.8 billion. An extra A$385 million is lost in avoidable recruitment costs. Faced with those sobering statistics and dealing with the upheaval caused by COVID-19, it makes sense for organisations to home in on employee retention as a key strategy for their business, especially in the current climate.

We break down how to minimise employee turnover plus the reasons behind it in today's 'new normal'.

Prioritise your recruitment strategy

Retaining employees begins with hiring the right candidates. To put you on the right track towards reducing turnover, you first need to prioritise your recruitment strategy. Creating accurate job descriptions which effectively demonstrate the company culture, as well as attract the best-qualified candidates, is key. If you need help sourcing talent then reach out to us today. It’s also important to pay attention to new hires, is there a pattern of people leaving early on? Are you hearing negative feedback during exit interviews?

Organisations that prioritise onboarding retain 50% more new hires than those that don’t. Once the right talent has been hired, ensure their onboarding experience is a positive one. This goes beyond providing the equipment they need to do their job. Every new hire should get the proper training, have a clear idea of the expectations for the role, and know who to turn to if they need help. This sounds obvious, but many companies make the mistake of doing the bare minimum in onboarding, increasing the risk of losing great employees.

Ensure employee engagement

A lack of engagement is one of the main reasons why people leave their jobs. A Dale Carnegie Training Study found that 69% of disengaged employees would leave their job for a pay increase of just 5%. Only 26% of engaged employees would leave their job for the same increase in pay. This clearly illustrates that the financial side has less to do with employee turnover than keeping people satisfied in their roles.

But what leads to employee disengagement? The same study revealed that 80% of workers who are unhappy with their direct supervisor are not engaged. Conversely, a Gallup report showed that employees with managers that communicate daily are highly engaged. Clearly, good management equals higher employee engagement. But it’s not just about more communication; the way managers communicate is key here. Take the time to get to know your team, and demonstrate you are invested in them. Employees are far more likely to stay in a role where they feel valued as individuals

Enhance communication

Managers should be creating a work environment where employees feel comfortable enough to speak up, voice new ideas, and share with their co-workers. In order to achieve this, it’s crucial to be aware of what’s going on in your team.

Each individual faces unique challenges and to really understand your employees, active listening is essential. Kathryn Robertson, a Senior Lecturer at the University of Melbourne, states that “Active listening is characterised more by what is not done, than what is done”. This is because effective active listening means breaking bad habits and avoiding go-to responses. When listening to employees, maintain eye contact, don’t interrupt, and focus on the speaker’s body language and tone of voice. This way, you will really understand what the issues are and how to address them going forward.

A great way to keep up to date with how employees feel is to have regular catch-up, both as a team and in one-on-one meetings. Even if everyone is working remotely, you can still find out how people are coping. To give employees room to provide feedback anonymously, use a feedback platform, or an online survey. These simple steps show that not only do you care about your employees, but that their voice will be heard.

Focus on development and training

Tying in with the communication aspect, providing a clear path for employees’ careers is key to a loyal, engaged workforce. Incorporate discussions about employee goals and aspirations into performance reviews and regular meetings. These conversations will help you establish if employee strengths are being fully utilised and if there are any skills gaps which need to be addressed. By making these discussions an integral part of the company culture, employees see that their contribution matters, making them more likely to stay with the organisation. A Gallup study found that 67% of employees who feel their manager focuses on strengths are engaged, so these discussions shouldn’t be about pointing out weaknesses.

A LinkedIn report showed that 94% of employees would stay longer at a company if it invested in their professional development. If employees are leaving your organisation due to a lack of learning opportunities, this is a major problem. Why? Because people who want to learn more and improve their skills are curious, adaptable, and creative, and these are the employees who will be an asset to your organisation. Learn from employee feedback what type of learning is preferred and create a solid learning and development program based on that. This needs to be consistent and flexible to adapt to the ever-changing world of work, as well as shifting employee demands.

For employers, making employee retention a priority is crucial for success going forwards. By identifying the ‘why’, you can take effective action to make sure you retain the best talent to take your organisation into the future.

Where to now?

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