How can Employers Retain Staff and Minimize Employee Churn


In any form of business, it is vitally important to take steps to ensure that employee churn is minimized. Employee churn is another word to describe the staff turnover rate in an organization. For example, if a company employs 100 staff and, in each period, ten leave to pursue other jobs, the employee churn rate will be 10% of the total workforce.

Companies with high levels of employee churn face several key problems. For example, recruitment costs will be higher in an organization that needs to regularly hire new starters to replace those who have left. In addition, when staff leave a firm, time and money are needed to train employees in company practice and specific working techniques.

In this article, some of the key ways in which employers can minimize employee churn and retain a larger proportion of the workforce over the long term will be explored.

Offer comprehensive health benefits

One of the most effective ways to retain staff is by offering them a comprehensive range of health benefits when they join the organization. Many workers and their families will have specialized healthcare needs such as access to vision, dental and smoking cessation services. By providing a comprehensive benefits package for staff and family members, employers are helping to improve the health and wellbeing of their workforce. If the level of benefits offered to staff outstrips the offerings of other employers, this creates an incentive for the staff member to stay with the company to continue to benefit from the services that are provided. In 2023, an organization that offers a substandard health benefits package to its staff may be inviting higher levels of employee churn. Put simply, these schemes demonstrate the value a firm puts on the health of its employees and can be a key way to retain them over longer periods of employment.

Consult staff when decision-making

Many adults of working age will have been employed in companies where senior managers seem to act completely autonomously. Staff may find that they come into work one day and are told that their roles, responsibilities, or how they undertake tasks have changed. When staff are not consulted on these changes, it can be extremely demoralizing, especially if the new working methods are more difficult to accomplish or have no clear improvement benefits. This may lead to staff feeling undervalued and seeking employment elsewhere. Staff should always be consulted on working practice changes, ideally, providing their own input to the proposals. In addition, when changes are taking place that do not affect staff members working practices, they should be effectively communicated to outline the benefits of the modifications.

Opportunities for promotion

Any firm that seeks to retain its most talented employees should ensure that there is a wide range of promotion opportunities and that internal applicants are always considered for senior positions. Internal promotional opportunities have several key benefits. They can lower recruitment costs and ensure that high levels of productivity continue when a new role is undertaken (external staff will need to adjust to company working practices and this can take time to reach high levels of productivity). In addition, high-performing staff will be far more likely to remain with the organization if there are clear paths to progression with an emphasis on hiring internally.