4 Easy Ways to Reduce Employee Turnover

6 min read

When it comes to your employee turnover rate, numbers speak volumes.

If your most valuable employees are departing quicker than birds flying south for the winter, you need to get to the root of the problem. It can cost thousands to hire new employees, even with useful recruitment management tools

Whether it’s conflict in the workplace, an underdeveloped hiring process or unfair pay, a high turnover rate negatively impacts your business in more ways than one.

From low workplace morale and employee engagement to high replacement costs and decreased revenue, the long-term consequences are real.

According to Gallup, it’s generally estimated “that replacing an employee costs a business one-half to five times that employee’s annual salary.”

For the well-being of your company and your employees, here are four ways you can reduce your turnover rate:

1. Understand the Root Cause(s) and Take Action to Solve Them.

Why do your employees quit?

According to a Gallup study, at least 75% of the reasons for voluntary turnover are linked to managers.

As much as pay and benefits plays a vital role, they’re only secondary.

The Gallup study revealed that the most common answer respondents gave for why they were moving on are as follows:

  • 31.5% for career advancement or promotional opportunities

  • 20.2% because they lacked job fit

  • 22.4% because of pay and benefits

  • 16.5% because of poor management or the general work environment. 

The stats reveal how the “why” goes beyond money.

After all, loyalty can’t be bought.

As a manager, it’s your job to get to the root of the problem and take action to solve it.

One way is by having your HR team conduct exit interviews.

Conducting a structured exit interview with a departing employee will help you understand why your employees are leaving in the first place and what actions you can take to improve your retention rate and company culture. 

They’re also a great way to gain valuable and actionable insights that will help you attract and retain top talent.

If you’d like to go into “prevention” mode, you can turn to your current employees for answers.

Adapting an employee feedback loop is another effective method that allows your company to see problems before they arise and problem-solve your way out of them.

In a nutshell, an employee feedback loop “is a reciprocal form of improving communication in the workplace, in which both parties must be fully engaged.”

Most companies provide semi-annual and annual performance reviews for employees which wind up feeling like a one way street in communication.

Employees only get their word in after they’ve been evaluated and twice a year isn’t enough to make REAL changes.

An employee feedback loop keeps the communication alive by allowing employees to address their needs or concerns on a daily basis.

By being an active listener and encouraging your employees to express what’s on their minds, you’ll find it easier to identify the issues that need to be addressed.

2. Recognize Your Employees’ Efforts.

Words go a long way in making or breaking someone’s day.

Sometimes, a compliment towards an employee is all it takes to make their day brighter.

Whatever value your employees bring, they need to be recognized for their efforts from time to time.

Let’s get one thing clear though: employee recognition doesn’t need to happen on a daily basis.

It has to happen often enough that an employee doesn’t feel unacknowledged or taken for granted.

Acknowledging the work they put in (especially during these difficult times) can foster a positive rapport.

The next time an employee puts in more hours or exceeds expectations on a project, send a few kind words their way.

You might be surprised just how receptive they are in receiving the compliment.

3. Level up their Skillset by Offering Training.

With a shocking 31.5% of employees leaving their jobs for career advancement or promotional opportunities, it’s a no brainer that skill advancement plays an essential role in retaining employees.

When an employee doesn’t feel challenged enough in their role, boredom comes knocking at their door.

To kick boredom out, you can offer your employee(s) the opportunity to learn a new skill within their field.

Whether it’s levelling up their tech skill set with online courses via Linkedin Learning (which with a library card is free) or offering 1 on 1 training with an employee in a more senior role, broadening an employee’s skill set works wonders in boosting their motivation and sense of purpose in their role.

Additionally, levelling up their skill set offers new opportunities to train junior level employees within their roles.

4. Improve the Hiring Process.

“Hope for the best, expect the worst”, right?


As much as you can’t control the outcome of your hires, you can prevent the worst from happening by being prepared.

To reduce your turnover rate, go back to the starting point: your hiring process.

When it comes to skillset, words are cheap and we all know “showing” vs “telling” goes a long way in discovering a candidate’s value.

Having a candidate bring a portfolio of their work or following up on a requested reference works wonders to validate their skill set.

Yet establishing expected tasks and skillset required for a role is only half the battle.

Other factors like motivation, coachability and emotional intelligence are often overlooked.

One good way to attract the right fit is by making your interviews a two-way conversation.

Offering prospective employees the opportunity to interview you will provide insight into what they value, shine a light on their personality as well as allow you to be openly honest about what they can expect.

Additionally, focusing on strengthening your “employer brand” can work wonders in attracting more of the right fit.

According to a Glassdoor survey, 69 percent of respondents are likely to apply for a job if the employer:

“Actively manages its brand by responding to reviews, updating the company’s profile and sharing updates on the company’s culture and work environment.”

In other words: Put your company out there for active and even passive candidates to find!

The hiring process can be time-consuming, but it doesn’t have to be difficult.


Reducing employee turnover isn’t just about improving numbers. 

It involves understanding the “why” behind employee’s leaving and finding actionable ways to foster a healthy and productive work environment. 

After all, employee engagement is the cornerstone of retaining employees and comes in various forms.

Whether it be through active listening, offering additional training, or conducting exit interviews, a little effort goes a long way.

The important part is caring enough to understand the core reason(s) behind your turnover rate and finding ways to improve on it.

Or better yet: Be part of the solution not the problem.

Need help with recruiting, scheduling and managing your workforce? Start a free trial of Evolia today.

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