Are you a business owner struggling with a high employee turnover rate?

Watching employees come and go isn’t just frustrating — it’s expensive. The average cost of recruiting and training a new employee is over $4,100. Even the smallest businesses will pay around $1,500 to onboard one new hire.

If some of your HR goals for 2021 include attracting and retaining the best talent, you’re in the right place. In this post, we’ll offer four actionable tips to help you reduce your employee turnover rate.

1. Hire the Right People

Obviously, you want to hire someone who has a great track record and the necessary qualifications for the job. But you also want to make sure that the candidate is a good match for the company culture too.

During the interview, explain the ideals and beliefs your company is built on. Whether it’s one of strict hierarchy or creative expression, be upfront about the way you do things (and how you expect your employees to act).

No matter how outstanding the candidate looks on paper, they won’t stick around long if they don’t “fit in” with the workplace culture.

2. Offer a Flexible Work Schedule

This might not be possible for all businesses. After all, if you run a restaurant or a construction site, you need your employees there at specific times.

If it’s possible, however, embrace the shift towards remote work and flexible working hours. The pandemic forced many companies to switch to remote working overnight, but many employers found that their workers were actually more productive.

Better yet, employees who have some freedom and flexibility with their schedules will enjoy a better work-life balance. Happy employees are loyal employees. As a result, you’ll notice a much lower employee turnover rate.

3. Give Praise & Promote From Within

This is one of the main ingredients in boosting employee morale and creating a positive, productive workplace. When your employees do an outstanding job on a task or a project, acknowledge it!

But don’t stop there. Create learning opportunities for your staff with continuous training or educational incentives.

If you don’t think this matters, think again. 94% of workers will stick with a company that’s invested in helping them learn and advance their careers. Outline clear career paths that are available so your employees can imagine long-term growth with your company.

4. Create a Stellar Benefits Package

No matter how much your employees love their work, they still have bills to pay. Offering competitive salaries is one sure way to attract and retain top talent, but more is also needed.

Think outside the box about which perks will excite your employees the most. Could you offer a four-day workweek or work-from-home options? Could you make the office pet-friendly or upgrade the break room? What about practical benefits such as gym memberships or student loan assistance?

Even if you can’t afford a lot of these “extras,” don’t overlook standard benefits like healthcare coverage and paid time off. With the help of a PEO, even the smallest companies can offer terrific employee benefits.

Reduce Your Employee Turnover Rate in 2021

If you want your business to thrive in 2021 and beyond, you need to retain your best employees.

Hire workers that are a good fit for your company culture. Be generous with praise and promote from within. Encourage company loyalty by offering employees flexible working hours and great benefits.

Of course, reducing your employee turnover rate isn’t the only way to set up your business for success. Have you considered outsourcing those time-consuming HR and administrative tasks so you have more time to focus on business?

Click here to learn more about our PEO services and how they can streamline the way you run your business!