10 Simple Tips To Reduce Employee Turnover At Work
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10 Simple Tips To Reduce Employee Turnover At Work

Of all the resources managed by an organization, human resources are the most important. The employees working in a company are critical to the organization's growth, development, and prosperity. The productivity of the employees is directly related to the productivity of the organization they work in. 

In order to ensure the steady growth of an organization, it is important to retain valuable talent within the company. When your employees spend more time working for your organization, they tend to grow with it and add value. When you can retain talent, you can establish healthy relationships with your employees, increasing their engagement and productivity

That is why it is so important for organizations to reduce employee turnover. 

What Is Employee Turnover?

In simple words, employee turnover is the rate of employees leaving your organization over a specific period (generally one year). It allows you to quantify the employees leaving your company or a specific department over a set period. 

Employee turnover considers aspects like employee departure, layoffs, retirements, terminations, location transfers, resignations, and even deaths. Organizations calculate the employee turnover rate to ascertain its impact on the overall productivity, customer service, and engagement of the existing employees. 

How To Calculate Employee Turnover?

The process of calculating employee turnover is pretty simple. You need to divide the total number of employees leaving your organization over a specific time (month, quarter, or year) by the average number of employees working within the chosen period of time. Multiplying the answer by 100 would provide you with the rate of employee turnover.

For example, if your organization has 150 employees working over the course of a month and 50 employees leave during the same time, you can calculate the employee turnover rate as follows:

(50/150) x 100 = 33.33 



Here, your rate of employee turnover would be 33.33%. 



Before you calculate employee turnover, it is essential to note that you are not required to consider temporary hires or employees going on temporary leaves in the calculation. Adding these figures to the equation would provide you with an answer you cannot rely on to obtain valuable insights.

Voluntary And Involuntary Employee Turnover

There are two major types of employee turnover – voluntary and involuntary. 

As the name suggests, voluntary turnover is the turnover where an employee willingly leaves the organization. This can result from finding a better job opportunity, workplace conflicts, disengagement, and other reasons that make an employee leave an organization. 

On the other hand, involuntary turnover is the case of employee turnover where an employee has to leave an organization against their will. Here, an employee may be laid off by the company or asked to leave because of lack of productivity, toxic behaviour, and other relevant reasons. 

Major Causes Of Employee Turnover

Some of the major causes of employee turnover include: 

  • Internal promotion

  • Transfer

  • Employee feeling burnt out

  • Career progression

  • Lack of opportunity

  • Toxic work culture

  • Having negative feelings towards the management

  • Lack of productivity

  • Lack of work-life balance

  • Involuntary departure

  • Better job offers from another organization

  • Unforeseen life/family event

Simple Tips To Reduce Turnover At Work

If you are willing to retain the valuable talent within your organization and prevent them from leaving, here are some of the simplest yet most important tips to keep in mind for reducing turnover at work: 

  1. Allocate Roles Based On Skills

    Most employees feel like switching companies because their work is not in sync with their skills and capabilities. Even if an employee joins an organization for reasons other than getting job satisfaction, they are bound to feel disengaged over time if they cannot utilize their skills doing the work assigned to them.

    It is, therefore, always advisable to assign tasks and roles to employees based on the skills they possess. Doing so will help you retain more employees and increase the overall productivity of your organization as the employees would be able to give their best in what they do.

  2. Be An Active Listener

    One of the simplest tips to reduce employee turnover is to be an active listener. Although it seems trivial, actively listening to your employees and responding effectively makes them feel valued. It is always advisable for managers and team leaders to be there for their subordinates and entertain their requests whenever needed.

    Whether your employees are willing to share new ideas or discuss their issues, make sure that you listen to them, understand where they are coming from, and respond effectively to have confidence in the team they work in.

  3. Measure Employee Net Promoter Score (eNPS)

    Employee net promoter score (eNPS) is the measure of employee engagement and loyalty towards an organization. This metric is directly connected to the short-term and medium-term intentions of employees working in an organization. The eNPS is often used to quantify the overall employee satisfaction within an organization.

    When you measure this score regularly, you can ascertain how satisfied and engaged your employees are while working in your company. If the score is high, you can reinforce the practices followed by the management. However, if the score is low, the management can take important decisions and develop remedies to prevent employees from leaving the organization.

  4. Be Clear In Your Job Expectations

    It is always advisable for an organization to be clear and upfront with employees (especially new hires) about the expectations you have for them. Many issues arise out of employees not being clear about their roles and responsibilities. Always be transparent in communicating the job details when an employee is hired and never sugarcoat any aspect of the tasks they are required to perform.

    When your employees know exactly what is expected of them and are clear about their role in the organization, they are likely to be associated with you for a more extended time.

  5. Conduct Exit Interviews

    Like recruitment interviews, an organization needs to conduct exit interviews when an employee decides to quit. Irrespective of the reason behind them leaving, exit interviews help managers to understand the major reasons that may lead to other employees leaving the company. These interviews provide you with the employees' points of view regarding the effectiveness of the management.

    If you assess exit interviews keeping an open mind, you can make necessary changes in the management, ensuring that you retain the talent your company already possesses.

  6. Look For Employees Fitting Your Company Culture

    Along with the skills and capabilities of the candidates, recruitment managers should consider the extent to which a candidate fits the company's culture. If you hire employees who sync with your company culture, it becomes easier for them to adapt to the new work environment and grow with the company. This would also make it easier for managers and team leaders to work with the employees and extract the best outcome from their efforts.

    Read More: How to establish a mental health-focused work culture?

  7. Undertake Effective Two-way Communication

    Never make the mistake of dictating the tasks to be performed by employees and giving them instructions without dialogue with them. To reduce employee turnover, it is always important to undertake effective two-way communication with them. Make sure you ask them about their experience so far, the issues they are facing, their suggestions to improve the management, and their inputs in making important decisions. This would provide your employees with a feeling of inclusiveness, making them stick around for long.

  8. Have A Flexible Schedule

    Gone are the days when employees were comfortable working fixed hours from a dedicated workspace. Over time, employees in all major industries prefer working flexible hours to perform their tasks better. As long as the work is not getting hampered, it is advisable to have a flexible work schedule to provide them with a conducive work environment.

  9. Develop Friendly Relations With Your Employees

    Your employees probably spend a large chunk of their day with you. If you want them to stay associated with your company for a more extended period, it is important to develop friendly relations. This makes them feel comfortable while they work, increasing the free flow of ideas.

  10. Reward Their Achievements

    Finally, it is important to reward your employees for their achievements. Employees always tend to seek validation from the management after working hard on the projects assigned to them. When you appreciate their contribution to your organization, it makes them feel valued, leading to high engagement and productivity.

The Final Word 

These were some of the most simple and important tips to keep in mind for reducing turnover at work. If you focus on retaining your valuable employees, you can build a healthy community and provide new employees with a fulfilling work environment.

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