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Employee Turnover: Definition & How to Deal with it?

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Human Resources

15 June 2022

Employee turnover is the rate at which employees leave a company or an organization at a specific period. It is typically measured annually. Moreover, it is one of the most challenging problems companies have faced. Therefore, figuring out how to reduce turnovers and increase retention is essential for any human resource department.

In this article, we will be providing you with the causes of employee turnover. Moreover, we’ll show you how you can practically reduce the number of people who leave your company.

                                             The Causes behind Employees Turnover

There are so many reasons behind employee turnover. For instance, most people leave a job for another who will give them an added value. It’s either more money or better benefits. 69% of employees quit their company for better pay, and 21% for better benefits.

However, sometimes an employee quits for professional development. Lack of opportunity for growth or career development will eventually make them leave for another company that will provide them with that.

Another reason why they might leave is overworking or burnout. A better work-life balance is a must for anyone these days, including employees!

                                                6 Tips to Reduce Employees Turnover

Hire the Right People

Avoiding employee turnover starts with finding the best fit for your company.

Hiring people with the best skills is essential, but you always must pay attention to candidates’ behavior. During interviews, you can ask your candidates behavioral questions to see their reactions and if they fit your company’s culture.

In addition, you should be clear about your company’s view and culture from day one. You should also inform your new employee about how your company works and operates. A highly skilled person who is not a good fit for your company’s culture will do more harm than good and won’t stick around for long!

Provide Flexibility

The restrictions imposed by the pandemic have changed people’s priorities, and 18% of employees would quit for more flexible working hours and locations.

However, flexibility at working hours and locations doesn’t always mean remote working. It might be in flextime form, where the people working with you are supposed to work a standard number of hours but can choose when those hours are. They also can have a compressed workweek or a job-share where an employee rotates days working from the office.

The idea is that you allow your employees to have a balanced work-life, and this will keep them fulfilled and happy, which will positively affect their productivity, thus reducing employee turnover.

Recognize and Reward Your Employees’ Efforts

Are you looking for a simple way to reduce your employee turnover issue? We have a strategy for you. A simple “thank you” could make someone’s day and make them more engaged. Always remember to remind your employee that you appreciate their hard work.

When your employees do something to be praised for, congratulate them for their efforts. Submitting a challenging project or finishing a task before the deadline are one of many examples where you can compliment your employees. The aim here is to create a positive and encouraging working environment.

Provide Development and Growth

Personal and professional growth is very fundamental in one’s life, and your employee is no exception. They are more likely to quit if they don’t receive any development opportunities in your company. Employees nowadays usually expect to improve their current skills and acquire new ones in their job.

Developing your employees’ skills and talents will benefit both you and them. Instead of hiring new people, which is both time-consuming and costly, you can invest in your current employees’ talent and help them develop it. That will make them satisfied and encourage them to stay.

One way of showing your employees that you care about their growth is to encourage your managers to have regular meetings with their team to discuss their goals and how the company could help to achieve them.

Offer Competitive Wages and the Right Incentives

Salaries and benefits are one of the most important reasons behind employee turnover. That’s why you need make sure that your company is providing a competitive income for its employees, so they won’t leave for that reason. So, we suggest that you do market research about the wages offered by other companies in your area and then decide on what’s best for your employees.

You can’t provide your employees with only a paycheck and expect them to stick around for so long. To keep your employees motivated, you should offer more benefits. Incentives such as childcare, free meals, and an onsite gym will reduce employee turnover in your company.

And if you don’t provide your employees with any benefits, they would leave for another one that offers some.

Create a Work-Life Balanced Environment

Always remember that your employees have a life outside work. And having a balance between life inside and outside work is crucial for employees’ productivity. A burnout employee would not benefit you at any level. So, your company should create and prioritize a work-life balance.

Setting flexible hours, allowing employees to work remotely, and providing them with little incentives and praise are simple solutions to overcome this issue.


In a nutshell, no matter what you do, there would be employees who would leave your company. Maybe because they want to be a stay-home parent or decided to pursue a more creative career path. However, use these tips to keep the employee turnover rate at a healthy level. What is more, make sure that your company collects and analyses turnover-related data, so it can identify where the glitch comes from and act upon that.

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