When a company has a high employee turnover rate, it will need to spend more time and money recruiting high-quality candidates. A 2017 Work Institute report declared that skilled employee turnover costs range from 33% up to 200% of the departing employee’s salary.

If you were to lose several employees in a short period, you can multiply that figure by the number of employees lost, and you will see that it can be a very significant expense. However, if you were to take steps to retain your best employees, you could save a considerable amount of money, and your bottom line would be much healthier.

To do this, you must implement effective strategies that won’t cost your business an arm and a leg. Here are a few that will help improve your team member retention rates.

1. Advertise the Role Correctly 

One good way to avoid a high turnover rate is to hire the right individuals in the first place. In exit interviews, employees often declare that they would have stayed longer if they’d had a better idea about what their role in the company was expected to be. 

Make sure that you accurately describe the requirements for any open position you have and be clear about what you expect from each employee.

Don’t leave out any of the important details about a position just because you’re trying to quickly fill an opening. You may find yourself back at square one very quickly. Finding the right fit for any employee in an open position involves being as transparent as possible about what the job entails, as well as what skills are necessary to do the job effectively.

2. Communicate Competitive Compensation

One of the primary reasons an employee leaves a company is because they don’t feel like they’re being compensated fairly or a competitor is offering a significantly better salary. 

Of course, it’s not just money that keeps an employee in place. Healthcare and insurance can be major factors as well, and all of that falls under the compensation package.

Communicate your compensation package clearly in your job advertisements and throughout the hiring process to ensure your new hires understand the compensation structure and how it relates to their future performance.

3. Deliver a Stellar Onboarding Experience 

You can start a new employee off on the right foot by providing a really solid onboarding process. After explaining a new hire’s role and responsibilities, you should also inform them about your company’s culture, mission, vision, and how the employee will fit into those overall objectives and goals.

Make sure your expectations are clear about their performance and try to provide an accurate picture of what the first few months of their employment will be like. 

Ensure that they have access to appropriate personnel whenever they have any questions or issues that need to be addressed. This is a good way to prevent a new employee from being overwhelmed by the details of an entirely new position.

4. Offer Useful Training for Long-Term Success

For any employee to be successful on the job, they will need to possess the knowledge and skills required by the position. To convey what company policies and procedures are, it may be necessary for you to provide a combination of online training, classroom training, and hands-on opportunities. 

An employee who knows what's expected of them and has the appropriate tools will have a better chance of making a positive contribution. When an employee can be better informed about what’s expected of them and are equipped with the appropriate tools to succeed, they will have a better chance of making a good contribution to the company. Continue any training until a new employee demonstrates that they have mastered the skills necessary to perform their new duties. Then, provide opportunities for professional development so that employees can continue to learn and grow.

5. Monitor Manager Performance

If you’ve ever talked to a disgruntled employee and asked why they left a company, one of the recurring stories you’ll hear is that they couldn’t get along with a particular manager. Don’t assume that your managers are all carrying out their responsibilities in the most effective way. 

6. Recognize and Reward Employee Achievements

Many people like to be recognized when they achieve something exceptional, and employees are certainly included in this group. Whenever someone has performed far beyond expectations, you should take the time to celebrate it and recognize their accomplishments throughout the company.



In addition to showing your gratitude for superior performance, it also shows others that they can also achieve this level of recognition. Not only will this demonstrate your gratitude for superior performance, but it also shows others that they can achieve this kind of recognition for excellence. One of the largest reasons that employees leave a company is because they don’t feel appreciated, so you should take every opportunity to reward outstanding performance with some kind of worthwhile recognition.

7. Demonstrate Corporate Social Responsibility

We live in an age where people want to contribute to positive solutions. You can make your team members proud to be part of your workforce in any number of ways, and this will contribute toward employee job satisfaction in a significant way.

For instance, your company might be heavily involved with contributing to charities and other worthwhile organizations. Your company might also have established a family-oriented workplace, which makes employees feel very comfortable and satisfied with employment there. 

In the age of corporate social responsibility (CSR) is more important than at any time in the past, employees want to know that they’re working for a company that is a positive force, and when they find that company, they are more likely to stay in place and continue to support it.

Even With Precautionary Steps, Unemployment Is Inevitable

Despite your best intentions, employee turnover is common in every business. Unfortunately for mid-to-large-sized companies, having to discharge employees or having them quit on you altogether is unfortunately unavoidable, even despite your best efforts. 

When this happens, some of your ex-employees will file unemployment claims against you, and depending on the number of employees you’ve had, managing these unemployment claims can be very difficult.

Unemployment Tracker Is Your Solution For Tackling Unemployment Claims 

Let Unemployment Tracker take on the administrative burden of managing UI claims. Whether you are looking for full-service unemployment claims management — offering a hands-on approach with expert guidance or looking for self-service software for in-house efficiency, employers gain a reliable partner in the unemployment process.