Reducing employee turnover can significantly impact a company’s bottom line, with the costs of recruitment, training and lost productivity quickly adding up. A study by the Society for Human Resource Management (SHRM) estimates the average cost of turnover to be between six and nine months of an employee’s salary. For a $60,000 per year employee, that’s $30,000 to $45,000 in turnover-related expenses.
Reducing employee turnover is critical to maintaining a healthy, thriving workplace. While some turnover is inevitable, there are strategic measures companies can take to foster employee retention and reduce turnover rates. Here are some effective strategies to consider:
1. Prioritize Onboarding and Training
The onboarding process sets the tone for an employee’s experience with the company. A poor or rushed onboarding can lead to disengagement and early exits. It’s essential to provide comprehensive onboarding that immerses new hires into the company culture, clarifies their roles and offers hands-on training.
Suna Solutions recommends investing in continuous training programs as well. Ongoing professional development not only enhances employee skills but also demonstrates that the company is invested in their growth. This investment can lead to a stronger sense of belonging and loyalty.
2. Foster a Positive Work Environment
A toxic workplace is one of the leading causes of high turnover. Employees are more likely to stay with a company if they feel valued and respected. Ensuring open communication, promoting inclusivity and addressing any conflicts quickly and fairly can improve workplace morale.
At Suna Solutions, we emphasize creating an environment where employees feel comfortable giving feedback and believe their voices are heard. Regular check-ins with team members allow for transparent communication and give employees a chance to express concerns before they lead to disengagement or resignation.
3. Offer Competitive Compensation and Benefits
While salary is not the only factor in employee satisfaction, offering competitive pay is critical to retention. If employees feel underpaid, they may seek opportunities elsewhere. A study by Glassdoor found that 45% of employees who left their jobs cited salary as a primary reason.
It’s equally important to offer comprehensive benefits that go beyond healthcare. Employees today value work-life balance, flexibility and mental health support. Suna advises companies to regularly evaluate their compensation packages to ensure they’re meeting employee needs and staying competitive within their industry.
4. Provide Career Growth Opportunities
Employees want to know that they have a future within the company. If they feel stagnant, they are more likely to seek growth opportunities elsewhere. Offering clear career development pathways and opportunities for promotion keeps employees motivated and engaged.
Suna Solutions encourages businesses to create individual development plans (IDPs) for employees. This formalizes career growth discussions, giving employees clear goals and timelines for achieving their ambitions within the company. Providing mentorship programs and tuition reimbursement for further education can also boost retention.
5. Recognize and Reward Employees
Recognition is a powerful tool in reducing turnover. Employees who feel appreciated are more likely to stay loyal to the company. This can be as simple as regular verbal recognition for a job well done or more formal, such as employee of the month programs or performance-based bonuses.
At Suna, we work with our clients to build recognition programs that align with company values and culture. Regularly celebrating employee achievements fosters a positive atmosphere and motivates employees to continue performing at a high level.
6. Focus on Work-Life Balance
Today’s employees place a high value on work-life balance. Offering flexibility in the form of remote work options, flexible schedules, or additional paid time off can go a long way in retaining employees. Burnout is a major contributor to turnover, and companies that actively prevent it by supporting work-life balance are more likely to see long-term retention.
Suna Solutions has seen firsthand how flexible work policies can improve employee satisfaction. We help businesses implement flexible scheduling and remote work strategies that keep employees engaged and productive, while reducing burnout and turnover.
Building a Retention-First Strategy
Reducing employee turnover requires a comprehensive, people-first approach. From competitive compensation and career growth opportunities to a supportive work environment, companies that invest in their employees are more likely to retain top talent. Suna partners with businesses to develop tailored staffing and retention strategies that align with their goals and foster long-term employee engagement.
According to a study by Gallup, companies with highly engaged employees experience 59% less turnover than those with disengaged workers .
Ready to reduce turnover and boost employee satisfaction? Contact Suna Solutions to learn how our customized workforce solutions can align with your business needs and help you retain top talent.