When exploring ways to reduce employee turnover, you may be tempted to look at compensation first. This, however, isn’t always the right path. While compensation plays a role in employee turnover, so do factors like company culture, opportunities for advancement, and recognition. One common bond ties all of these together. According to a Gallup poll, 75% of the reasons that employees leave their positions can be linked to management issues.
Your middle managers influence everything from pay and benefits to employee recognition programs and incentives. To reduce turnover, you need to empower your managers to improve the relationship with employees. When employees have the support of their managers and know what’s expected of them, they’re happier and more productive. Here are three easy ways to make that happen.
How to Reduce Employee Turnover Without Increasing Compensation
Customize Employee Performance Plans
Clear cut goals are essential for anyone in an organization. Nearly one-third of employees reported leaving a company due to a lack of advancement opportunities. By offering clear-cut goals designed for an employee’s specific role, companies demonstrate room for advancement. This is especially important in metric-driven environments. While subjective manager appraisals are valuable, metrics offer a more objective way to track performance. Some common ways metrics can be applied include:
- Call completion rates – For employees in customer service or other call center environments, tracking how many calls an employee takes and how many issues are resolved offers a clear indicator of productivity.
- Deadline adherence – You can track employee performance by the deadline, which includes keeping track of high-performers who meet deadlines earlier than anticipated.
- Callbacks – For those who provide service, whether they’re repairing air conditioners or setting up security systems, callbacks can be a valuable indicator of success. After all, the less frequently these individuals must revisit a site, the more productive they will be.
- Customer satisfaction results – Employees who are consistently customer favorites for having exemplary interpersonal skills can be rewarded based on how often they receive a positive review.
To determine the best goals for your staff, take a look at metrics like these, along with employees’ past performance. You can then break those goals down by categories, determining who meets expectations and who exceeds them. Create a custom plan for each employee that informs them exactly what they need to do to advance with your company, and you’ll likely see turnover rates improve.
Recognize Behavior That Goes Above and Beyond
In one survey of HR professionals, it was noted that 90% believed that recognition programs improved employee engagement. As engaged employees are also happy employees, it stands to reason these programs can have a direct impact on retention. These recognitions don’t always need to be compensation-based. Things like company branded swag, gift cards, and public recognition can be great ways to keep the staff happy and productive.
You can give these rewards both when employees reach or exceed performance goals, as well as for one-off times when they go above and beyond in their role. Examples of that “above and beyond” may include taking on a leadership role, putting in more hours to help their department reach deadlines, or receiving an excellent review from a customer. Recognize when an employee’s actions are extraordinary, and they’ll feel appreciated. Valued employees tend to stay loyal to their companies.
Embrace Friendly Competition
An employee’s desire for recognition isn’t limited to management. They want to stand out among their peers. Competition can help drive productivity and make your top performers shine. The key to employee competition is keeping it friendly. Focus on what’s to be gained through winning, rather than what’s at stake by losing.
So, for example, a competition where employees win the right to select an item from the company store acts as a positive incentive that excites employees. On the other hand, a competition to determine who’s working on Christmas is a poor example, as it causes the employees to focus on what they have to lose. Competitions like that actually stand to increase turnover, as they increase employee anxiety.
The key to reducing employee turnover lies with your managers. Empower them with the resources they need to create custom performance plans, offer rewards, and hold friendly competitions among employees. By providing recognition for a job well done, companies can improve their culture and keep their top performers.
Getting Started
Inproma can support your employee incentive program by helping you create goals and providing the rewards for meeting those goals. We work with a wide range of popular brands employees can choose from when being rewarded for exemplary work. If you’re ready to improve your retention through positive incentives, let’s talk.
