How to reduce employee turnover ?

One of the most common challenges small and medium businesses face is high employee turnover. In many cases, employees leaving business creates such a bad experience for business owners that they conclude it is not worth bringing an outsider into their business and that they are better off doing everything themselves. Such a decision creates more challenges like work-life balance for owners and inefficiencies for the business. Hence, as a result, the business never reaches its potential. 

It is also important to acknowledge that most employees will never stay forever and will eventually move on. Large corporations with billions of dollars of revenue can also not retain everyone, despite being able to offer fancy stuff that a small business cannot afford to do ever. 

No single "ideal" employee turnover rate applies universally to all organisations in Australia, as turnover rates can vary significantly by industry, company size, and other factors. However, lower employee turnover rates are generally desirable as they can help organisations reduce the costs associated with recruiting, training, and onboarding new employees and can also help improve productivity and morale by fostering a stable and engaged workforce.

According to the Australian Human Resources Institute (AHRI), Australia's average voluntary employee turnover rate is around 15%. However, this can vary widely depending on the industry and other factors. For example, some industries, such as hospitality and retail, may have higher turnover rates due to seasonal fluctuations. In comparison, other sectors, such as healthcare and education, may have lower turnover rates due to the nature of the work and the level of training and qualifications required. So it is clear that you cannot hold everyone back, but what can you do so an employee sticks with you long enough to deliver value to the business? 

Reducing employee turnover requires a combination of strategies that focus on creating a positive work environment, providing career growth opportunities, and ensuring that employees feel valued and supported. Here are some strategies that can help reduce employee turnover:

By implementing these strategies, organisations can create a positive work environment that attracts and retains top talent, reduces turnover, and improves overall employee satisfaction and productivity.

Book a complimentary coaching session with Atif  and walk away a simple action plan. Our free "Business Health Assessment" will also help you discover the areas you need to focus on to build a sustainable and self-propelled business.