5 Tips for Minimizing Employee Turnover

5 Tips for Minimizing Employee Turnover

No matter what vertical you're in, high turnover rates are a problem. As the economy continues to regain its footing and improve, turnover becomes a bigger problem. And the logic behind that is pretty simple. The more jobs that are available, the more people are looking to change jobs.

No matter what vertical you’re in, high employee turnover rates are a problem. This problem is especially pronounced in the retail and service industries. As the economy continues to regain its footing and improve, turnover becomes a bigger problem. And the logic behind that is pretty simple. The more jobs that are available, the more people are looking to change jobs.

So how do you keep your company’s turnover rate down? Here are five tips that can help.

Improve Your Interview Process

Most experts will tell you that the best way to decrease turnover is to hire the right people. And the best way to do this is to interview very thoroughly. It’s best to include a couple steps in the interview process, and preferably, talks with a number of people within upper management.

It’s important to not only make sure that the person has the skills required for the position but that he or she also fits the mold of your company culture. Don’t be afraid to get a little personal as well. Try to determine whether this person views your company as a transitional job or as something he or she would be interested in doing long-term.

It’s also very important to be completely transparent and upfront when it comes to communicating the tasks that come with this position. New employees do not like being surprised. Finding out after a couple weeks that they are required to perform tasks that they were unaware of at the start of their employment could easily sour their opinion of your company and decrease their desire to work for you long term.

Adding trial periods to the process is also a good idea. See how the potential employee works in a practical setting and give them a trial period of a couple days, weeks, or months (depending on the position) in order to gauge the quality of their work.

And if the employee does end up leaving your company, don’t forget to perform an exit interview as well. You can gain great insight from speaking to them as they exit your company – insight that can help greatly when the time comes to make your next hire.

employee turnover

Provide Better Orientation

The first several days and weeks at a new job are crucial towards determining how the employee perceives your company and his or her role within it. Good employees naturally seek out good companies, which is why you need to make their transition into your company as inviting, cordial, and painless as possible.

The first step towards achieving this is providing a well-rounded and friendly orientation experience. Demonstrate to your new hires that their personal success is just as important as the success of your business.

It’s also a good idea to bring the employee into his or her position slowly. Instead of dumping a huge number of tasks on them immediately, let them ease into the position. This gives them enough time to learn about your company and get acquainted with the rest of the staff.

If the employee needs training, provide it. Get them comfortable from the start. Let them know that they are allowed to ask questions and request help whenever they need it.

This will give them the confidence they need to perform at a high level once the training wheels come off.

And don’t be a stranger! Once they’ve become acclimated to the position, keep checking in with them on a regular basis to see how they are doing and whether they need anything. Providing personal attention makes employees feel needed and appreciated, and that is one of the biggest keys to retaining them.

Offer Employee Benefits

Money is always tight, but offering benefits and competitive wages have been shown to be a surefire way to decrease turnover.

Most people will leave a job because they have found a job that pays better. It’s as simple as that. Studies have shown that giving regular raises to decrease your turnover rate will actually cost you less than the money you lose when an employee leaves your company.

Every time you hire someone new, there is a learning curve involved during which productivity will surely decrease. Retaining your staff and keeping your team stable will decrease the need for these learning periods and keep your productivity levels high.

Benefits like free lunch and beverages are always appreciated by staff as well. The costs of these types of benefits are also much lower than the money you lose as a result of turnover.

Other benefits that can go a long way include providing insurance and offering bonuses and rewards for outstanding performances.

Promote Worker Autonomy

Another big part of decrease turnover is improving staff morale. One of the best ways to do that is to give your team an added level of autonomy when it comes to scheduling their shifts and determining when they work.

A workforce management platform like Humanity could help you with this. Let your employees coordinate among themselves when they need to trade or drop shifts. Of course, you as the manager will have to confirm all schedule changes, but allowing employees to be involved in the process lets them know that they have a say and that they are respected.

It’s also a good idea to ask workers to set their own availability so that their schedules are being planned according to when they can work, instead of when you want them to work.

Many employees might have children they need to take care of or classes that they need to attend, so asking them about their personal schedules in advance can be helpful to both you and them.

And once you implement this process, you’ll more than likely find out that their availability is very similar to when you expect them to be available. The difference is that by using this approach, you are scheduling them collaboratively and including them in the process, which means a lot and won’t be taken for granted.

employee turnover rate

Communicate Better

Open communication is another huge part of maintaining high morale throughout your staff. Always be open, responsive and supportive of your team.

A good idea is to set up one-on-one sessions during which employees can come in and openly speak to you about issues they might have. Letting employees know that they are allowed to speak their minds and that they should not be afraid to make recommendations is really important.

It is most important to create a company culture in which the process of providing feedback is completely comfortable. Establishing open communication between management and staff is crucial in keeping employees happy and making them want to stay with you.


Keeping your employees happy is the best and most effective way to retain them.  When an employee feels comfortable and satisfied with where they are at professionally, this decreases the chance that they will be picking up the want ads or searching job sites for something better every day.

Reducing turnover not only saves you money, it keeps your company functioning at a high level and improves cooperation and productivity through familiarity and continuity in the long run.

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