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How to Reduce Employee Churn

Eric Vardon Profile image
Eric Vardon
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You’ve built your A-team.

A.K.A a group of all-star employees that are crushing it.

But, one wishes to leave! Have you been there before?

This causes a headache as you now have to interview new candidates and worry about who’s going to do their work in the meanwhile.

We all experienced this as business owners building teams.

But, here’s the thing: you can reduce employee churn if you set up your organization the right away and apply a few simple strategies.

Because, here’s the reality: the average annual employee turnover rate is between 12–15%. Not good.

If you have a team of 100, you’re losing up to 12–15 employees every year. And, it doesn’t stop there. A single lost employee can cost up to 33% of their salary!

But, I won’t spook you anymore. Let me teach you how to reduce employee turnover.

Hire the right candidates from the start

We’ve all had employees who weren’t the best fit from the beginning. But, heck—maybe we needed someone to fill a role quickly or didn’t know any better. 

Hiring the right candidates, screening them, and ensuring they meet strict quality standards will reduce turnover. It’s that simple.

Firstly, you need to have a detailed picture of them beyond education, skills, and regular resume information. 

What’s their personality like? Are they good with people? Are they social? Do they bring people up or drag them down? These are the questions you need to be asking.

Companies can refine their screening process to ask these types of questions or propose similar scenarios. This helps screen out the individuals who may not be the best fit for an organization personality-wise.

After all, thriving corporate cultures generate up to four times more revenue!

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Create an office and work culture worth working in

Nobody wants to work in a boring office or a dull cubicle. It’s true. People want to feel like their at home. They want to feel comfortable and engaged. This will boost focus, attention, and productivity.

Don’t believe me? Consider for a moment that 85% of employees aren’t satisfied with their workplace.

It makes sense. You ever took a good look around? Some corporate buildings are closer to a dentist’s office than anything.

Oppositely, look at Google, Facebook, Dropbox, and other big tech companies. They do it right. Their locations look and feel like a college campus.

There’s colourful artwork, interesting designs, open spaces, and modern offices. It makes team members want to come into work.

Revamping your office could be as simple as:

  1. Adding more plants and natural elements.
  2. Implementing more windows, higher ceiling, or balconies.
  3. Adding recreational items like foosball, ping pong, etc.
  4. Having an in-house kitchen that employees can use.
  5. Allowing employees to customize their workspace.
  6. Making spaces open and less claustrophobic. 
  7. Putting up stimulating artwork and decor.

Give credit where credits due

Have you ever accomplished something but nobody gave you credit?

It feels cruddy, right? 

Don’t do that to employees.

It will make them much more likely to leave. And, it’s not just my opinion. It’s a fact.

69% of people agree that they’d work harder if they felt more appreciated and encouraged in the workplace.

Who wants to put in the sweat equity and elbow grease if their boss and colleagues don’t care? Not many.

All it takes is congratulating employees on performance, giving them credit, and encouraging them to keep up the good job. It’s that simple, guys.

Offer competitive pay and benefits (it’s important)

Let’s get serious. 

A big reason why employees apply for and seek jobs is to make a living.

They have bills to pay. Things to do. Places to go.

Naturally, a competitive salary, benefits, and perks will be of interest to them.

Offering these things will help keep them around for longer, which in turn, means they get more work done for your company. 

There needs to be room for growth and a career ladder to climb, as well. Make it known that there other lucrative and rewarding positions they can work up to if they stay with your company.

Allow for a flexible work schedule

Things happen.

People can’t always come into the office or make it on time.

If it’s because of a genuine reason, I believe that you should offer flexible work schedules.

This should especially be the case if employees have been doing really well in reaching KPIs, weekly goals, and completing projects.

Furthermore, it’s been discovered that 77% of employees say that flexible work schedules improve their productivity.

Give them a reward like the ability to leave the office early, come in a bit later, or work from home.

At the end of the day, performance wins over everything. If your teams are achieving goals and pushing projects forward, that’s what matters.

Have a clear onboarding process

“So, uh… You’re hired! When can you start?” Those might’ve great words to hear when you were a teenager looking for a part-time job, but not a lifelong career.

It implies that they don’t have a solid onboarding process to get you started.

Oppositely, that’s why you should have one.

An onboarding process educates employees, shows them around a location, introduces them to others, and speeds up how fast to adapt to the environment.

It also saves time and energy versus having to scramble to get new employees use to working within your organization.

 I suggest mapping out the exact steps needed, including:

  1. Completing a background check.
  2. Introducing them to team members.
  3. Showing them the work environment.
  4. Offering in-person training.
  5. Giving them additional documents and resources.
  6. Etc.


Losing employees is tough. Especially talented ones.

You have to rush to find a replacement, somehow finish up their remaining work, and hope it doesn’t cost an arm and a leg to fix.

However, you can prevent this from happening in the first place.

It is done by hiring qualified candidates from the start. Thye should suit your workplace culture and motivate others to work hard.

On that note, consider building a workplace culture where employees look forward to coming in every day. This is achieved by hiring the right talent, encouragement, and a stimulating environment.

Onboarding them should be streamlined, too. Everything from being given resources to signing papers and meeting others needs to be seamless.

They should be offered a competitive salary, bonuses, and future options to entice them to work hard and stay for the long term, too.

Last but not least, try to be flexible. Let team members come in later, leave early, or work from home if there’s a genuine reason and their performance has been phenomenal.

Try Morphio today for free!

Eric Vardon Profile image

Eric Vardon

CEO, Co-Founder @ Morphio

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