8 Ways to Reduce Employee Churn

It’s a problem that everyone in HR knows too well: A great team member handing in their resignation, leaving a gap in skills, company expertise, and culture.

But when the resignation letters start piling up, employee churn becomes less a normal part of the working world and more a worrying sign about your company culture. 

If you’re looking to reduce employee churn in your organization, here’s the guide for you! Let’s break down eight strategic ways to keep your best employees part of your dream team.

8 Ways to Reduce Employee Churn

Employee churn, the rate at which employees leave a company, has significant implications for business continuity, productivity, and morale. High turnover rates not only disrupt workflow but also incur costs associated with recruitment, onboarding, and training. In today’s competitive job market, retaining top talent is more critical than ever. In this article, we will explore eight actionable ways to reduce employee churn.

1. Concentrate on Company Culture

A strong company culture is essential for employee well-being and retention. Encourage open communication, recognize employee contributions, and promote a culture of respect and inclusivity.

A supportive work environment can help alleviate stress and improve overall well-being, reducing the likelihood of employees seeking opportunities elsewhere. There is nearly 50% more likelihood of turnover when company culture is poor.

Your efforts to build a strong company culture will pay off: companies with good corporate culture report four times higher revenues. And along the way, you’ll find that company culture boosts not just retention, but hiring too: 56% of employees say company culture is more important than salary.

Want to learn more about boosting your company culture? Check out our complete guide.

2. Provide Opportunities for Growth and Development

Investing in employee growth and development not only enhances skills but also increases job satisfaction and loyalty. Employee churn often occurs when employees feel like they’ve reached the peak of what they can achieve at their current job, even if they like the company they work for. Instead, consider ways you can continue to offer your employees new challenges and growth opportunities.

Employee churn often occurs when employees feel like they’ve reached the peak of what they can achieve at their current job, even if they like the company they work for.

Provide training programs, mentorship opportunities, and career advancement pathways to help employees reach their full potential within the organization. Highlight these growth opportunities in job postings and company communications. The results will surprise you: companies that offer employee development opportunities see a 34% higher retention rate and 15% higher employee engagement.

3. Offer Competitive Compensation and Benefits

Obviously, salary is important, and you’ll want to make sure that your employees are competitively compensated. But don’t worry that salary is the be-all-end-all, if your company doesn’t have the financial resources of its competitors; and similarly, don’t rely on salary to keep your best employees.

New research suggests that a range of workplace elements might have more effect over retention than salary, including company culture, work-life balance, and flexible work options like remote work.  

To promote and execute these ideas well, turn to your benefit package and consider employee mental health support. Companies that offer a mental health support benefit see 60% less turnover.

For a much smaller investment than high salaries, you could see a five times return on your investment in productivity, performance, and, of course, reducing employee churn.

Want to see how mental health support changes the game at your company?

Let’s Talk

4. Promote Work-Life Balance

Work-life balance is not just a lifestyle that appeals to many employees; it’s crucial for avoiding burnout, one of the leading causes for employee churn. Encourage work-life balance by offering flexible work arrangements, remote work options, and generous paid time off policies.

Recognize the importance of downtime and encourage employees to prioritize self-care and leisure activities outside of work, as well as healthy work hours. That means that your company needs a culture where setting boundaries is not just accepted but encouraged.

Ensure that your employees know they are not expected to answer emails, messages or calls outside of working hours, and that they can flag when their workload is too heavy.

By recognizing the importance of personal time and allowing employees to maintain a balance between work and life commitments, you’ll create a more sustainable and fulfilling work environment: one that people are less likely to leave.

5. Implement Employee Recognition Programs

Recognizing and appreciating employee contributions boosts morale and fosters a sense of belonging. Implement employee recognition programs that celebrate achievements, milestones, and exceptional performance.

Publicly acknowledge employees through awards, shout-outs, and social media posts to reinforce a culture of appreciation and recognition. 

And again, working to make your employees feel valued pays off. A Harvard Business Review study found that employees who reported their managers great at valuing their contributions were 40% more engaged at work. They’re also 40% more likely to stay at their jobs: a great statistic in your search to reduce employee churn.

6. Encourage Regular Feedback and Communication

Establishing channels for open communication between employees and management fosters trust and transparency within the organization. Encourage regular feedback sessions, one-on-one meetings, and anonymous suggestion boxes to provide avenues for employees to voice their concerns and ideas.

By actively listening to employee feedback and addressing issues promptly, you’ll demonstrate your commitment to employee well-being and create a more inclusive and supportive workplace culture.

Encourage regular feedback sessions, one-on-one meetings, and anonymous suggestion boxes…

Building a feedback culture also makes it more likely that you’ll be able to spot potential problems and crises before they occur. Work to measure employee well-being regularly, and you’ll be surprised at how many small interventions you can make before they build to a head… and cause a valuable team member to leave!

7. Promote Health and Wellness Initiatives

Sometimes employees leave a company not because they want to but simply because their health, mental or physical, will not allow them to stay. Burnout is one of the leading causes for employees to leave their roles.

50% of full-time employees have left a role for mental health reasons and the number is significantly higher for Millennials (68%) and Gen Zs (81%). That means that prioritizing employee health and well-being is guaranteed to lead to less employee churn.

You could work together with your team to find ways to prioritize everyone’s health. Maybe your team would enjoy yoga lunchtimes once a week; maybe a gym membership discount will help everyone, or a kitchen stocked full of healthy snacks.

But as you’ve seen, it’s important not to neglect mental health, which is one of the biggest causes of employee churn. Find the professional mental health support your team needs to boost well-being across the company.

8. Lead by Example

Effective leadership plays a critical role in shaping organizational culture and fostering employee well-being. Lead by example by prioritizing your own well-being, demonstrating empathy and understanding, and promoting a healthy work-life balance. Encourage managers to check in regularly with their team members, provide support and guidance, and lead with compassion and integrity.

By modeling positive leadership behaviors, organizations set the tone for a supportive and mentally healthy workplace culture that values its employees’ well-being.

76% of employees with highly empathetic senior leaders were found to be often or always engaged at work.

And once again, empathetic leaders will reap the rewards of their practice. 61% of employees with highly empathetic senior leaders were reported to be innovative at work. 76% of employees with highly empathetic senior leaders were found to be often or always engaged at work. 86% of employees with highly empathetic senior leaders had better success at balancing personal and professional obligations.

Of course, employees with empathetic leaders are more likely to stick around as a result, taking another major step toward reducing employee churn.

For more advice on leading by example, check out our case study for empowering leadership.

One solution to solve them all

All eight of these strategies will help you reduce employee churn. But you might have noticed that employee mental health support assists and boosts each of the eight individual strategies to build a happier, healthier workforce — one that your employees won’t want to leave.

To see employee churn dramatically reduced, reach out to nilo.health today. Let’s chat!

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