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The Best Way to Reduce Employee Turnover

If one of the staff in your office resigns and someone else replaces his position, that’s employee turnover. This is very common and can be beneficial if staff who replace those people work better. But if the employee turnover is too high, your company will be at a disadvantage. What is the best way to control employee turnover? Read along to know more about it.

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Definition of Employee Turnover

According to Wikipedia, employee turnover is the act of replacing existing employees in a company with new ones. There are two main reasons that cause your employees to leave the company. There are people who leave your company because they get a better job, receive an offer with a better salary, focus on their studies, and many other reasons. But there are also those who had to leave their job because the company let them go. However, you rarely use this aspect as a benchmark for employee turnover calculations. The high number of employee turnover who leave their job voluntarily is the one you have to consider because we associate it with internal company management.

The Impact of High Level of Turnover

If there are a lot of employees coming and going from your company, it is a sign that something is wrong at your company management level. Maybe the salary you offer is too low, maybe it’s the lack of benefits received by employees, or maybe your work environment is unhealthy. The impact of high turnover rates can affect many aspects of your company. Here are some of them:

It’s costly

Bringing in new employees is not a trivial matter and also costly. There are costs that your company must spend in the hiring process. Paying vendors for job postings, interviewing, and training new employees is indeed costly. Not to mention if you have to incur severance pay for each employee that resigned.

Lower productivity

Sometime, it takes a while to find a replacement for resigned employees. There are companies that take around a month to find new employees; there are other that takes longer. As a result, the productivity of other employees also decreased because the work of the resigned employee is now theirs.

Declining profits

Lower productivity also affects company profits. A lot of unfinished work, declining sales, and it affected the profits in the end.

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How to Reduce Employee Turnover

There is no sure way to maintain your employee loyalty. However, if you try to understand what your employees want from you, then you are heading in the right direction. Here are a few steps you can try:

The right man on the right job


What we mean here is not just looking for employees with adequate skills. You also need to figure out if the employee fits into your company’s culture, can he work in a team or other non-skill requirements that you need to know. You can build skills or train your employee, but personality is not.

Competitive salary and benefits

Although salaries remain the main factor when looking for a job, the benefits provided for employees are also important. Insurance benefits, pensions and unique benefits such as being able to work from home and flexible working hours are effective to keep your employees loyal to your company.

Effective training

Have you ever found your employees don’t know what to do with their job? It may be because you didn’t train them well. That is why it’s important to carry out effective training for your employee. Use competencies and training software to help you arrange the best training.

Balanced work hours

Give your employees the opportunity to balance their work and personal life. Don’t push them to extend their work hours, or not allowing your worker to take their time off. If you have to extend the work hour, make sure you pay their overtime fees. Use HRM software to help you manage your employee shifts and work hours.

Remove toxic employees

There is no point in you giving a high salary, abundant benefits, while one of your employees “poison” the other to resign from your company. You musn’t allow this. It’s better to lose one toxic employee, even though his/her performance is good, rather than losing ten other employees.


The incoming and outgoing of employees in your company are bound to happen from time to time. However, if it happens too often, then there are a lot of negative impacts for your company. Therefore, employee turnover must be kept to a minimum.

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