In July 2019, 3.6 million people quit their jobs according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. That’s the highest number of individuals who voluntarily left their workplace in a given month since the BLS started tracking the metric in December 2000.
Every business experiences employee turnover—there’s no way to avoid it. But in today’s tight labor market, employers need to put their best foot forward in order to attract desirable candidates and keep their top performers. Check with your clients to see if they’re using the following tactics to help reduce turnover at their organization.
1. Hire Good, Quality People
Sounds like a no-brainer, right? To help ensure you’re getting quality candidates, implement an employee referral program in which your current employees are rewarded in some way for recommending applicants. Employee referral programs can reduce the time it takes to fill open positions and yield higher quality candidates who stay longer. LinkedIn’s recent Global Talent Study showed that 48% of businesses say their high-quality candidates come from employee referrals.
2. Offer Competitive Pay
Labor costs are by far the biggest expense for most companies, but it’s important not to overspend in order to attract new talent. Research the average pay rate offered by your competitors for similar jobs—a task made easier thanks to online sites such as Glassdoor—and take location into consideration before establishing a baseline salary. As your budget allows, try bumping up that baseline a bit to make the position even more attractive.
It’s equally as important not to underspend when retaining your top performers. Your workforce is your top asset and investing in their wellbeing should be a top priority. A competitive salary (or bonus!) can incentivize your employees to do their best while helping with morale and productivity.
3. Get The Right Mix of Benefits
The absence of benefits or the wrong benefits can drive up turnover rates. Employers need to pay particular attention to ensure they’re offering the right mix of benefits for a multigenerational workforce. Take it a step further than the traditional medical and dental options. For instance, would you consider your workplace a “wellness” company? Do you offer financial wellbeing seminars? Is telecommuting or working remotely an option as needed? Each generation prioritizes different benefits, so offering a good mix is a sure-fire way to attract talent.
Start reducing turnover, today.
To see how your business can derive the necessary information to help reduce turnover, check out our latest report, The HR Playbook: 10 Metrics that Prove the Value of HR.