Reducing turnover is a balance between finding the right talent and retaining that talent.
According to the Center for Nonprofit Management’s (CNM) Southern and Central Compensation and Benefits Report, 36% of participants of the report have trouble retaining their top performers due to their inability to offer a competitive salary and benefits package.
Reducing turnover is beneficial to both the employer and the employee. Turnover costs are approximately 100-300% of the base salary of the replaced employee. The higher the employee’s annual salary is, the higher the cost of the turnover.
What can you do to improve retention of your employees?
1. Recruiting Process
a. The recruiting team should coordinate with the hiring manager to design an accurate job posting to reflect the behaviors, skills, abilities and attributes of the perfect fit for your open position.
b. Ensure that the hiring team communicates with the job applicant during the recruiting process and presents realistic expectations regarding the demands and expectations of the position.
2. Offer Extensive Manager Training
a. Managers are the number one reason employees leave. Ensure that your managers know how to correctly coach employees, empower their employees, and recognize them.
3. Professional Development
a. Offer coaching, mentorship and job shadowing so employees can continually grow and develop.
b. Sponsor employees’ professional affiliations
4. Tuition Reimbursement
a. Offer programs that support for continuing education.
5. Benefits & Compensation
a. Offer a competitive benefits and compensation package.
b. Review market data to determine competitive employee pay.
6. Promote Internally
a. Reward high performing employees with promotions. Consistently hiring external talent encourages employees to move to another company to get promoted. Offering career advancement significantly reduces turnover for current employees.