6 Ways to Reduce Turnover

Kevin Wheeler, the President and Founder of Global Learning Resources, Inc., said it very well in his article recently posted on ERE.net, regarding the retention of employees. "Money won't hold them." Turnover is a reality for employers these days and loyalty has become a thing of the past.

So, how do you keep employees around?

Kevin listed 6 ways to reduce turnover in his article that I thought were just great.

1. Make it easy for people to move around in your organization. Do not limit transfers. Let people try out areas where they have little experience. Encourage cross-fertilization and give people the support and development they need to succeed in the new position. Never tell an employee they are not ready, too junior, not educated enough, or haven't worked at the firm long enough to do whatever it is they want to do. To tell them any of those things is a guarantee that they will leave you soon.
2. Provide lots of free development and training. Encourage employees to get more education by offering to pay for 100% of college tuition or for 100% of a certification program. Pick key employees and offer them the chance to participate in longer-term development programs. Make a big deal out of development and then pay the employee more money when they complete the program. Gen Y, in particular, is attracted to any company that helps them gain more skills.
3. Allow employees to volunteer time outside the organization. For example, Google allows employees to donate time to charities while still being paid. Letting employees participate in community, social and charitable activities not only improve your organization's reputation, but acts as a retention tool.
4. Pay at market rates or more. Don't think that your benefits or loyalty will keep employees happy. Err on the side of generosity when you offer pay increases and never let pay be an excuse for an employee leaving. Pay is never the real reason people leave a firm, but it sure makes a great excuse for employees. Most organizations can't defend themselves on this issue because they don't pay that well.
5. Manage the performance of your managers. Track the turnover of employees for every manager. Managers who have any significant turnover need to be educated and mentored and, if things don't improve, removed from managing people. Every survey shows that one of the major reasons people leave a firm is because of mistrust, dislike, or incompatibility with the immediate manager. While these suggestions are in no particular order, if asked I would put this one first. Poor managers are the worst enemy of retention that an organization can have. Reputations spread and can infect many people and can start a negative buzz about working for the company in the marketplace.
6. Remember that we have entered a time when the employees are in charge. They can cripple your success and they know exactly how. They own the tools of production, and management needs to understand that the best companies, those that are most financially successful, have employees who enjoy "just enough" management and a lot of freedom. Today's employees are better educated, more independent, less afraid, more secure, and far more entrepreneurial than those of even 10 years ago. This means that HR policies and management styles have to radically change.

Thanks to Kevin for letting us re-publish his tips. You can reach Kevin at kevin (at) glresources.com to learn more.