Reducing Turnover and
Increasing Retention
Tips and Tactics for Supervisors
Session Objectives
You will be able to:
• Identify the costs of excessive turnover
• Calculate and analyze your department’s
turnover rate
• Determine causes of turnover among your
employees
• Understand what your employees want
from their jobs
• Develop an effective turnover reduction
strategy
© Business & Legal Reports, Inc. 0509
Session Outline
• Direct and indirect costs of turnover
• Voluntary vs. involuntary turnover
• Determining causes of turnover
• What employees really want
• Tactics for retaining employees
© Business & Legal Reports, Inc. 0509
Employee (Dis)Satisfaction
• Large percentage of
American workers
dissatisfied with jobs
• Many plan to move on
within a few years
• National voluntary
turnover rate is around
20% a year
• Monthly turnover rate
is over 3%
© Business & Legal Reports, Inc. 0509
The High Cost of Turnover
• Direct costs
• Indirect costs
• Total costs
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Voluntary Versus
Involuntary Turnover
• Involuntary turnover
• Voluntary turnover
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Calculating and Analyzing
Your Turnover Rate
• Company turnover rate
• Department turnover
rate
• Comparing turnover
rates
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Calculating and Analyzing
Your Turnover Rate (cont.)
• Variation in rates
• You have a problem if:
• Annual voluntary turnover higher than 20%
• Department has higher turnover rate than
company
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Determining the
Causes of Turnover
• Exit interviews
• Conversations with
employees
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Determining the Causes of
Turnover (cont.)
• Questionnaires
• Surveys
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Facts About Turnover
• Questions?
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What Employees Really
Want
• Good, safe work environment
• Good boss and co-workers
• Opportunities for growth and development
• Meaningful, challenging work
• Having enough time to do quality work
• Recognition
© Business & Legal Reports, Inc. 0509
What Employees Really
Want (cont.)
• Freedom to use judgment and initiative
• Being part of a team
• Fairness and consistency
• Clear goals and well-defined tasks
• Deciding how to perform tasks
• Influence and decision-making opportunities
© Business & Legal Reports, Inc. 0509
What Employees Really
Want (cont.)
• Adequate resources
• Being able to take pride in their work and
the organization
• Sharing ideas and solving problems with coworkers
• Being consulted when affected by decisions
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Hire the Right People
• Explain the job
• Define your
expectations
• Look for a good fit
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Get Off to a Good Start
• Orientation
• Training
• Coaching
• Teamwork
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Provide a Healthy, Safe,
And Secure Environment
• Health
• Safety
• Security
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Provide Leadership and
Direction
• Set clear goals
• Define responsibilities
and set limits
• Explain policies
• Be fair and consistent
• Deal with all
complaints promptly
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Challenge Employees
• Assign meaningful work
• Encourage initiative
• Delegate decision-making responsibility
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Challenge Employees (cont.)
• Cross-train
• Build self-confidence
• Remove barriers to
performance
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Provide Opportunities
• Training and coaching
• Promotions
• More responsibility
• Special assignments
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Offer Constructive
Feedback
• Reinforce positive
behavior
• Correct inadequate
performance
• Make good use of
performance reviews
• Set a good example
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Promote Open
Communication
• Share information
• Listen to employees’ concerns
• Welcome ideas and suggestions
• Encourage interaction among employees
• Manage conflict
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Recognize Achievement
• Reward exceptional
performance and
outstanding
achievement
• Don’t forget to
recognize regular
work, too
• Provide incentives
• Celebrate group
success
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Offer Adequate
Support and Supervision
• Be accessible
• Show employees that
you value them
• Provide guidance and
instructions
• Help people learn from
their mistakes
• Stick up for your
people
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Provide Sufficient
Resources
• Tools and equipment
• Supplies and materials
• Training
• Time
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Remain Flexible
• Help employees
balance their work and
personal lives
• Capitalize on diversity
• Accept change
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Retention Strategies
• Questions?
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Key Points to Remember
• Employee turnover is a costly problem
• A voluntary annual turnover rate in excess
of 20% or above the company average may
indicate a problem
• You need to identify causes of turnover and
develop strategies to retain employees
© Business & Legal Reports, Inc. 0509